The idea is to attack the weak points of the mining industry with data and information. Miners can check whether they receive a fair payment through a new index.
Currently, Luxor Mining, a company in charge of creating solutions and optimizing Bitcoin and Altcoin mining pools, is creating new tools to add transparency to the industry. Guzmán Pintos, head of growth for the company that launched the Hashrate Index website, stated this.
According to Pintos, Bitcoin mining is an elegant way to convert excess energy into digital assets. He highlighted the popularity of mining pools that play a relevant role in maintaining the network. However, he also delved into how centralization, conflict of interests, and lack of transparent data are affecting its development, especially in Latin America.
A large part of the industry currently revolves around mining pools, which coordinate the hash power of miners worldwide and share the resulting bitcoins among taxpayers. Despite the growing popularity of these pools, the hashrate is not fully distributed among pools of different origins, but Chinese pools hold more than 90% of the global hashrate.
Bitcoin Mining Health Stays Transparent
Unprofessional practices that take transparency away from the mining industry stem from centralization. The computational power of mining equipment relates to the payment that miners must aim for, both for block reward and transaction fees.
There is also a practice related to the cost of ASICs that prevents the proper development of the mining industry. This is because manufacturers barely publish data in an industry that a few institutional players dominate.
Pintos noted that the Luxor team is requesting suggestions from the community for additional features on their website, which are free tools available to all miners. He adds that “those who concentrate the highest percentage of hashrate have no incentive to change that.” For that reason, he says that it is necessary to work on greater transparency along with the mining community.
Luxor’s Profit Switching Mining
Pintos also spoke about “profit switching” mining, another of Luxor’s new projects. It consists of observing an algorithm and choosing which currency is the most profitable to mine. They would implement the task in a specific pool, assigning the mission to a specific miner.
For people who are new to cryptocurrency mining, Pintos gave some advice. In that sense, he said that the first thing to do is read and seek information on the subject. He thinks that novices must educate themselves and know the industry before investing. Besides, he recommends operating an economy of scale to reduce costs, based on expansion. He also considers that being able to guarantee access to cheap energy is another important element.
Many people in Paraguay are betting on transparency in the Bitcoin mining business. One of the largest hydroelectric plants in the world is precisely in the country, which allows them to offer miners competitive rates.
By Alexander Salazar
