The success of Bitcoin ultimately depends on the health of its mining industry. Bitcoin mining is central to transaction validation, the prevention of double spending and the hard cap on the bitcoin supply — basically, the things that make Bitcoin the revolutionary technology that it is.
And Bitcoin mining has evolved dramatically since it was first introduced. Today, a large portion of the industry revolves around mining pools, which coordinate hash power from miners around the world and share any resulting bitcoin among those who contributed. But despite the rising popularity of mining pools and their central role in maintaining the Bitcoin network, a lack of formal infrastructure and transparent data may be preventing the industry from developing even further, particularly in North America.
That’s why the team at mining software provider Luxor has introduced Hashrate Index, which features an intuitive hash price tracker, a mining rig price index that aggregates more than 4,800 ASIC sales and a curated list of mining collocations.
“Historically, the manufacturing companies have had unprofessional corporate policies for things such as machine performance, transparent pricing, insurance, etc.,” Ethan Vera, the co-founder of Luxor, told Bitcoin Magazine. “Then you need to connect to a mining pool that you can’t verify is paying you the correct amount. The industry is still very much so opaque… We think that a data site like Hashrate Index will allow investors to get more comfortable with the industry and usher in a new era of North American mining investment.”
To create the tools, the Luxor team leveraged its three years of experience in the mining industry and sourced the data that it felt would address miners’ most significant pain points. The hash price tracker, for instance, is an estimate based on the full-pay-per-share (FPPS) rate for Bitcoin mining pools.
“The FPPS rate represents the expected value for both the block reward and the…