Whitepaper Entrepreneur is Steemit's first open-source repo for blockchain business ideas.
Abstract:
Currently there is an emerging market that offers people GPU & ASIC based hashing power for a monthly cost. The model for these cloud-based mining companies ask for subscriptions in return for their hash power. Many of these companies sound like a great idea, but due to centralization can fall short of what they promise. In this whitepaper, I propose that this industry requires the use of decentralized tokens, as the number of fly-by-night companies popping up to offer cloud-based mining services are on the rise. By incorporating a token, users can rest assured that their investment is more secure and tangible than a monthly subscription.
With HashCoin, the company cannot promise more than they're able to offer, as the payout is based on the total hash-rate, and you can peg the value of the coin to the value of the businesses holdings, plus the value that tokens are able to produce.
Value Proposition:
To facilitate the needs and interests of the mining community through a trustless token-based system.
Methods:
To make HashCoin a reality, you will need a large amount of hashing power. Combined with the ability to offer mining of certain coins, based on the user's preferences. Each mining option will have a different output based on the current difficulty and the portion of hashing power that the user commits their stake to.
For example, if your BTC systems have 10,000 Th/s and there are 100 users each with 10% of the total stake, each user would get a representational proportion of the hashing power. If you decided to shift your stake from one mining pool to another, the other users will pick up the assume the hashing power that is left behind and join the new pool.
To control the total allotted hashing power for each supported coin, the system would allow users to upvote under-served, or important currencies, but also nominate new minable currencies to join the system. This threshold-based allocation system shows us the communities interests and their need for increased system power.
Discussion:
To reduce HashCoin liquidity, we'll take a page from Steem's 'Power Up' feature. Users will be able to hold stake to begin hashing in the system. If you'd like to power down, we'll pay you out in 13 weekly payments over the course of 3 months. During this time you will be able to continue hashing with your remaining stake.
HashCoin may not be a perfect business idea due to costly mining expenses, but I offer it today as your Whitepaper Entre to show that companies like genesis and their competitors could expand their horizons by offering exactly what they're able to offer based on the total system power and community voting.
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