Bitcoin and Cryptocurrency as a whole has grown to a level where all aspects and angles need to be properly analyzed – and one of the best concepts to understand is a new one called Mining as a Service (MaaS).
There is also the new Blockchain as a Service (popularized from the Software as a Service (SaaS)) but for this guide specifically we are going to break down the “Top 4 Bitcoin Cryptocurrency Cloud Mining Pool Services” to choose from and why each of these have done well to date. We will jump right into comparing four of the biggest and best crypto mining as a service options to select and at the bottom have a “what is mining as a service” knowledge base so you can research and study the industry to see which hashpower provider is right for you.
We have discussed four ventures in this review based upon individual criteria such as:
- Market Trust
We figured the bitcoin mining companies were more entertaining for most and put the guide on what mining as a services are below. Without further ado, let's begin.
Part 1: Top 4 Crypto Mining as a Service Providers:
1. Genesis Mining
The first entrant on our list is Genesis.The company has been in the crypto-mining domain since 2014 and is known all across the globe as being one of the major hashpower providers in the world today.
Additionally, Genesis Mining is touted as being one of the world's first “large-scale multi-algorithm cloud mining services” and as of April, 2018, the company boasts of over 500k users worldwide.
The company provides its customers with customized services that are aimed at meeting the requirements and needs of both beginners as well as experts in the field of Bitcoin and cryptocurrency mining.
The setup is pretty straightforward. Once Genesis Mining confirms that they have received our payment, their miners start to procure altcoins on our behalf. As per the website, mining operations are carried out “24 hours a day” — starting at 00:00 UTC and ending at 23:59:59 UTC.
A key facet of this service is that users start to receive their returns within the first 48 hours of having signed up. Additionally, for users who place their orders via debit or credit cards, payouts are generally held for a period of 30-32 days before being transferred onto one’s linked wallet.
- Operational Flexibility— an underrated facet of this service is that it protects customers from paying excessive fees for small amounts added to their wallets. Additionally, there is also a set minimum payout for BTC mining which ensures that users can continue to earn a steady revenue stream irrespective of how the market seems to be performing at any given time.
- Transparency— through the use of digital contracts, Genesis Mining allows its customers to participate directly in mining activities. Some of the currencies that can be procured via the aforementioned means include Bitcoin, Dash, Litecoin, Zcash and Ethereum.
- Multifaceted usability— users have the ability to trade their payments in exchange for other coins and even determine custom allocations for their altcoin holdings.
- Quality Farming Locations— according to our research, Genesis Mining owns a number of Bitcoin mining farms that are spread all across Europe, America, and Asia.
- Advanced Functional Capacity— Genesis Mining makes use of scalable framework that allows customers to mine Bitcoin and other cryptocurrencies directly or via GM Advanced Autotrader. Additionally, the platform also makes use of quality algorithmic modules such as SHA-256, Scrypt, X-11, ETHASH, CryptoNight, Equihash to execute its mining operations.
MinerGate is a highly popular crypto-mining service that provides users with an ‘open mining pool’ where one can deploy their computers processing capacity to add hashing power to the central mainframe unit.
Upon closer examination we found that the user interface is freely downloadable and allows individuals of all skill levels to quickly start mining currencies such as Ethereum, Bitcoin (as well as other varied alt-assets).
However, at this point it should be clearly mentioned that if customers choose to use their standard desktop computers, laptops or smartphones for the purposes of mining, their earnings will be next to nothing. This is because the aforementioned devices have very little hashing power and the returns that they provide are highly limited.
In order to make use of Minergate, users need to follow a step-by-step process which has been outlined below:
- To start proceedings off, users first need to sign-up at minergate.com by providing the company with their email address along with other pertinent details. It should be noted that MinerGate does not ask for any specifics related to our annual income or tax returns.
- Users then need to download the principal software based upon the operating system that they are currently using.
- Once the download is completed, the installation process needs to be initiated.
- Using the ‘Benchmark feature’ on the MinerGate software, users should allow the program to analyze their hardware so that they can get a realistic overview of what their system’s mining capacity is like.
- Once all of the aforementioned steps have been completed, users can then start mining by either clicking on the “Smart Mining” option or by using the “Manual Mining” feature.
- Accessibility— when using this platform, anyone can participate in crypto mining activities irrespective of their knowledge of the virtual currency domain.
- Compatibility— to increase one’s mining capacity, users can combine the processing power of different computing units so as to add more juice to the central hashing system.
- Ease of Use— MinerGate is quick and simple to use. Additionally, it features a user interface (UI) that is quite straightforward and does not employ any technical jargon to get its point across.
- Advanced System Capabilities— the core AI module makes use of a host of different complex algorithms, all of whom run silently in the background.
- Customizable— one of the most innovative features of this platform is that it can be programmed to work and mine currencies when we are not actively using our PCs.
- GPU+CPU integration— Minergate has a distinct operational advantage such that it can be used from both CPU as well as GPU units to mine multiple cryptos.
Launched into the market back in Q2 2018, Hashflare provides users with the option of mining a host alt-currencies including Bitcoin, Monero, Ethereum etc.
Since its introduction, the platform has garnered a large number of dedicated users that make use of the its cloud mining services ( over 1 PH/S of hash rate generated).
The operational setup for Hashflare is quite straightforward. As per the company's website, they make use of a “non-stock version of Apollo miner” with SHA-256 capabilities for sourcing Bitcoin. Similarly, for purposes associated with Scrypt mining, the company deploys the famous Ares mining tool.
It should also be mentioned that the parent company behind this project (HashCoins) provides its dedicated hardware setup with a constant power supply of upto two Megawatts. This not only enables seamless mining but also ensures that third-party entities cannot force their way into controlling the HashFlare mainframe.
- Customizable: one of the most unique features of HashFlare is that it allows users to switch or change their mining pools as and when they see fit.
- High Performance: according to data that we could source from various trusted forums, we found that the mainframe mining computer possesses a capacity of 1 PH/S.
- Referral Bonuses: to help customers make more money on the side, HashFlare offers a ten percent referral bonus on separate mining transactions.
- Timely Payments: according to more than 20 reviews that can be found online, the company is always sharp with their payments and in case there are any issues, system admins always make it a point to address ongoing problems via their social media channels.
NiceHash can be described quite simply as a “special multi-mining pool” that allows users to mine as well as sell any hashing algorithms via its native marketplace.
When looked at in more detail, we can see that Nicehash charges a 3% fee on all mining processes but despite this levy, selling one’s hashpower via NiceHash is usually more profitable than mining the cryptocurrency itself.
How it works…
The platform is quite easy to use and customers looking to buy hashing power for mining purposes need to start by registering with the company. Once registered, users then need to direct the obtained hashing power towards the buyers.
Following this, users need to set the bid price for mining and execute a new order. It should also be noted that customers who enroll with a buyer package will be able to monitor their orders on the live marketplace.
As per the website, for customers to start making use of this service in its entirety, they are required to fulfill a minimum payment order of 0.005 BTC (for every algorithm). Not only that, it should also be mentioned that no contracts are incorporated on the site, thus users have the freedom to cancel their membership at any time
Lastly, we found that buyers are protected through NiceHash and are never required to pay for “faulty rigs or invalid shares”. Not only that, they also have the option to track the operational activities of their hired miners remotely.
- Good Online Presence: as per our research, we have found that NiceHash possesses a global web ranking of 3,991(which is quite impressive to say the least).
- Market Backing: another key facet of this service is that it draws an average of 19.50 million visitors on a monthly basis. Out of this figure, most of the traffic is generated from countries such as Russia, the United States and Japan.
- Unique Setup: when looked at closely, we can see that NiceHash makes use of a sustainable business model that revolves around an intuitive seller and buyer dynamic. As a result of this, users have the freedom to choose between a variety of lucrative investment avenues.
Part 2: What Is Mining as a Service (MaaS)?
Now that you might be familiar with some of the industry's best cryptocurrency mining pool providers, let's go over what makes mining as a service function and feature the questions you must have by now.
Now is always a good time to investigate how cryptocurrency mining works. The phrases like bitcoin mining and digital gold usually present images of men mining crypto with hard hats and pick axes, but obviously this is now how cryptocurrencies are actually minded. This then leads us to the question of what mining is, and what is mining as a service?
Back to basics
What we know so far that mining is not done with a pick axe or your bare hands, as a powerful computer rig and computer science degree would work better. You definitely need to know what you are doing when it comes to crypto mining, so it would be best to avoid mining if you don’t know your way around a computer or a single line of code.
For starters, bitcoin mining is accomplished by running the SHA256 hash verification processes. This is so that the Bitcoin transactions are able to be validated, and this works as a healthy barrier of entry to mine on the public ledger. It should be noted that anyone can mine bitcoin, but you do need to have the required knowledge and tools to complete the verification process.
Anyone can mine coins like Bitcoin, Litecoin, or Monero – all of which run public blockchains. There is no censorship on these networks as to who can read from them or write to that particular blockchain, provided they can pass the SHA256 hash.
Why should you mine cryptocurrencies?
Another question that seems to come up a lot is why people would be interested in mining cryptocurrencies. So, what’s in it for you? And what’s the reward? The answer to that question is apparent, hence the growing sentiment and enthusiasm about mining this virtual gold. Miners are rewarded for their work in bitcoin, appropriate to the speed of their mining measured in hashes per second. In other words, the faster their computers are, the higher the potential reward.
Miners collect transaction fees that are in proportion to the computing power they contribute to the network. The transaction fees are split between two types: the Coinbase transaction, also called the block reward, and the send-attached fees, which are set via supply and demand of the market to make sure that each transaction is made quickly.
Public and Private Blockchains
Stepping outside the realm of public blockchains, there are also private chains, or permissioned blockchains that have restrictions on who can see, read, and write to their networks. The benefit of a private blockchain involves some centralization and a trusted third party.
A key benefit to permissioned chains is that they have a higher performance and lower cost to operate versus public chains, given that they are closed system. You can think of a permissioned system like a company intranet for internal use, but they have restrictions as to who can access its data.The reason this matters is not all blockchains and/or cryptocurrencies are mineable and some require masternode consensus protocols.
Should You Invest Into a Mining as a Service (MaaS) Provider?
Similar to precious metals and diamonds, there is a finite supply of bitcoin and other popular currencies, which means it presents a significant investment opportunity for miners (blockchain payment transaction verifiers) and companies that offer MaaS like the four above in Genesis Mining vs MinerGate vs HashFlare vs NiceHash and even new outsiders coming up like DMG blockchain.
Although the block rewards halve every four years and will eventually go to zero (projected year 2140) and almost 80% of the entire bitcoin coins have been issued, there is extremely high competitiveness going on at the top of the food chain for mining new bitcoin blocks – see blockchain.info/pools – and these mining as a service providers are willing to buy hardware equipment (usually many months in advance) and hook them up and burn their own electricity all in exchange for your hands off investment in hope for daily profits and returns.
Companies like Genesis Mining provide MaaS solutions for companies and groups of investors who want to mine bitcoin on a large scale without the upfront expense or technical expertise to. Genesis Mining manages the whole mining process on behalf of its customers (in Iceland and all over the world), supplying a steady flow of profit and revenue that is independent from the price of bitcoin. You can always take a look at the top bitcoin mining hardware of 2018 as well to get a real comparison of what it takes to start mining in your bedroom to buying cloud mining pools to setting up entire warehouses full of miners.
In conclusion, as most of our readers know, the most popular question we get is “should I invest into bitcoin” and we always say #YES and to add on to that answer we contend that for the new cryptocurrency investor that joining in on a bitcoin mining provider is one of the best ways to get your feet wet and your coins stacking residually.