Proof of Work mining can be very lucrative, but the advanced knowledge required and expensive equipment needed are quite the barriers for an individual to enter. In an effort to make mining accessible for everyone, Maximine proposes a decentralized cloud mining pool to provide a transparent mining solution for investors with insufficient capital. Instead of a contract payment, investors deposit capital for the duration of the mining contract, resulting in a minimal capital loss.
The MaxiMine company, operating out of Singapore, managed to raise over $13 000 000 for their project during the duration of the ICO.
The different hardware is suited for mining different coins and tokens. With a mining rig of his own, the individual must chose and commit to what coin he mines. For example, ASIC miners are developed for Bitcoin and cannot be used to mine Ethereum. MaxiMine will allow its users the freedom of switching between different tokens and mining pools in order to allow them to maximize their profit.
MaxiMine utilizes a hashing power credit system that works similarly to a Proof of Stake algorithm, where token holders can stake their tokens in order to gain proportionate rewards generated by the mining pool. Also, the company’s strategic partnerships with mining industry giants like Bitmain will ensure it has early access to state of the art equipment, like Bitmain’s ASIC specifically designed for Ethereum.
Compared to traditional cloud mining, Maximine does not rent or sell hashpower, but rather creates liquidity in hash power and equipment through the usage of tokens. Users deposit their MXM tokens via a smart contract, after which they’re provided with the hashing power for the specific coin for the duration of the contract.
There are no huge flaws with the project, however that is not the case with the industry. Mining, especially cloud mining is a bit of a hit or miss. You either get a decent return or you get locked in on an unprofitable contract. There are also a lot of cloud mining scams going around which has severely impacted the trust that investors have in these sort of services.
MaxiMine’s strategic partnerships put it at a significant competitive advantage, however, the project itself does not have a strong blockchain use case which shows in the fact that’s relatively unknown as people who are interested in cloud mining go to centralized, industry-leading companies.
