Generally speaking, “blockchain mining” is the process of adding transaction records to a blockchain’s public ledger of past transactions. This process is both difficult and resource-intensive and is done by devoting computation power from a "mining rig", or a single computer system, that performs the necessary computations for "mining".
For miners of tokens like Bitcoin and Ethereum that compete with global dedicated computing resources, in order to win more blocks, their machine(s) must have more mining power than their competitor's machine to remain profitable.
Mining power and profitability boils down to a simple formula involving three main components:
Mining (or Hashing) Power, Energy Efficiency, and Energy Costs.
If a miner can increase their overall Mining Power or Energy Efficiency per unit without an increase in Energy Costs, a miner can increase their profitability.
Miners can increase their Mining Power by:
- Physically adding more machines to their mining rig/farm.
Downside: This increases the Energy Costs.
- Selling their old machines and purchasing new ones.
Downside: Staying competitive via this method would require frequent replacements and downtimes, as improved hardware development occurs at a high frequency.
Emblems, the ownership token of Block Collider, represent a method for NRG miners to hedge their hardware investments by artificially boosting their Mining Power without needing to add or upgrade their machines.
Emblems grant their owners the ability to add more transactions per block mined and thereby increase their NRG reward. The size of the expanded block and larger NRG reward is dependent on how many Emblems are attached to your miner.
The additional NRG granted to users with Emblems attached to their mining address is between 2 NRG and an additional 166 NRG. The algorithm calculating the NRG bonus for EMB is logarithmic, meaning that as you own more Emblems, the relative cost of each bonus unit of NRG increases. To get any reward you must have at least 160 EMB and reaching their maximum marginal utility at 5,855,225 EMB. Any amount below 160 EMB does not grant any NRG bonus to a miner.
By enabling miners to win more blocks and even increase the rewards per blocks, Emblems provide "Synthetic Mining Power" in a way previously only possible by upgrading or adding new hardware to a miner's setup.
Updated 3 months ago