Titan's Solution - The Lumerin Protocol

Titan solves the problem of lack of access to hashpower, by creating a peer-to-peer and decentralized, trustless platform that supports a marketplace for mining hashpower, essentially making hashpower a DeFi offering.

By connecting investors outside of mining-friendly zones with the hashpower they wish to buy, we increase the flow of capital and the overall crypto compute power, and connect small players to large economies of scale previously inaccessible to them.

The Lumerin Protocol, an open source project, creates a unique Non-Fungible Token (NFT) for each mining device. This NFT then can be sold, giving the new owner full control over the device's configuration, and the ability to sell its hashing compute power in an open market. The mining device, through its unique NFT, is now essentially de-coupled from any restrictions imposed by its location and ownership.

To give a quick run-through of how selling hashpower works on Lumerin Protocol: the seller (with the hashpower device) creates a Smart Contract and locks a stake in Lumerin tokens into the contract as collateral. A buyer reviews and then accepts the contract. The contract is recorded on the Lumerin blockchain and the hashpower is re-routed from the Sellers's device to the Buyer's destination.

With this approach, miners can create financial products on top of the hash rate they're generating. They can monetize their hash rate into the future. They can do short-term device rentals or rent their hash rate out in time allotments over 30 days or 60 days.

One promising product is hashpower futures. Currently, miners must invest large amounts of fiat capital up-front, and face an uncertain crypto return in the future. A crash in the crypto market creates a severe risk for miners. This situation is somewhat analogous to a farmer who invests in labor and machinery. If the crop fails, he won't get returns to pay off his investment. The economic solution to this is agricultural commodity futures: a farmer can sell some of his produce in advance at the beginning of the season, at a price slightly below the market price of the produce. In the event of crop failure, the farmer has pocketed the money already, softening the worst of the risk. In the event of a successful harvest, the investor has bought the produce at below-market rate, netting a profit. Titan enables something similar with hashpower; small investors can buy hashpower in any amount they like, without investing in mining infrastructure, and can make a profit, while the big miners mitigate their risk.