Awesome questions! long reply ahead...

> #### what is in it for you as the provider?

Risk and variance.

I have to pay for hosting costs monthly in USD, these contracts sell for slightly more than that for consistent rev. But i wouldn't call the contracts a risk derivative.

> Technically you're losing sats

By end of contract in a week, yes.
But as of today, no.

Actually, still haven't ROI'd since the contract started.

![](https://m.stacker.news/156303)

> clean untraceable

The downside of making this all transparent / open source is that connection could be made viewing the public contracts and the blockchain.

> non-KYC coinbase sats paid directly from Ocean

The upside making this all transparent / open source :)

> your client is taking the PPLNS risk

Yes, ocean uses [TIDES](https://ocean.xyz/docs/tides) though.

> #### are outages part of the risk package you sell?
>
> What kind of uptime SLA are we talking?

Yes! 95%, that's a buffer from my own miner hosting provider SLA. \~1900 blocks min-up time, and aiming for 2000 blocks.

> How are you going to ensure for your client that you're going to be able to deliver?

I hold X in escrow (maybe a tx with nlockheight after mining period?) for unpaid blocks. It's calculated and agreed to at start of contract, to be paid out at end of contract if below SLA.

An upside making this all transparent / open source, this can be used to determine a reputation for the miner over time

> Since the rent period is bound to a retarget period, it's not like you can just run it longer as the retarget may break profitability calculations. Refund downtime?

I think this is an advantage actually :)

It's more accurate since bitcoin doesn't actually know the time. The network only pays out when a block is mined, so even if it took an hour to mine (rare, but happens) the payout would be 3.125 btc for the whole network for that hour, not the expected 18.75 btc per hour. For example, as of 966584, mempool.space says the mining period is 31 blocks ahead of schedule.

I like to think of it as renting hashrate for a fixed difficulty target, even tho the network hashrate is still variable.

Yifp9SMue5pSx8XdGYRl

Since the lead time for prepayment-to-payout seems a bit low, all you're getting is a guaranteed payout. I guess that this means that you are simply getting FPPS-like payments for yourself where your client is taking the PPLNS risk? Is that the thing? You're basically repackaging (selling) a risk derivative?

are outages part of the risk package you sell?

How are you going to ensure for your client that you're going to be able to deliver? What kind of uptime SLA are we talking? Since the rent period is bound to a retarget period, it's not like you can just run it longer as the retarget may break profitability calculations. Refund downtime? Tough outcome in PPLNS.

bitcoin_Mining

Prepay for 14 days of Ocean hashrate that pays out straight to your own address?

2 questions:

#### what is in it for you as the provider? 

If I look at [your screenshot](https://stacker.news/items/1567571/r/optimism?commentId=1567870), that math means that:

1. You got 1.3M sats, but
2. You could have gotten more (because break-even for your client is about 65% into the contract period), so that
3. Technically you're losing sats. And not just any sats, but clean untraceable non-KYC coinbase sats paid directly from Ocean

Since the lead time for prepayment-to-payout seems a bit low, all you're getting is a guaranteed payout. I guess that this means that you are simply getting FPPS-like payments for yourself where your client is taking the PPLNS risk? Is that the thing? You're basically repackaging (selling) a risk derivative?

#### are outages part of the risk package you sell?

How are you going to ensure for your client that you're going to be able to deliver? What kind of uptime SLA are we talking? Since the rent period is bound to a retarget period, it's not like you can just run it longer as the retarget may break profitability calculations. Refund downtime? Tough outcome in PPLNS.