Big thanks to Flavien from Coinprism for this blog!
The GetHashing cloud mining community used Coinprism last week to crowd fund mining hardware, by issuing a colored coin asset called GHX. As you can read from the asset description, each coin is backed by 10 GH/s worth of mining power and sold for a value of $4.20. The revenue generated by mining will be distributed back to the coin holders, on the blockchain, on a daily basis. GetHashing even goes one step further, and offers the option to receive a mining unit for 115.5 coins.
The objective for GetHashing was to sell up to 25,000 GHX in the first batch, for approximately $100,000. Not only did GetHashing reach their goal, but they actually sold out the first batch in less than a week. The GHX coins can now be freely exchanged on the Blockchain.
The decentralized model allows the investors to cloud-mine without having pay fees to a middle-man, while still benefitting from economies of scale.
GetHashing used the “virtual vending machine” functionality on Coinprism. Users had to send Bitcoin to a special address, the vending machine then dynamically issues the right amount of GHX coins, depending on the incoming amount.
The vending machine is very economical as the only fees paid are the miners fees. Also, it is secured against double spends, even with zero confirmations.
GetHashing will be able to use the full extent of the suite provided by Coinprism, such as “dividends” (to send mining revenue to the addresses owning GHX coins), and even voting on the blockchain. Users can also store and trade their GHX coins on their phone, using the Coinprism mobile wallet.
The simplicity and stability of the Open Assets protocol makes it a solid foundation for building virtual asset based services.