Decentralized derivatives exchange SynFutures reportedly disclosed details regarding a new solution dubbed Bitcoin (BTC) Hash Rate Futures, utilizing its mining difficulty for a base to open long or short positions. 

Specifically, being referred to as entirely decentralized hash rate futures, SynFutures’ freshly designed solution will reportedly enable trading across Bitcoin mining difficulty via Wrapped BTC (wBTC). 

The hash rate and mining difficulty are reportedly two fundamental mechanics for Bitcoin, which is turning more and more preferred with the miners’ exodus, during the current crackdown in China. 

The Bitcoin network will reportedly need for readjustment of mining difficulty across every 2,016 blocks against the Bitcoin hash rate — the amount of computing capability devoted to mining.

This two-way mechanism will reportedly help make constant block time available – the required period of time to locate each new block during the process of Bitcoin mining. 

Per SynFutures, the Hash Rate Futures – currently in the closed alpha phase – was reportedly developed via creating an oracle to validate Bitcoin block headers in a direct manner and extract the mining difficulty. 

Every futures contract is reportedly a representative of the expected block mining reward in BTC, for difficulty at a given difficulty level.

It would be possible for Miners to short the Hash Rate Futures, to hedge against the risk of mining difficulty shooting up, or long electricity futures to control the power cost.

“There hasn’t been a derivatives product targeting mining difficulty, which is vital to a miner knowing how much return their rigs are going to generate. With Hash Rate Futures, we’re filling in this gap for miners.” SynFutures founder and current Head Rachel Lin reportedly remarked.