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Can You Mine HYDRA? (Guide and Alternatives)

Hydra, according to their website is “a permissionless, inflationary, proof-of-stake blockchain with fixed fiat transaction fees and a unique burning mechanism on generated transaction economy.”

What does that mean? Let’s look at HYDRA, how it works, how to mine it, and get it.

Can You Mine HYDRA?

You can do mine HYDRA by becoming a node in the HYDRAChain network. Becoming a node is relatively easy. Just set up your staking wallet correctly for HYDRA, and you’re good to go.

To mine HYDRA, stake your current HYDRA to secure the network from 51% attacks and help validate new transactions. Every time you validate a transaction, you mine a new block for the HYDRA blockchain.

At the time of this article, every block mined could yield up to 16 HYDRA (or more, since the rewards grow over time). 

The more HYDRA you stake, the more blocks you mine in a given period. That also means more rewards for you because of compounding.

If you want to know how long it takes to mine a new block, use a Staking Calculator provided by your staking provider or the Hydrachain website.

Also read: Can Terra Luna Be Mined?

What is Hydracoin Used For?

HYDRA has four main advantages:

  1. Protection against inflation driven price degradation
  2. Resolve Unpredictable Transaction Fees
  3. Environmental and Economic Sustainability
  4. Establish a Truly Shared Economy

Protection Against Inflation-Driven Price Degradation

HYDRA uses a unique model to solve the total supply problem. The Hydrachain uses unique inflationary and deflationary mechanics that work in parallel.

That way, the actual adoption of HYDRA determines its total supply in the market.

What does that mean?

  • Inflationary — If the transactional economy is weak, inflation dominates the growth phase of the chain. As a result, you receive subsidies as a node until transactions on the chain increase again.
  • Deflationary — If transactions increase, it causes deflation within the chain, reducing the supply of HYDRA and reverting the rewards from the growth phase. That means you’re guaranteed a predictable income for being a node. It also ensures maximum security to the funds of Hydrachain users. 

These mechanics ensure you won’t have to worry about halving or the price of HYDRA after halving.

Instead, the total supply of HYDRA will directly represent the actual usage of the chain. Besides making it easy and transparent to interpret the total supply of HYDRA, it will also eliminate speculation.

Resolve Unpredictable Transaction Fees

If you’re a blockchain business, you understand one thing: Without a clear picture of transactional costs, you won’t know whether your business is viable or not. 

Since Ethereum and Bitcoin costs depend on an auction mechanism that lies beneath the mining process, you can’t tell how much they’ll require in the future to support the blockchain.

HYDRA chain makes gas costs predictable using a governed and stable gas price protocol to combat this problem. As a node, you participate in a vote to determine the gas price, and the chosen price is bound to its equivalent value in fiat currency. 

An Oracle that monitors all exchanges that trade HYDRA coins then governs the fiat rate. That leaves you with a fixed price per transaction, regardless of the HYDRA rate.

Environmental and Economic Sustainability

Hydrachain uses inflation-based block rewards that coin holders vote on through a democratic protocol. That way, holders have a higher incentive to stake their coins while ensuring the security of the blockchain. 

These rewards also make the chain economically sustainable. 

Besides that, HYDRA also avoids the massive energy waste and environmental degradation caused by the Proof of Work mechanism. 

By using the Proof of Stake consensus model, HYDRA removes the calculations needed to mine coins and reduces the computing workload required to sustain the blockchain. That reduces its environmental footprint to near zero.

Learn more: Is Litecoin Eco Friendly?

Establish a Truly Shared Economy

How do you reward people who create value in the Hydrachain ecosystem? Easy. The protocol reimburses your transaction fees if you create tokens in the HYDRA blockchain. 

The more transactions you conduct using Hydracoin, the higher your share of each transaction will be.

This share can range from 0 to 50%, depending on a democratic vote by the nodes. That makes HYDRA a truly shared economy.

Unlike other blockchains, HYDRA rewards you on all levels for the value you create. Why is this important? Because it takes the gamble out of the rewarding process. You’re guaranteed a return for keeping your transactional activity within the network. 

How to Get HYDRA

You can get HYDRA in one of several ways. Here they are:

  • Buying HYDRA
  • Mining
  • Airdrops

Buying HYDRA

You can purchase HYDRA on any Crypto exchange that offers it. A great place to start would be the CoinMarketCap website, where you’ll find the price and a list of purchasing options and the currencies you’ll find it under.

Mining

Staking your crypto to secure the Hydrachain network and validate transactions is another way to get HYDRA. The network rewards all the nodes with newly minted HYDRA for their services.

Airdrops

Another way to gain HYDRA is to receive an airdrop for holding HRC-20 LOC tokens in your HYDRA wallet.

You can also receive airdrops for other services like tweeting, blogging, or posting videos to market the Hydrachain.

What Alternative Coins Can You Mine?

There are plenty of alternative coins you can mine apart from HYDRA. Here are some of them:

  • Ethereum Classic (ETC)
  • Zcash (ZEC)
  • BItcoin Gold (BTG)
  • LiteCoin (LTC)
  • Monero (XMR)

Learn more: Why Is Kava Staking So Popular?

Is Staking Better Than Mining?

In the case of HYDRA, staking is the same as mining. By staking your HYDRA, you participate in mining new HYDRA. 

From a general perspective, the benefits of staking and mining will vary from crypto to crypto. Some coins offer more benefits for staking, while others provide more for mining. 

Best Coins to Stake

Here are some excellent choices for coins to stake today:

  • Ethereum 2.0 (ETH)
  • Terra (LUNA)
  • Polygon (MATIC)
  • Binance (BNB)
  • Algorand (ALGO)

Final Thoughts

HYDRA presents an exciting opportunity for users and businesses to make a consistent income from participating in their blockchain.

Its inflationary and deflationary mechanism makes it an attractive solution among cryptocurrencies. Want to try it out?