Ore Token Mining Heats Up on Solana Network, But Technical Challenges Arise

Solana users are currently competing for the'mining' of the Ore token, a digital asset that is of great interest due to its unique distribution mechanism.

Solana users are currently scrambling to ‘mine’ the Ore token, a digital asset that has garnered significant attention due to its unique distribution mechanism.

Designed similarly to a proof-of-work (PoW) mechanism like Bitcoin, Ore utilizes a computational puzzle as a method of distribution. However, unlike Bitcoin, Ore is actually a regular token on the Solana network.

Since the launch of its latest version on Tuesday, Ore has clocked in over 4 million transactions within 17 hours, which at its peak, accounted for up to 16% of the total transactions on Solana’s network. This phenomenon not only highlights the excitement within the crypto community, but also showcases how gaming can contribute to the rapid adoption of blockchain technology.

This enthusiasm, however, comes at a steep price. Ore miners are willing to spend thousands of dollars in SOL tokens, Solana’s native currency, just to ensure their transactions get processed and they receive a portion of Ore’s supply. Some miners have even made thousands of dollars from selling Ore, which is currently trading at around US$450 (around Rp7.2 million) per token on decentralized exchanges.

Behind this excitement, problems have also surfaced for some users, with around 8% of all Ore mining transactions reported to have failed, indicating technical difficulties in the process.

Even so, this is not the first time Ore has caused a stir on the Solana network. When it was initially launched in April 2024, the spike in Ore transactions had briefly overwhelmed Solana’s network, delaying other transaction processes. This issue, however, seems to have been addressed in this launch.

According to information from DL News, Ore, which is led by a pseudonymous developer known as Hardhat Chad, has a maximum supply of 21 million tokens, mirroring that of Bitcoin.

With no venture capital backing, Ore emerged as the winner of Solana Renaissance Hackathon last May, taking home a prize of US$50,000 (Rp806 million).

While Ore is touted as an internet native money, its biggest challenge may come from competitors like the USDC stablecoin, which is already well-established in the market.

Solana users are advised to stay vigilant about the risks and costs that may arise from this Ore mining activity, considering the high technical challenges and volatility in the market.

In related news, Ore has also attracted the attention of international investors, with some hailing from the US and Europe, who are interested in the potential gains that can be had from mining and trading Ore.

Moreover, data from CoinMarketCap shows that Ore’s trading volume has reached up to US$10 million (around Rp161 billion) over the last 24 hours, placing it among the top tokens on the Solana network.

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