Bitcoin Mining will be further decentralized and will get a new player – Binance. Probably the best-known stock exchange has today officially announced its own Bitcoin Mining Pool. In addition, Binance plans to make the mining offer available for other cryptocurrencies. The Binance Pool will not only cover Proof-of-Work (PoW) but also Proof-of-Stake (PoS) cryptocurrencies. This gives users of the Binance Exchange further opportunities to participate in the crypto ecosystem.
Binance launches Bitcoin Mining Pool
A few days ago Binance started with its Bitcoin Mining Pool and has already recorded the first block found. However, the exchange plans to pay out the various miners who have joined the Bitcoin Mining Pool not directly via the blockchain, as is currently the case, but via the personal accounts on the exchange itself. Binance uses the well-known Pay-Per-Share (FPPS) model for this purpose.
In the first month, Binance will support the miners who join the new Bitcoin Mining Pool. The Exchange does not charge any fees and will therefore let the miners operate free of charge under the umbrella of the Mining Pool. This offer will only run until July 1, 2020.
In a statement on Twitter the exchange said
Binance is pleased to announce the launch of Binance Pool, which offers Proof of Work and Proof of Stake for a variety of coins and tokens. Binance Pool’s first product offering will be Bitcoin Mining, using an FPPS payment method.
Exchange establishes its own ecosystem in Crypto Space
The new product from Binance was announced a few months ago. It is mainly an added value for the decentralization of Bitcoin Mining and therefore also for the entire Bitcoin ecosystem.
The entry into Bitcoin Mining comes just before the Bitcoin Halving, which we expect in just under two weeks. With this move, Binance clearly shows that it believes in the future of BTC and wants to position itself in this important field. It also wants to remain competitive in terms of fees and provide an alternative to other Bitcoin Mining pools.
A Bitcoin Mining Pool consists of several independent miners who join together to increase the chances of finding a block. It is similar to a lottery betting pool. Mining Pools have emerged from the increasing competition within the mining industry.
Binance takes every opportunity to expand its product portfolio and provide an all-in-one solution for its customers. The exchange also shows the highest trading volume and an excellent user experience. Furthermore, the exchange made headlines just a few days ago with the acquisition of CoinMarketCap (CMC). The exchange bought CMC for 400 million USD.