Binance, the major cryptocurrency exchange, has launched “Binance Pool“, its mining pool, dedicated to empowering miners and the global crypto mining industry.
On April 27, it has been reported that the pool will operate with zero fees until May 31, after which the rate will be set at 2.5%, as the press release for the pool states that large miners can contact Binance to negotiate an extension of the fee-free period.
However, with Binance Pool, the team aims to establish a comprehensive platform for miners, which will bring more possibilities to the mining industry by bridging traditional mining and financial services.
Binance Pool offers users lower fees and more comprehensive services to increase opportunities and enable miners to earn more, as it connects miners to Binance’s staff of financial products, including Binance Futures, Spot & Margin trading, Binance Lending, and Binance Staking.
It has been analyzed that approximately 15 of Binance’s more than 1,000 employees work full-time towards the pool’s operation. Also, Binance Pool supports both Proof-of-Work (PoW) and Proof-of-Stake (PoS) mining mechanisms.
Major cryptocurrency exchange Binance has launched a mining pool, but the crypto community fears centralization https://t.co/QhQ3g6Ctzn — Cointelegraph (@Cointelegraph) April 27, 2020
The platform is first launching with a Bitcoin mining service, with support for more cryptocurrencies and more customized services to come.
Lisa He, the head of Binance Pool, stated:
“We aim to establish a comprehensive platform for miners that will bring more possibilities to the mining industry by bridging traditional mining to financial services.”
Likewise, Changpeng Zhao (CZ), the founder and CEO of Binance, said:
“As an integral part of the global crypto market, empowering miners will therein enable significant growth and scale in the larger industry.”
CZ tweeted, on April 24, that Binance Pool had mined its first block.
The first block ever mined by the @Binance Mining Pool. Still in closed-beta. Going live soon. As always, LOWEST FEES of any mining pool. If you wish to join, email: poolvip@binance.com pic.twitter.com/uewbRM6UIy — CZ Binance 🔶🔶🔶 (@cz_binance) April 24, 2020
It has also been analyzed that Binance Pool has received mixed responses from the crypto community, with some commentators, who expressed their concerns that Binance’s pool will result in a further centralization of Bitcoin hash rate among a small number of pools.
However, Lisa He argued that the launch of Binance Pool will comprise a decentralizing force upon the mining sector.
She said:
“In 2018, the mining pool of a mining machine manufacturer owned nearly 51% hashing power of the whole Bitcoin network, and the security of the Bitcoin network was doubted.”
Also, she added:
“With industry players like Binance continuing to enter the mining space and contribute computing power to the industry, the mining industry is actually getting more decentralized than it was two years ago. The largest pools have less than 20% of the computing power of the whole network, and the assets on the Bitcoin network become more secure.”
As per the report, Binance Pool offers the following benefits:
Lowest fees in the market: Exchange-powered mining pools offer lower fees in general. With Binance Pool, we are driving expenses lower to offer the most attractive service in the market.
Global tech expertise: Right from its launch, Binance Pool is led by the team of seasoned professionals, with top-notch operating expertise and know-how of the latest mining technologies and equipment.
More decentralized mining field: The launch of Binance Pool represents the entry of one more competitor to the hashing power of Bitcoin and other cryptocurrencies.
More secure blockchain networks: The further decentralization of Bitcoin mining also results in more difficulty when it comes to attacking the Bitcoin network.
Comprehensive financial services: Now, you can connect crypto mining to the most wide-reaching product suite of crypto financial services in the market.
Better services for miners: Binance is synonymous with constant enhancement, and our dedicated team of mining pool experts will deliver various updates on Binance Pool to turn it into the most rewarding mining pool in the market.
Protection to miners regardless of the market: We are committed to fully leveraging the global influence of Binance to connect the mining ecosystem to industrial resources and provide miners with financial services such as low fees and lending services with low loan-to-value ratios.
Support for both proof-of-work and proof-of-stake mining mechanisms: Binance Pool will begin with a Bitcoin mining service, and we will expand into more cryptocurrencies soon.
As Binance Pool is launching with a Bitcoin mining solution and a special offer of zero-fee starting rate for Bitcoin miners for the first month, sign up here to avail of this promo.
Also, all new and existing Binance users can access Binance Pool directly from Binance.com, with fee rates under 2.5%.
For more information on Binance Pool, visit pool.binance.com.
If you want to know about VIP program, e-mail at poolvip@binance.com.
Source: Cointelegraph | Binance