Binance has launched its mining pool, leaving the crypto community concerned about the centralization of hash power.
April 27, 2020 | AtoZ Markets – Binance, the world’s largest cryptocurrency exchange by trade volume, is unrelenting in its rapid expansion drive in the crypto industry. The exchange has officially launched a crypto mining platform dubbed Binance Pool. This is a move that will likely challenge top mining pools in the industry.
Binance CEO Changpeng Zhao (CZ) shared updates about the new mining platform last week Friday, saying that the Binance Pool has been launched in a closed-beta phase with its first block of Bitcoin already mined. The new service is now available to the public.
Binance mining pool goes live
According to a Monday press release shared with AtoZ Markets, the launch of the comprehensive mining platform is part of Binance’s effort to develop the global cryptocurrency mining industry while empowering miners with more opportunities and financial tools.
Binance pool is integrated into the Binance ecosystem. This gives users access to a list of the exchange’s derivatives products, including Binance Futures, Spot and Margin trading, Binance Staking, and others.
Binance pool supports PoS and PoW mining
Furthermore, the new mining pool from Binance also supports both Proof-of-Work (PoW) and Proof-of-Stake (PoS) mining algorithms. The platform, however, will start with Bitcoin mining services. The exchange plans to add more customized services for miners. This will allow them to earn more on the Binance Pool.
The platform offers a rate of up to 2.5% with 0 startup fee for Bitcoin miners from now until May 31, 2020. Both new and existing users on the exchange can access the new service from Binance.com, the company said.
Changpeng Zhao (CZ) commented on the development, saying:
As an integral part of the global crypto market, empowering miners will therein enable significant growth and scale in the larger industry. “With Binance Pool, 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.
Increased competition among top mining pools
Binance is perhaps a practical example of success in the crypto space. Launched three years ago, Binance has managed to become the largest exchange and BUIDLer in the crypto industry.
Undoubtedly, Binance’s entrance into the mining sector is a challenge for top mining pools due to its massive user base. At the time of writing, Binance Pool has already generated an estimated hash rate of 1.74 EH/s. The platform also has more than 40,000 active workers.
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