Crypteconomy powerhouse Binance has officially entered the competitive bitcoin mining sector.
On the morning of April 27th, the renowned crypto trading platform announced the launch of Binance Pool , a mining venture that integrates both proof-of-work and proof-of-stake mechanisms.
The inaugural venture of this service is a bitcoin mining pool, which is already operational and ranks as the 12th most significant contributor, accounting for 1.22% of the Bitcoin network's hashrate as per BTC.com at the time of writing. Binance has plans to introduce further pools soon.
In a separate and more in depth introduction post , Binance disclosed that miners could readily utilize their crypto earnings within the platform's expansive services portfolio:
We’re building Binance Pool as a comprehensive miners' platform. It’s designed to merge traditional mining with financial services, thereby opening up new opportunities. By utilizing the exchange’s benefits, Binance Pool reduces costs and provides extensive services, enabling miners to boost their earnings. It connects miners with Binance’s array of financial services, including Futures, Spot & Margin trading, Lending, and Staking.
For its initial foray into bitcoin mining pools, Binance is employing the Full Pay-Per-Share payment model. This approach ensures that miners not only receive the bitcoin block reward for discovered blocks but also the accompanying transaction fees.
This launch follows a hint from Binance CEO Changpeng Zhao about the first block mined by Binance Pool on Friday, April 24th.
https://twitter.com/cz_binance/status/1253675204280061953
This move mirrors actions by Binance’s formidable competitors, such as Huobi and OKEx, which established their own mining pools over the past couple of years.
According to BTC.com, Huobi and OKEx share the 7th position among the largest bitcoin mining pools. Observers are keen to see if Binance Pool can leverage Binance’s extensive global access to surpass its direct competition.
Lots Going On Around Binance Lately
Binance has recently been making waves with significant announcements. Besides Binance Pool, the platform also debuted a social payments app named Bundle aimed at the African market.
“We crafted Bundle with the tech-savvy African user in mind, considering they prefer financial services accessed via mobile apps rather than through traditional banks,” Bundler founder Yele Bademosi mentioned during the launch.
In addition, earlier this month, Binance introduced bitcoin options trading within its mobile applications. During April, the company confirmed its major acquisition of CoinMarketCap and announced Binance Smart Chain, akin to Ethereum’s smart contract framework, utilizing the BNB coin.
In broader terms, the Binance Smart Chain (BSC) venture is perhaps the most groundbreaking within Binance’s endeavors this year. Alongside Binance Pool, it highlights the exchange’s comprehensive strategy in the crypto sector. As Binance elaborated upon introducing the project:
“The BCDC proposes a parallel blockchain to the existing Binance Chain, termed Binance Smart Chain. It will maintain the original blockchain's high efficiency while simultaneously allowing smart contracts, offering a user-friendly environment for Ethereum Virtual Machine compatibility with Binance Chain.”
Such initiatives, in one way or another, are positioning Binance as a potent entity in the cryptocurrency landscape.
