Binance launches its own mining pool
The Malta-based cryptocurrency exchange announces the project just before Bitcoin halving
Binance, the prominent cryptocurrency exchange based in Malta, has launched "Binance Pool", its own mining pool.
A collection of cryptocurrency miners, a mining pool allows participants to combine their computational resources over a network. The tokens earned as a result of this collective effort are shared in proportion to each individual’s contribution.
The announcement comes only days before what is arguably the most anticipated cryptocurrency mining event of the year, the third Bitcoin (BTC) halving.
Hoping the event will increase interest in cryptocurrency mining more broadly Binance will operate the pool without any fees until the beginning of March. Fifteen full-time employees are thought to be working on the project, which will support both Proof-of-Stake (PoS) and Proof-of-Work (PoW) mining.
Changpeng Zhao, the CEO of Binance, stated: “As an integral part of the global crypto market, empowering miners will therefore enable significant growth and scale in the larger industry.” The exchange’s founder later observed: “Mining costs electricity, but not fees.”
Binance Pool’s first product offering will be Bitcoin mining, using a Full Pay Per Share (FPPS) payment method. This method shares some of the eventual transaction fees as well as the regular block reward.
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