Leading cryptocurrency exchange, Binance has taken another step to expand its revenue sources, and potentially increase its growing authority in the crypto industry.
According to a Friday update by CEO, Changpeng Zhao (CZ), Binance has finally launched the Binance mining pool in closed-beta phase and mined its first block of Bitcoin (BTC) transactions. Once the beta-phase is complete, the exchange provider hopes to formally launch the new service and teased a mining pool that would go on to offer the lowest fees in the industry.
What Are Bitcoin Mining Pools?
A Bitcoin mining pool is a term that defines a group of miners who agree to contribute mining hash power towards a Bitcoin mining operation and then share the block rewards afterwards in line with the amount of hash power contributed.
The approach favours average miners who despite hardware cannot mine a block of Bitcoin transactions with only the hash power they generate. By plugging into a mining pool, the group of miners led by the pool owner can generate superior hash power and record more success against competitors.
Meanwhile, Binance decision to venture into the crypto mining business just before Bitcoin’s halving was first revealed by Changpeng Zhao at the start of April, with the CEO reporting then that the new service would be added to their growing suite of finance products.
Time will now tell which other cryptocurrencies the Binance Mining Pool will support for miners, although one wouldn’t be wrong to expect Binance to dominate yet another sector in the crypto industry.
The soon to be rolled out mining pool also represents another step in the right direction, with Binance earlier this month sealing a reported $400m acquisition of popular crypto data tracking site, CoinMarketCap.