Binance keeps on announcing new services despite the Coronavirus crisis. The biggest cryptocurrency exchange by trading volume is releasing its own mining pool, called “Binance Pool”.
According to the announcement, the crypto mining platform will be dedicated to empowering miners and the global mining industry across the world. The new mining pool will bring more possibilities for miners by bridging traditional mining with financial services. The crypto exchange plans on merging this platform with their existing services, offering miners lower fees and a more comprehensive service tool capable of increasing their opportunities in a competitive market. Binance Pool will also connect miners to Binance’s suite of financial products, including Binance Futures, Spot & Margin trading, Binance Lending, and Binance Staking.
The Binance Pool will support both PoW (proof-of-work) and PoS (proof-of-stake) mechanisms for mining. Binance Pool will begin with a Bitcoin mining service and will expand into more cryptocurrencies. The platform will also offer great benefits, which include low fees, Binance tech, decentralized mining, secure blockchain networks, financial services, more protection for miners, and more. During the first month, Bitcoin miners will enjoy a zero-fee rate.
Although it sounds great, many community members have expressed their concern towards centralization in the mining industry. This mining pool could easily attract thousands of miners, concentrating Bitcoin’s hash rate among just a few pools. Despite concerns, the crypto exchange argues that Binance Pool will remain decentralized and will actually contribute to taking away power from the biggest pool there is, Bitmain. According to Lisa He, head of Binance Pool:
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… 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.
Binance is strategically announcing this service just before the Bitcoin halving in May. If the same trend from the two previous halvings applies, Bitcoin could easily double in price.