Binance has announced the official launch of first Binance Pool service and another expansion into the burgeoning cryptocurrency mining sector. Binance Pool, the leading cryptocurrency exchange says, will supplement the ramp by offering Proof-of-Work (POW) and Proof-of-Stake (PoS) services for a variety of coins and tokens.
Binance Pool To Offer Bitcoin Mining
Few days back Binance launched beta version of the Binance pool reporting its first mined bitcoin block. As reported by official Binance twitter handle the pool will begin by offering Bitcoin mining and pay users through the popular Full Pay-Per-Share (FPPS) model.
#Binance is excited to announce the launch of Binance Pool, offering Proof of Work (PoW) and Proof of Stake (PoS) services for a variety of coins and tokens.
— Binance (@binance) April 27, 2020
In this arrangement, Binance will temporarily cater for the transaction fee reward whenever the pool successfully mines a block until June 1, 2020.
At block height 627843, BTC.com the transaction fee reward was 0.17590813 BTC or $1,359. This is the fee that Binance Pool will pay until June 1, 2020.
In a statement, the exchange said:
“Binance is excited to announce the launch of Binance Pool, offering Proof of Work (PoW) and Proof of Stake (PoS) services for a variety of coins and tokens. Binance Pool’s first product offering will be Bitcoin mining, using a FPPS payment method.”
This new product from Binance is a boon for the Bitcoin and the cryptocurrency mining space. Besides, their entry is also timely. As evidence reveals, mining cryptocurrency, especially Bitcoin, is expensive not only for the environment but for miners who have to invest in mining gear and later pay for cooling, noise attenuation, and electricity charges whenever gear is turned on.
A mining pool is nothing more than a pool of cryptocurrency miners joining their computational resources, or hash rate, increasing their chances of finding a block and earning rewards. BTC being the most valuable is sought after but because of ASICs, competition is cut-throat.
Binance’s Increased Attention to Crypto Mining and Bitcoin
The announcement from Changpeng Zhao(CZ) and Binance reveals how aggressive they are and their determination of creating a closed loop where they services are encapsulating.
Already, Binance is not only the leading exchange by trading volumes, but in a scene that regulators claim is manipulated, Binance continue to attract users. In a report, Binance and a couple of US-based exchanges posted true volumes and activities such as wash trading were non-existent.
Although they have been hacked, the presence of a SAFU fund instills confidence and covers for losses whenever such an unwanted event occurs.
Notably, when Binance was hacked, the exchange remained transparent about the hack, admitting failure and infiltration before reassuring victims that their funds will be reimbursed.
Earlier this month, Binance announced their acquisition of CoinMarketCap (CMC) for $400 million.