Binance launches the beta version of its mining pool and offers the lowest fees amping up the competition in the space according to their CEO. Changpeng Zhao, the CEO of Binance tweeted,
The first block ever mined by the @Binance Mining Pool. Still in closed-beta.
Going live soon. As always, LOWEST FEES of any mining pool.
The confirmation for the Binance mining pool was made at the start of the month by Zhao, as media reports on its working began circulating around the web.
Currently, the average mining fees on popular mining pools is around 0-4%, it varies according to the mining rewards and payment schedule. Currently, the distribution in mining pools is led by F2Pool, BTC.com, Poolin and AntPool.
Crypto exchanges which host mining pools include Okex and Huobi. While competition is good for any business, complete dominance by a single entity leads to monopoly and decentralization. Loomdart (alias), a crypto analyst tweeted on the launch by Binance by adding,
This either ends super good for bitcoin with multiple competing mining pools offering mass decentralisation or…. well I guess you can figure out the flipside of the coin ._.
The mining pools will now look to offer lower fees and more efficient withdrawals.
Like Okex, Binance will also look to add support for other cryptocurrencies apart from Binance which work on PoW (Proof of Work). On the value proposition of the mining pools, Alysa Xu, Chief Strategic Officer of OKEx, told us,
We believe there would be a surge on-demand on miner-oriented financial products in which would assist miners to manage their price risk and expected cash outflow. Those products are expecting to hedge on derivatives market like OKEx – hence we expect a new type of flow to the market as a whole.
Binance already offers staking, lending and borrowing for a variety of cryptocurrencies including Tezos, EOS, NEO, BNB, etc. The addition of PoW pool will also help in improving the crypto liquidity of the exchange.
Given, Mining is a medium to large scale business, how do you think it will affect the mining space? Please sharer your views with us.