May 3, 2020 08:30 UTC
May 3, 2020 at 08:30 UTC
Binance Pooling Up Mining Game
In the current week, the launch of Binance Pool, a mining platform is one of the world’s largest cryptocurrency exchanges. Changpeng Zhao, CEO of Binance confirmed the announcement about the new mining pool as the bridge between financial services and traditional mining. The lowest fees in the market suite of Binance’s financial products are considerably the major selling points meant to lure miners.
The news circulated about how big a crypto company can get before the community is justified in throwing the dreaded “c-word”. For Bianance, criticism has been scaling up lately. Even before the launch of the mining pool, the company faced a few controversies by dominating the field of crypto data aggregating with the acquisition of the industry’s favorite token price hubs, CoinMarketCap.
The newly published Smart Chain by Binance came up with potential criticism in part of its governance mechanism’s alleged proneness to centralization.
Gone are the days when crypto experts and the users were running a productive mining operation from their own garage, using a repurposed antiquated PC. The spikes in market capitalization and Bitcoin’s popularity have majorly driven mining difficulty through the roof. The hardware arms race and leverage to application-specific integrated circuits. Also they were rendering individual home-based mining.
In terms of any block rewards, miners were majorly driven to their computer powers in pools and diving up the spoil to personally contribute for the hash rate. Moreover, to the electricity costs and hardware, some mining pools there are fees associated with participation.
Crypto exchanges have gained a lot from entering into the mining scene. The hallmark of an exchange-powered pool states that rewards are sent directly to the participants apart from any individual miners. The trivial distinction makes a world of difference that can be explained in one word which is “liquidity”.
Adam Traidman, CEO and Co-Founder of BRD drops a statement that apart from obvious benefits, such as increasing decentralization of mining and revenues exchanges are getting into mining liquidity for the market. Depending on the external miners and other sources for this have created trouble in several cases because of the lack of adherence to existing liquidity contracts during times of hyper volatility.