Binance is an international cryptocurrency exchange, its CEO Changpeng Zhao also known as CZ has shared some plans concerning the firm. He arranged an ‘ask me anything’ session recently where he talked about the expansion of Binance in Dubai. During the session, he shared his daily routine and roadmap for Binance’s Dubai wing.
For an answer to the question, CZ claimed that Binance has not taken up any stakes in Bitcoin mining. At the same time, Binance does not have any plans to venture into Bitcoin mining.
He maintained that the main reason for refraining from performing Bitcoin mining is because it takes special hardware and other skills to use it. He also claimed that many competitors in the mining segment are already established in their place.
Binance will Keep Offering Integration Services for Bitcoin Miners
Binance CEO has maintained while Binance does not have any plans to start Bitcoin mining, the platform will continue the Binance Pool. He said that Binance Pool helps in maintaining liquidity for Binance and covers operational costs.
This pool assists Bitcoin miners with integrated services but it does not perform mining on its own. He also claimed that mining is important and it is not the main focus of Binance exchange.
It is worth noting that Binance Pool is the 5th biggest Bitcoin pool that generates around 28.96 EHashes per second. This rate consists of around 7.71% of the total Bitcoin network hash in the current month.
Meanwhile, the commission for Binance Pool services is charged at around 7.01% which is considered to be among the lowest as per BTC.com. The pool has been rated as top 10 economic ventures by BTC.com rankings.
Binance has maintained that it is currently working on integrating the Lightning Network. It is worth noting that it is a layer-2 solution for Bitcoin that enables faster transactions at cheaper rates for the Bitcoin blockchain.
CZ claims that in the existing form, LN cannot be added to the Binance exchange on account of security issues. To maintain the security of the safe keys, Binance uses separately created Bitcoin addresses. However, with the existing LN structure, it will become impossible.
On the other hand, Binance claimed that it will start testing Lightning integration for smaller transactions. He also claimed that all other crypto exchanges are going to integrate LN in the future. He talked about the development of the Web3 sector in Dubai.
He has maintained that there are around 700 employees in Dubai working for Binance. Meanwhile, Dubai has become a center for Web3, blockchain, and crypto development.
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