Far from the current euphoria around the performance of Bitcoin (BTC), Binance (BNB) continues to develop its business by further diversifying its products. Last April, the crypto-exchange launched a mining pool dedicated to bitcoin with great success. It has therefore just repeated the same initiative, this time choosing the largest altcoin by market capitalization, namely ETH. To convince the masses to join the adventure, the exchange opted for very competitive income costs. Explanations.
A first month free of charge followed by a commission of 0.5% on income
For the first month of the adventure, namely from November 12 to December 12, Binance decided to do not charge any fees from miners wishing to join the mining pool. Once their participation has been acquired over this period, the exchange has planned to receive a minimum commission of 0.5% on their income. A good deal compared to the prices charged by competitors such as SparkPool or Ethermine which are in the order of 1%. Participation in the mining pool is however subject to the use of the operating system Linux or Windows.
Minors must also have an NVIDIA or AMD graphics card of at least 4G and mining software such as HiveOS or Easy Miner. In fact, Binance’s Ethereum mining pool will be similar to the bitcoin mining pool earlier this year. Both indeed use a similar system called or Full Pay Per Share or FPPS. It will mean that Binance will donate to minors the reward for mined blocks, but also all the transaction costs that go with it.
Promising results with the bitcoin mining pool
With its function Smart pool, the bitcoin mining pool of Binance gives participants the opportunity to get the most out of their hashrate. They can in fact choose, depending on the case, to mine the most profitable of the three supported assets. These include the Bitcoin, Bitcoin Cash or Bitcoin SV. Looking at the online monitoring of the distribution of Bitcoin mining pools available on BTC.com, it shows promising results for the mining pool of Binance.
The latter thus held 9.4% of Bitcoin’s total hashrate in the first week of November. It would nevertheless be pretentious to assert that these results are already Binance Pool a benchmark alongside market leaders such as F2Pool or Poolin. While waiting to get there, Binance can be happy to be on par with the mining pool of the Huobi exchange
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The decision of Binance to get into ethereum mining comes as a surprise as it prepares to move from proof of work to proof of stake by next month. It is rumored that the exchange is preparing to offer miners an ETH 2.0 staking service once the migration takes place.