Popular and Top crypto exchange Binance has recently launched its mining pool. However, the community of cryptocurrency is sceptical over the centralization of hashing power.
On 27th of April 2020, Binance, the leading cryptocurrency exchange, launched its mining pool called "Binance Pool."
The pool is basically going to operate under the zero-fee regime until May 31, after which it will set the rate at 2.5 %.
The press release for the same stated that the league miners can now contact Binance to negotiate for an extension of the free-fee period. At an approx 15 of Binance's more than 1000 employees will work full time towards the pool's operation.
Binance Pool will support both Proof-of-stake(PoS) and roof-of-Work(PoW) mining mechanisms. The pool is well integrated and coordinated with the rest of Binance's platform -allowing several miners to easily transfer funds between the pool and the company's various platforms, including lending, trading, and staking.
The Head of the Binance Pool Lisa stated that they aim to provide an exhaustive and comprehensive platform for miners to bring in more possibilities to the mining industry to overcome the lack of traditional mining and convert them into financial services.
Also, chief executive officer of Binance, Changpeng Zhao stated that as an integral part of the crypto market, empowering the traditional miners will be a significant step towards growth in the larger good of the industry.
Community is cautious of centralization
Owing to the launch of the mining pool, Binance Pool has confronted mixed responses from the crypto community. Many of them are of the opinion that this particular move will result in centralization of Bitcoin(BTC) among the small number of pools.
Binance Claims To Be The Decentralizing Force.
In response to the sceptical views, Lisa He stated that with the launch of Binance Pool, this will become the decentralizing force upon the mining sector. With popular industry players like Bitcoin, the mining sector will get to explore the revolution in making. The mining space will get more decentralized than it was years before.