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Binance starts the crypto mining pool, but the crypto community is concerned about centralizing hash performance

April 27, 2020

On April 27, Binance, the big crypto exchange, started his mining pool “Binance Pool”.

The mining pool will operate at zero rates until May 31, after which the rate will be set at 2.5%. The pool press release states: Large miners can contact Binance to negotiate an extension of the fee exemption period.

over 15 of the more than 1,000 Binance employees work full time to operate the pool.

Cross-platform integration

Binance starts the crypto mining pool, but the crypto community is concerned about centralizing hash performanceBinance starts the crypto mining pool, but the crypto community is concerned about centralizing hash performance

Binance Pool supports both Proof of Stake (PoS) and Proof of Stake (PoS) mine mechanisms.

The pool is integrated into the rest of the Binance platformThis allows miners to easily transfer money between Binance Pool and the company’s various platforms, including trading, lending and use.

In conversation with Cointelegraph, the manager of the Binance Pool, Lisa Er said: “Our goal is to create a comprehensive platform for miners that offers the mining industry more opportunities and closes the gap between traditional mining and financial services.“”

Binance’s founder and CEO, Changpeng Zhao, said: “As an integral part of the global cryptocurrency market The empowerment of miners will enable significant growth and the largest scale in the industry“”

On April, 24th Zhao tweeted that Binance had a pool reduced your first block.

The community is cautious about centralizing

Binance Pool has received conflicting responses from the crypto community Some commentators have raised concerns that the Binance pool will further centralize the bitcoin hash rate (BTC) among a small number of groups.

Twitter user ‘HsakaTrades’ tweeted A diagram of the bitcoin hash rate distribution headed: “This hash distribution diagram will shortly be a single color.” Another user wrote::

“It ends very well for Bitcoin, as there will be several mining groups that compete against each other and offer massive decentralization, or … well, I think you can understand the other side of the coin.”

Binance claims to be a decentralized force

In response to criticism, Lisa He argued that the launch of the Binance Pool would represent a decentralized force in the mining sector.

“”In 2018, a mining machine manufacturer’s mining pool had almost 51% of the hash performance of the entire Bitcoin networkand the security of the Bitcoin network has been questioned, “he said, adding:

“As industry players like Binance continue to move into mining and bring their computing power into the industry, it will become more decentralized than two years ago. The largest groups will have less than 20% of the computing power of the entire network, and the Bitcoin network resources will become more secure . “

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