Binance (BNB) Has No Plans to Enter Bitcoin (BTC) Mining, CZ Says
Binance CEO Changpeng Zhao, colloquially known as CZ, shares his views on crypto in Dubai, Bitcoin (BTC) mining and challenges of Lightning Network integration
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In his recent “ask me anything” session, Changpeng “CZ” Zhao, prominent Bitcoiner (BTC) and CEO of world’s leading crypto ecosystem Binance (BNB) discussed his daily routine, Web3 prospects in Dubai and some details of Binance’s road map.
Binance (BNB) is not going to start mining Bitcoin (BTC), CEO says
Largest global cryptocurrency exchange Binance (BNB) is not involved in the cryptocurrency mining sphere and does not plan to be. Such decision was taken due to the very special character of Bitcoin (BTC) mining as a business. Also, it requires too much hardware and expertise in using it, CZ says.
If you prefer to read/scan. Highlights From CZ’s May 31 AMA on Twitter Spaces | Binance Blog https://t.co/1LcZ0GM5gD
— CZ 🔶 Binance (@cz_binance) June 3, 2023
As such, there are many competitors in the mining segment that have more of an advantage than Binance (BNB). At the same time, it will keep operating its mining pool, which should not be confused with hash mining itself:
We’re happy that miners use our pool and have Binance’s liquidity to help cover their operational costs. We provide miners with an integrated service but don’t do the mining itself. I believe mining is very important, and there are many misconceptions about it, but it isn’t our core expertise
Binance Pool is the fifth largest pool in Bitcoin (BTC). It is responsible for producing 28.96 EHashes per second or roughly 7.71% of net Bitcoin (BTC) network hashrate as of June 2023.
Its 7.01% commission per block is actually the lowest one among the top 10 mining pools, as per BTC.com statistics.
Eventually, Lightning Network will be supported by all exchanges
Besides Bitcoin (BTC) mining ambitions, Binance’s CZ shared his take on the integration of Lightning Network, a second-layer solution for Bitcoin (BTC) based on payment channels.
He admitted that LN cannot be integrated into Binance’s tooling “as is” due to security reasons. Namely, to ensure safe keys management, Binance (BNB) utilizes pre-generated Bitcoin (BTC) addresses, which is impossible in LN. As a result, Binance (BNB) is going to start testing Lightning integration with small amounts of money.
Eventually, this instrument will be integrated by all exchanges, CZ says. With LN, Bitcoin (BTC) transactions become faster and cheaper compared to ones sent directly via the L1.
Also, CZ highly praised the progress of the Web3 segment in Dubai and admitted that his firm has 700 employees in the city and counting. Dubai established itself as a major innovative hub for Web3, crypto and blockchain, Binance CEO added.
