Binance recently announced a new pool service for users interested in mining Ether. Many users are concerned about the prominence of the exchange in the growing centralization of the ecosystem.
In recent days, the world’s largest cryptocurrency exchange, Binance, launched a new mining pool. The users of that platform will now be able to mine the Ethereum cryptocurrency using their graphics processing unit (GPU) cards.
The Binance Pool service will incorporate the second cryptocurrency in market capitalization, Ether (ETH), which will thus join Bitcoin. This exchange recently launched a Bitcoin mining pool, which covers the most relevant cryptocurrencies that users can extract with the Sha-256 algorithm.
Initially, the Ethereum pool will not charge anything, but the withdrawal fees will subsequently be 0.5%. Cryptocurrency enthusiasts view this service with concern since Binance plays a leading role in the growing centralization.
Advantages of New Binance Pool
For the launch of its pool, Binance must enter a difficult fight against the Chinese oligopoly. Virtually all of the large Bitcoin mining pools emerged in the People’s Republic of China, except for Slushpool.
Even though Binance is of Chinese origin, the exchange left the country in anticipation of the ban on cryptocurrencies. In 2017, Beijing banned trading in digital currencies. For that reason, all the exchanges in that country had to either disappear or move abroad.
Concerning the pools focusing on mining Ether, the most important altcoin, the competition is notable. However, Binance will use its prestige to consolidate itself in this new space.
Binance will try to attract users to its new pool through a zero-fee program. It will last one month, after which it will begin to charge rates of 0.5%, which still leaves it as a very attractive option.
Some Requirements for the Use of the Service
Ether miners will need to comply with various parameters to start using this new Binance Pool service. First, they must have a Windows or Linux operating system, as well as a GPU card.
This card may be of the NVIDIA or AMD brands of any denomination, as long as it exceeds 4 GB of video random access memory (VRAM). Finally, it must have mining software such as EasyMiner, Ncard, and MinerOS, among others.
According to the Binance website, this new pool service will have a system called Pay Per Share Plus (PPS+). Even though it is one of the most popular payment methods, it is not the only one that mining pools use.
When mining a block, the pool divides the income among those who participate in the activity. At the same time, the earnings from transaction fees accompany the reward. For example, when mining a block, the pool receives 6.25 BTC plus the amount of Bitcoin corresponding to the transaction fees that the network charges.
With this initiative from Binance, there is a rise in concern among the most orthodox crypto enthusiasts. Many see the centralization of the ecosystem by firms like Binance as going against the decentralized nature of cryptocurrencies.
By Alexander Salazar