- The unique nature of Bitcoin (BTC) mining as a sector prompted this choice as per CZ.
- CZ of Binance also discussed the exchange’s plans to use Lightning Network.
Binance CEO Changpeng Zhao (CZ) recently had a “ask me anything” session in which he answered questions about his day, the future of Web3 in Dubai, and Binance’s plans.
Binance, the largest cryptocurrency exchange in the world, has no interest in or plans to enter the cryptocurrency mining industry. The unique nature of Bitcoin (BTC) mining as a sector prompted this choice. CZ adds that there is an excessive need for specialized gear and training to make it useful.
As a result, Binance faces stiff competition from a crowded mining industry. Similarly, it will maintain running its mining pool, which is distinct from hash mining. When it comes to Bitcoin (BTC), Binance Pool is the sixth biggest pool. As of June 2023, its hashrate of 28.96 EHashes/s accounts for about 7.71% of the total Bitcoin (BTC) network hashrate.
Banking on Lightning Network
According to data provided by BTC.com, among the top 10 mining pools, it has the lowest fee per block at 7.01%. In addition to discussing his Bitcoin (BTC) mining goals, CZ of Binance also discussed the exchange’s plans to use Lightning Network, a payment channel–based second-layer solution for Bitcoin (BTC).
After explaining the security concerns, he conceded that LN could not be implemented “as is” into Binance’s infrastructure. Binance uses pre-generated Bitcoin (BTC) addresses for secure key management, which is not viable with LN.
Therefore, Binance will begin conducting modest Lightning integration tests. CZ predicts that eventually, all exchanges will adopt this instrument. Bitcoin (BTC) transactions made using LN are quicker and cheaper than those done over the L1 network.
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