Recently, the world’s largest cryptocurrency exchange, Binance launched a new mining pool. Users of that platform will be able to connect their graphics cards and start mining the cryptocurrency of Ethereum (ETH).
Meanwhile, the second currency in market capitalization, ETH, joins Bitcoin in the Binance Pool service. It should be remembered that, recently, this exchange launched a pool for Bitcoin mining, which includes the most important extractable currencies with the Sha-256 algorithm.
It should be noted that, initially, the commissions for the Ethereum pool will be free, that is, without charge. Subsequently, the withdrawal fees will be 0.5%. On the other hand, cryptocurrency enthusiasts view this service with concern, as they fear the growing centralization in which Binance plays a leading role.
What are the advantages of the new Binance pool?
The launch of its pool implies for Binance, entering a difficult fight against the Chinese oligopoly in this area. It is important to note that practically all of the large Bitcoin mining pools are of Chinese origin, with the exception of Slushpool.
Although Binance was founded in the People’s Republic of China, it left that country in anticipation of the veto on cryptocurrency exchange. In 2017, Beijing banned trading in digital currencies, so all exchanges in that country had to disappear or leave the nation.
When it comes to pools dedicated to mining Ethereum, the most important of the altcoins, the competition is notable. However, Binance will use its reputation as one of the most reliable and versatile companies when it comes to cryptocurrencies, to consolidate itself in this new space.
One of the ways that Binance will try to attract users to its new pool is through a zero commission program. It will have a specific duration (the first month) after which, rates of 0.5% will begin to be charged, which still leaves it as a very attractive option.
Some requirements for the use of the service
To start using this new Binance Pool service, Ethereum miners will need to meet several parameters. The first one is to have a Windows or Linux operating system. They should also have the most important, a GPU card.
The latter may be of the NVIDIA or AMD brands of any denomination, as long as it exceeds 4 GB of VRAM. Finally, you must have a mining software such as EasyMiner, Ncard, MinerOS or others.
On the other hand, the Binance website reports that this new pool service o pool, will have a system called Pay Per Share Plus (PPS +). It is one of the most widely used payment methods, although not the only one by mining pools.
It consists in that, when a block is mined, the pool divides the income among the participants. At the same time, the reward is accompanied by earnings from transaction fees. For example, when a block is mined, the pool receives 6.25 BTC plus the bitcoins corresponding to the transaction fees charged by the network.
This new Binance initiative raises concerns among the most orthodox cryptocurrency enthusiasts. Many of them claim that the centralization of the ecosystem by firms such as Binance, is contrary to the decentralized nature of cryptocurrencies.
Data to take into consideration
- According to official data from the Binance web portal, its new mining pool for Ethereum was launched on November 12.
- This pool joins that of Bitcoin, which was launched in April and with which other currencies such as Bitcoin Cash and Bitcoin SV can be mined.
- Currently, Binance’s Bitcoin pool groups more than 9% of the computing power of that cryptocurrency.
- The first month of this new service will be offered free of charge. Subsequently, they will be 0.5%.