In a recent ‘ask me anything’ session, Binance CEO Changpeng ‘CZ’ Zhao, a well-known Bitcoiner (BTC), highlighted his daily routine, Web3 possibilities in Dubai, and some specifics of Binance’s road plan.
Binance (BNB) is not going to start mining Bitcoin (BTC), CEO says
The largest cryptocurrency exchange in the world, Binance (BNB), is not currently engaged in cryptocurrency mining and has no plans to do so. Due to the extremely unique nature of Bitcoin (BTC) mining as a company, this choice was made. Additionally, according to CZ, it needs too much hardware and technical skill to use.
As a result, Binance (BNB)’s rivals in the mining industry often have more advantages. It will continue to run its mining pool at the same time, which should not be mistaken with hash mining itself:
We are pleased that miners using our pool and may utilise Binance’s liquidity to assist in defraying their operating expenses. While we provide miners an integrated solution, we don’t really engage in mining. Although there are many misunderstandings about mining, which I think is incredibly important, it isn’t our area of expertise.
The fifth-largest pool in terms of Bitcoin (BTC) is Binance Pool. As of June 2023, it generated 28.96 EHashes per second, or around 7.71% of the net network hashrate for Bitcoin (BTC).
According to information from BTC.com, their block commission rate of 7.01% is really the lowest among the top 10 mining pools.
Eventually, Lightning Network will be supported by all exchanges
A second-layer solution for Bitcoin (BTC) based on payment channels, Lightning Network, was discussed by Binance’s CZ along with his plans for mining Bitcoin (BTC).
He acknowledged that security concerns prevent LN from being included into Binance’s tools “as is”. with particular, Binance (BNB) uses pre-generated Bitcoin (BTC) addresses to ensure safe key management, which is not feasible with LN. Binance (BNB) will begin testing Lightning integration with tiny sums of money as a consequence.
Eventually, all exchanges will incorporate this instrument, according to CZ. Compared to transactions conducted directly via the L1, those using LN are quicker and less expensive.
Additionally, CZ expressed his admiration for the development of the Web3 market in Dubai and acknowledged that his company currently employs 700 people there. Binance CEO said that Dubai had positioned itself as a significant innovation centre for Web3, cryptocurrency, and blockchain.
