Expanding from the cryptocurrency exchange business, Binance has launched an Ethereum mining pool on Tuesday.
This move came only seven months after the crypto exchange giant launched a Bitcoin mining pool, which gained over 11 percent of the total hash rate in the Bitcoin network.
#Binance Mining Pool https://t.co/EkaqtjMpP9 pic.twitter.com/1HAa2IeZBd
— CZ Binance (@cz_binance) November 13, 2020
“Binance Pool has deployed mining nodes worldwide to support participation from the global mining community,” the official announcement noted.
Ethereum mining system is currently similar to Bitcoin’s as both use the full pay-per-share (FPPS) method for distributing the mining and block rewards.
The official announcement by the exchange detailed that the Binance Ethereum mining pool will charge only a 0.5 percent pool fee for Ethereum mining. This fee is much lower than the other mining pools.
Additionally, to beat the existing pools, Binance is not charging any fee from the miners for a month.
“From November 12, 12:00 AM to December 12, 12:00 AM (UTC), all users can enjoy a 0% pool fee rate for Ethereum mining by connecting their Ethereum hash power to Binance Pool,” Binance stated.
Major Updates Coming for Ethereum
Binance launched its Ethereum mining pool when the altcoin is moving its consensus mechanism from proof-of-work to proof-of-stake, which might significantly impact the miners.
Meanwhile, the Ethereum network underwent a mishap recently due to some bug in the major Ethereum node software, Geth. The developers launched an update to the software, resulting in an unannounced hard fork.
Binance, and a few other exchanges and wallets, suspended its withdrawals for Ethereum and other ERC-20 tokens briefly.
Though the jump of Binance into mining seems odd, its exchange competitors are already maintaining some of the top mining pools for both Bitcoin and Ethereum.