Mining Pool: Your friend Binance has joined the group chat
Author | Qin Xiaofeng
Produced | Odaily
Produced | Odaily
Introduction
secondary title
Introduction
After a long wait, Binance Pool (BinancePool) is online today.
At the end of last year, Binance founder Zhao Changpeng (CZ) said in an exclusive interview with Odaily that Binance will continue to expand its business territory in 2020, and the layout of mining pools is one of the directions. At that time, many people thought that Binance was just talking on paper, and it was too early to really enter the game. But on April 1 this year, Changpeng Zhao issued a document confirming that Binance Mining Pool will be launched soon.
On April 24th, Changpeng Zhao once again posted a picture showing that Binance Mining Pool is conducting internal testing and digging out the first Bitcoin block. Another 3 days later, Binance Mining Pool officially announced its launch. This also means that the three major exchanges have all entered the field of mining pools.
For example, for PoW mining pools, what preferential policies will Binance introduce to attract miners? For PoS mining pools, which currencies does Binance support and what are the benefits? Now that the status of the established mining pool is stable, how does the Binance mining pool, as an exchange mining pool, differentiate its competition? For its own business, what role does Binance Mining Pool play, and will it issue mining pool tokens in the future?
Based on various questions, Odaily interviewed the Binance mining pool team, and they also gave detailed answers.
secondary title
1. Binance Mining Pool: PoW+PoS dual mode
First of all, this time Binance simultaneously launched the PoW and PoS mining pool business.
Let’s talk about PoS first. In fact, it is natural for Binance to do PoS mining pool business, and it can directly undertake the previous Staking business of Binance Exchange. Therefore, Binance Mining Pool has covered the mainstream PoS tokens in the current market as soon as it was launched.
"In fact, Binance has been doing the PoS business, and currently supports 23 PoS currencies." Binance said, "We will further leverage the natural advantages of the exchange in the PoS mining pool to provide C-end customers with high-quality and convenient participation. The community and the way to obtain benefits allow users to participate more directly.”
(Odaily note: Huobi mining pool supports 23 POS tokens, and OKEx mining pool supports 9 POS tokens.)
PoW mining is a business that Binance Mining Pool will focus on to make up for the gap in the ecological layout of the mining industry. Currently, BTC mining has been launched, and Binance also said that more PoW currencies will be launched in the future.
When it comes to preferential policies, in order to expand users, Binance Mining Pool implements zero fees for a limited time.
"Our BTC mining pool adopts the FPPS income distribution model, and the public rate is 2.5% to benefit miners, which is already the lowest in the industry. Before May 31st, we will have 0 rate, and before May 31st, miners can still Fill out the registration form to apply for a longer period of 0-fee benefits.” Binance said.
The Odaily survey found that the current public rate of the top PoW mining pools (for general retail miners) is at least 4%.
From the perspective of ordinary retail miners, the 2.5% fee rate of Binance Mining Pool is indeed attractive.
Odaily also asked about mining pool tokens, and Binance Mining Pool said it would not issue its own mining pool coins.
On the one hand, Zhao Changpeng, He Yi and other Binance executives have repeatedly called out and made promises that "BNB will be the only token in the Binance ecosystem", and Binance Mining Pool will naturally not face it; on the other hand, Binance Mining Pool The pool tends to benefit miners, reducing its own profit margins. In order to protect investors, Binance Mining Pool put an end to the new coin issuance plan from the source.
"In the PoW business, the mining pool undertakes the centralized miners' computing power to burst blocks, distributes the income in a centralized manner, bears the fluctuation of lucky value, and collects handling fees; in the PoS business, the mining pool undertakes proxy voting, and then distributes the income to everyone. In this way Under the business model, mining pool profits should not be high. Binance Mining Pool will continue to optimize its business, increase miners’ income, and increase industry competition, which is the biggest responsibility to miners.” Binance said.
Although the linkage policy between BNB and Binance Mining Pool has not been announced yet, analogous to Huobi Mining Pool, perhaps holding BNB in the future can enjoy Binance Mining Pool POS token airdrops.
(Odaily Note: Huobi Mining Pool stipulates that holders of mining pool coins can enjoy airdrops of multiple POS coins including EOS.)
Finally, there is the underlying technology and team of the mining pool. Binance Mining Pool is built by Binance itself.
Previously, there were media reports that Binance Mining Pool will adopt third-party technical solutions and hire former employees of Bitmain to provide Bitcoin mining pool services. In response, Binance responded that the technical architecture of the mining pool was independently completed by the Binance mining pool technical team.
In fact, the time for Binance to really invest in the mining pool business is very short, and the preparation time is less than three months.
"Binance has been paying attention to the development of the mining industry. Until February this year, when the conditions were ripe, we began to prepare for the launch of our own mining pool business - Binance Mining Pool." Binance told Odaily.
secondary title
2. Significance of the layout: make up for shortcomings and empower BNB
The launch of Binance Mining Pool means that all three top exchanges have entered the mining industry.
The emergence of exchange mining pools has broken the mining industry pattern in which old PoW mining pools monopolize computing power. For miners, it is undoubtedly convenient to be able to experience the one-stop service of mining + trading.
For Binance, opening the mining pool business is also the only way to lay out a comprehensive ecology.
On the one hand, the launch of Binance Mining Pool has made up for the lack of Binance Ecology in the field of mining.
Although Binance has successively launched futures, options and other businesses before, they are still mainly concentrated on the trading level, and only expand the category vertically. Now Binance expands its business horizontally, enters the field of mining pools, breaks down the barriers between the encryption industry, and forms a complete industrial chain: mining-trading-coin savings and wealth management. This will also bring incremental users to Binance.
Moreover, Binance intends to further expand in the mining industry in the future and integrate the upstream and downstream of the mining industry. "Provide miners with in-depth financial services around mining machines, mine farms, OTC and other businesses, and break through the current status of multi-service and multi-platform."
Based on PoW computing power mining, Binance Mining Pool will also develop user-oriented mining products, such as cloud computing power.
"We plan to launch mining products that are more suitable for C-end users at the right time. In response to the current situation of high mining threshold and many traps, we will make product innovations so that ordinary users can easily enter the mining industry." Binance said.
On the other hand, the launch of Binance Mining Pool will also bring certain economic benefits to Binance.
From the perspective of PoW market size, even if Bitcoin is halved in May 2020, the value of BTC mined in the next year will still exceed 3 billion US dollars; from the perspective of PoS market development, Ethereum, which has the second market value in the second half of this year, will also Will move to PoS.
All of the above will benefit the development of Binance Mining Pool and expand the value of the entire Binance ecosystem. The final direction is to empower the Binance ecological token BNB.
"The revenue generated by all Binance businesses will be included in Binance's overall ecological planning and used to destroy BNB." He Yi said.
secondary title
3. Future development: Fine service miners, comprehensive layout of mining industry
"Can Binance Mining Pool really work?" Some people still have doubts about the future development of Binance Mining Pool.
Odaily thinks the answer is yes. As an exchange mining pool, it is natural for Binance Mining Pool to flex its muscles in the POS field first, but it does have to undergo many tests in the PoW field.
Binance Mining Pool is backed by Binance Exchange, users only need to transfer in the exchange to complete the pledge, and the migration cost of PoS token mining is low; and the Binance brand endorses it, compared to other Staking business node service provider, users have a higher degree of trust in Binance Mining Pool.
Therefore, it is not difficult for Binance Mining Pool to start PoS business. This point has also been proved by the practice of Huobi Mining Pool and OKEx Mining Pool, both of which have ranked first among EOS supernodes and topped other PoS token node rankings.
Surrounded by powerful enemies, how can Binance Mining Pool compete with Huobi Mining Pool and OKEx Mining Pool for the leading position in the PoS market?
Binance said that in the field of PoS, Binance Mining Pool will uphold the principle of "increasing miners' income", so that PoS miners can obtain higher income and be more transparent. "The EOS lock-up product we recently launched has an annualized return of 8% on the 30th, which is twice that of OKEx and Huobi."
But it is impossible to gain a firm foothold in the PoW market simply by sharing profits. Many miners told Odaily that the interest rate is not a prerequisite to impress the miner community. “Although Binance Mining Pool offers a 2.5% rate, for big miners, they can also enjoy lower rates in other mining pools.
In addition to the fee rate, other services that the mining pool can provide are also important factors for miners to consider. After all, mining is only a part of the mining industry, and the needs of miners are also diverse.
Full-process and refined services, financial services are the most important. For example, coin mining must be traded. Coin-to-coin transactions have requirements for depth and handling fees, while OTC transactions have relatively high requirements for the security of funds; for example, when miners believe that the currency price is at risk of falling, hedging may be required ;For another example, some miners are hoarders who only dig and do not sell. At this time, safe and stable financial management will be their immediate needs... To provide services for the above needs, exchange mining pools may have more advantages than old-fashioned PoW mining pools .
“For PoW miners, we will rely on Binance’s in-depth understanding of finance to provide miners with high-yield investment opportunities on the asset side, provide customers with convenient and convenient financing channels on the liability side, and have professional derivatives products for miners to resist Risk enhances return."
Binance added that financial tools customized for miners will also be launched one after another after fully exploring the needs of miners. In addition, customized services can also be provided for the special needs of different miners. "By integrating Binance Finance's products, we can provide customers with more customized products. Customers can get tailor-made customized services in Binance. It is no longer a cold hedging, complex option products, but for Customers provide products that are closer to their business."
As of press time, among the BTC mining pools, OKEx mining pool and Huobi mining pool ranked sixth and ninth respectively, with a difference of three to four times in computing power from F2Pool, which ranked first.
Summarize
secondary title
Summarize
In any case, from zero to one, for Binance, it is an increment to fill the business gap. As for how to go from one to ten, Binance has its own set of rules.
