In a recent “Ask me anything” session, Changpeng “CZ” Zhao, the CEO of Binance, one of the world’s largest cryptocurrency exchanges, shed light on several important topics, including Bitcoin mining, Lightning Network integration, and Dubai’s emergence as a leading hub for Web3, crypto, and blockchain.
Binance, known for its diverse ecosystem and innovative services, made a significant decision to refrain from entering the cryptocurrency mining sphere. CZ explained that the unique nature of Bitcoin mining as a business, demanding substantial hardware and expertise, led Binance to focus on its core strengths. He acknowledged the presence of formidable competitors in the mining segment and emphasized that mining was not the company’s primary expertise.
Despite this, Binance continues to operate its mining pool, providing an integrated service to miners. CZ expressed satisfaction with miners utilizing Binance Pool and acknowledged its contribution to the Bitcoin network.
Binance Pool is the fifth largest pool in the Bitcoin network hash rate, accounting for approximately 7.71% of the total hash rate. Binance Pool boasts the lowest commission per block among the top 10 mining pools.
During the session, CZ also addressed the integration of Lightning Network (LN), a second-layer solution for Bitcoin based on payment channels. He acknowledged that LN couldn’t be directly integrated into Binance’s tooling due to security considerations. Binance employs pre-generated Bitcoin addresses for secure key management, incompatible with LN.
Nevertheless, CZ announced that Binance would initiate testing of Lightning integration with small amounts of money, recognizing its potential to enhance transaction speed and cost-effectiveness compared to Layer 1 transactions.
Furthermore, CZ believed that all exchanges would eventually adopt Lightning Network integration. The scalability and efficiency benefit it offers to align with the industry’s pursuit of faster and cheaper transactions.
CZ also shared his enthusiasm for Dubai’s progress in the Web3 segment. Highlighting the city’s emergence as an innovative hub for Web3, crypto, and blockchain, CZ revealed that Binance currently employs 700 people in Dubai, and the numbers are growing. Dubai’s commitment to fostering a thriving ecosystem has attracted industry leaders, and CZ expressed his admiration for the advancements made in the region.
As Binance continues to prioritize its core expertise, the exchange remains committed to providing innovative solutions and contributing to the crypto industry’s growth worldwide. With the ongoing developments in Bitcoin mining, Lightning Network integration, and Dubai’s Web3 landscape, Binance aims to position itself at the forefront of emerging technologies and further empower its global user base.
