During a recent “ask me anything” session, Changpeng “CZ” Zhao, the CEO of Binance, a leading cryptocurrency ecosystem, discussed various topics including his daily routine, the prospects of Web3 in Dubai, and Binance’s roadmap. One notable highlight was CZ’s clarification that Binance has no intention to engage in Bitcoin mining.
He explained that the mining business requires significant hardware and expertise, and there are already many competitors with a stronger advantage in that sector. However, Binance will continue to operate its mining pool, which should not be mistaken for direct hash mining.
Binance Pool currently ranks as the fifth-largest pool in the Bitcoin network, contributing approximately 28.96 EHashes per second, or around 7.71% of the net Bitcoin network hashrate as of June 2023. Notably, Binance Pool boasts the lowest commission per block (7.01%) among the top 10 mining pools, according to BTC.com statistics.
Aside from Bitcoin mining, CZ also addressed the integration of the Lightning Network (LN), a second-layer solution for Bitcoin based on payment channels. He acknowledged that directly implementing LN into Binance’s existing infrastructure poses security challenges, as the platform relies on pre-generated Bitcoin addresses for safe key management, which is not feasible with LN. However, Binance plans to initiate testing for Lightning integration with small amounts of money. CZ believes that eventually, all exchanges will integrate this tool, as LN enables faster and cheaper Bitcoin transactions compared to the L1 (Layer 1) network.
CZ also expressed admiration for the progress of the Web3 sector in Dubai and revealed that Binance has a growing presence in the city, currently employing 700 people. He acknowledged Dubai’s emergence as a significant hub for innovation in Web3, cryptocurrencies, and blockchain technology.
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