Binance Will not Get Involved in Hardware Crypto Mining, CZ Says
- The CEO of Binance, Changpeng Zhao, said that his firm has no plans to get involved in crypto mining.
- He also added that the development team is working on a number of solutions for Lightning Network integration.
- “I think every exchange will have to support the Lighting Network. The earlier we can do it, the better,” he said.
- Recently, there were rumors of Binance releasing 20% of its employees in June, but the exchange denied these reports.
The CEO of the world’s largest crypto exchange, Binance, Changpeng Zhao, also known as CZ in the crypto space, recently confirmed that his firm has no plans to enter the hardware crypto mining industry but is focused on the integration of the Lightning Network, a “layer 2” payment protocol layered on top of Bitcoin (BTC).
In an “Ask Me Anything” session on Twitter Spaces spanning an hour earlier this week, the billionaire answered multiple questions that the audience asked him regarding the future of his business and the firm’s interest in hardware crypto mining activities.
As per a documentation published by Binance of the entire AMA session, Changpeng Zhao stated that he has no plans to push his exchange in the direction of cryptocurrency mining and added that the firm facilitates no mining activities currently. The executive added that mining requires a lot of hardware and is therefore, not a strong point for the exchange. He said that hardware mining is “a very different type of business with different aspects to consider.”
“We’re happy that miners use our pool and have Binance’s liquidity to help cover their operational costs. We provide miners with an integrated service but don’t do the mining itself. I believe mining is very important, and there are many misconceptions about it, but it isn’t our core expertise,” Zhao stated.
Zhao said that there are many other crypto firms that can do better than Binance when it comes to cryptocurrency mining. However, CZ also noted that the leading exchange does operate one of the largest mining pools in the industry, which is very different from mining farms.
When asked whether Binance will integrate the Lightning Network on the exchange, CZ stated that it is not possible to pre-generate addresses with the Layer 2 network and therefore needs additional layers of security. He added that “there are many security considerations behind the scenes,” and the development team at the exchange is familiar with the same and, as a result, is working on a number of solutions.
“We may enable Lightning Network transactions for small amounts first. I don’t have a particular date, but the team has looked into it in a lot of detail. Eventually, I think every exchange will have to support the Lighting Network. The earlier we can do it, the better. Then users can enjoy its benefits, like saved costs with faster transactions. It would be a helpful innovation for the future, especially for Binance Pay and different wallet services,” said the executive.
As reported earlier by BitcoinWisdom, there have been several rumors regarding the operational capacity of the world’s biggest crypto exchange by trading volume. The exchange has about 8,000 employees and said it is evaluating its staff quality ahead of the bull market and plans to expand its workforce.
However, reports have stated that the exchange released around 20% of its employees in June, while Binance has denied these rumors. The leading exchange also witnessed a huge drop in its market dominance after US regulators opened an investigation into the international exchange.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
