Binance wants to consolidate more hashrate of the Bitcoin network from Russia and Central Asia in its pool by deploying a physical server node at the BitRiver mining site in Bratsk.
As reported by Binance and BitRiver, the initiative will allow BitRiver ASIC miners who decide to switch to Binance to get a better connection and direct routing to the mining pool.
In turn, Binance will have access to clients who manage devices hosted on BitRiver. Currently, the total capacity of the enterprise for the production of BTC is 70 mW / h of a total capacity of 100 mW / h.
According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), the current average monthly hash rate from miners in Russia is 6.08% of global BTC production, and from miners in Kazakhstan – 3.14%. At the same time, the hash rate from Chinese miners decreased from 75% recorded in Q3 2019 to 71%.
Currently, nine of the ten largest BTC mining pools by hash rate are either Chinese companies or they are owned by cryptocurrency exchanges whose owners are tied to China.
Assuming that, on average, BitRiver clients use modern ASIC miners, such as Antminer S17 from Bitmain or equivalent models, the total hashrate of BitRiver farms may exceed 1,000 P / s. Although this hashrate can only account for about 1% of BTC’s total computing power, the deal underlines Binance’s strategy of acquiring miners in different regions.
“Binance Pool offers a very competitive commission structure for institutional miners – clients of our data center,” said BitRiver CEO Igor Runets.
According to his estimates, up to 50% of the hash rate of BitRiver customer farms can be transferred to Binance Pool after the transaction. Runets added that these customers will mostly leave the BTC.com pool running Bitmain.
Both parties did not disclose whether Binance would offer special conditions on commissions to attract BitRiver customers. However, the below-market rate is one of the key steps Binance is taking to attract new miners to the pool. According to available information, Binance wants to establish similar cooperation with miners in Kazakhstan.
Recall that the Binance cryptocurrency exchange deployed a mining pool at the end of April and gradually accumulated 7,000 Px / s of the total hash rate of the Bitcoin network. Binance Pool is currently the eighth largest BTC mining pool.
Binance Pool implemented the Fully-Pay-Per-Share (FPPS) model and initially offered zero commissions, but now it charges a fee of less than 2.5%. But in some cases, the fee offered to large miner operators may be below 1%.
Meanwhile, other large BTC mining pools, such as F2Pool and Poolin, have also previously lowered their fees from 4% to 2.5%, although there are more favorable conditions for large clients.
The FPPS model means that the pool only charges the agreed commission for the subsidy in each block mined, and then distributes the subsidies, as well as transaction fees to the miners in proportion to their contribution. According to current data, since its launch, Binance Pool has mined 488 blocks with a total subsidy volume of over 3,000 BTC.
