Binance wants to consolidate in its pool more hashrate of the Bitcoin network from Russia and Central Asia, 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 index of electricity consumption Bitcoin (CBECI), the current monthly average heshreyta of miners in Russia amounts to 6.08% of BTC world production, and by miners in Kazakhstan – 3.14%. At the same time, the hash rate from Chinese miners decreased from 75% recorded in the III quarter of 2019 to 71%.
Currently, nine out of the ten largest BTC hashrate mining pools are either Chinese companies or they belong to cryptocurrency exchanges, the owners of which are associated with 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. While this hash rate may only account for about 1% of BTC’s total computing power, the deal highlights Binance’s strategy of taking over miners across regions.
“Binance Pool offers a very competitive commission structure for institutional miners – clients of our data center,” said BitRiver CEO Igor Runets.
He estimates that up to 50% of the hashrate of BitRiver customers’ farms can be moved to the Binance Pool after the deal. Runets added that these customers will mostly leave the BTC.com pool run by 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 measures 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 cryptocurrency exchange Binance launched a mining pool at the end of April and gradually accumulated 7,000 PX / s from the total hashrate of the Bitcoin network. Binance Pool is currently the eighth largest BTC mining pool.
Binance’s pool implemented the Fully-Pay-Per-Share (FPPS) model and initially offered zero fees, and now charges 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 an agreed subsidy fee on each block mined and then distributes subsidies as well as transaction fees to 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.