DeFi
September 28, 2022
What is Token Burn and it's effects on price
An A-Z guide on token burning and how it is largely impacting the cryptocurrency industry.
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For a number of decades, the world has only known a centralized form of currency but when cryptocurrencies were launched, the world got to know what a decentralized form of economy could do. The crypto world has taken the real world by storm in just over a decade and that was made possible by the people eager to earn some side money.
The decentralized nature of cryptocurrencies has tons of benefits, one of which is that people can develop systems or applications which will benefit the masses. The success of such products totally depends on the capability and adoption of that project.
Binance mining pool is one such product from the world's largest cryptocurrency exchange platform Binance, which if used correctly can be a good source of passive income. In this article, we are going to introduce you to this new stream and we’ll discuss some benefits of it.
Binance mining pool is a single solution which can fulfill all the requirements of miners, providing them a dedicated mining platform. The Binace mining pool facilitates mining of both Proof-of-Work based cryptocurrencies and Proof-of-Stake based cryptocurrencies.
It is the largest mining pool presently, having a wide network of miners. The algorithms support multiple cryptocurrencies and the format and systems incorporated makes sure miners get fair rewards.
The mining pool combines the computing power of computers present on its network and mines new cryptocurrencies. Later, the rewards for mining are distributed amongst the miners in the pool, thus giving a systematic yet efficient approach to mining.
To understand Binance mining pool furthermore, let's take a look at benefits offered by the pool.
The Binance network has a huge user base spread across the various homegrown features and products. Therefore, lack of contributors in decentralized pools is not something Binance had to face. Let’s go through the benefits of Binance mining pool one by one.
Binance ecosystem is huge and has some of the market leading products like Binance launchpads, labs and its exchange. Therefore, users can easily bridge between these products being a part of Binance ecosystem.
If a user chooses to be a part of the Binance mining pool, the interface between mining, trading and exchanging tokens becomes seamless and does not require multiple platforms and apps.
Bitcoin and Ethereum are the two major PoW based cryptocurrencies which can be mined through the Binance mining pool. Binance has incorporated dedicated distribution models to reward miners for their respective cryptocurrency.
Bitcoin miners are rewarded based on the FPPS distribution model and ETH miners based on the PPS+ model. The earning distributed among the miners is said to be 5% more than the one achieved through personal mining rigs due to use of these distribution models.
Apart from these two major benefits, there are certain factors which might make you consider Binance mining pool for passive income.
Binance smart pool is one new offering from the Binance platform which brings a smarter and more comprehensive approach to mining pools. It focuses more on helping miners generate greater returns and rewards.
The traditional personal mining setups can’t always be profitable as they need to be set up according to a particular cryptocurrency you want to mine. Whereas, Binance smart pool allows you to switch the hash rate so that you can mine different cryptocurrencies using the same installed algorithm.
Under the “Smart” functionality of this mining pool, the auto-switch function lets users switch hash rate to any profitable cryptocurrency at that period of time.You need to know what benefits you can get when using Binance smart pool. Following are some benefits of using this Binance smart pool:
Now that you know what Binance smart pool is, let’s discuss some of its benefits to help you decide whether you should consider this mining pool or not.
Faster processing is one of the main benefits of a Binance smart pool. With this, your transactions will be processed in a much faster manner and you will enjoy speedy withdrawals.
Another good thing about this mining pool is that it has an advanced security system, as hinted by its “multi-tier and multi-clustered system”. You can also expect for your account to be safe from unauthorized access or any other breach which might compromise your personal data or assets.
The Binance smart pool uses a pay-per-share (PPS) system for the distribution of transaction fees. This system is much better than the conventional proportional and the payment per last N share systems. Here, miners will be given 99% of the transaction fees without having to wait for a specific number of blocks before they are paid.
There is also no need to worry about whether or not you will get your money as miners are paid weekly or daily depending on your choice once a block has been found.
One more benefit of using Binance smart pool is that it helps you save money on electricity bill cost since with this mining pool, you only need to leave the computer running when there are transactions being made.
There are a lot of mining pools you can be a part of today. It is important to have a mining pool that fits your personal needs and where you are comfortable with the rules and fees structure.
Binance pool is one of the top mining pools that you can be a part of today, so you don’t have to worry, because they will help you through this process and come out on the other side with lots of money in your wallet.
We hope this article will help you in understanding the benefits of mining pools offered by Binance. Before registering yourself on any platform and beginning your mining journey make sure you do your own research or as we call it in the crypto world “DYOR”.
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