Changpeng Zhao, the CEO of Binance, recently took the time to answer questions from the public during a Q&A session on Twitter Spaces. During this exchange, he discussed several topics, including his daily routine, the prospects of Web3 as well as the challenges of integrating the Lightning Network. Additionally, CZ announced that Binance, the world’s largest crypto exchange, has no intention of engaging in Bitcoin mining.
Binance Excludes Bitcoin Mining!
Despite its position as the largest cryptocurrency exchange in the world, Binance never considered getting into Bitcoin (BTC) mining. This decision was confirmed by Changpeng Zhao, CEO of Binance, during an interactive session titled on Twitter Spaces.
During this session, CZ answered to the various questions posed by the public, covering topics such as their daily routine, the perspectives of Web3 and the challenges associated with the integration of the Lightning Network.
According to CZ, this decision is based on the very specific nature of Mining Bitcoin, which requires a considerable investment in terms of equipment and expertise. Moreover, he underlined the strong competition present in this sector, where other players enjoy more advantages. However, Binance will continue to offer mining pool services to support miners by providing liquidity to cover their operational costs.
“In fact, we don’t do any mining. This is one of the few spaces or sectors of the industry that Binance is not involved in, and we do not plan to be. Mining is a very different type of business with different aspects to consider. This involves hardware, which we don’t know very well. I think a lot of other players have more advantages than us. Mining just isn’t our forte.”
When will Binance implement the Lightning Network on its exchanges?
Besides mining, CZ discussed the integration of the Lightning Network, a second layer solution for Bitcoin based on payment channels. He noted that Binance cannot simply integrate LN into its current infrastructure due to key management security concerns.
Nonetheless, Binance plans to start integration testing with small amounts of money. CZ remains convinced that all exchanges will eventually adopt this solution, as it offers faster and cheaper transactions compared to L1 transactions.
“We use a secure wallet infrastructure where addresses are pre-generated in a separate protected environment, and public keys are then exported to the production environment, which is separate from the wallet environment.”
Finally, CZ also expressed his excitement about the progress made by the Web3 segment in Dubai. He highlighted Binance’s continued commitment to this dynamic, with more than 700 employees already present in the city and continuing its development there.
Dubai has taken off as a major innovation hub for Web3 technologies, cryptocurrency and blockchain. Indeed, the city is now home to more than 500 proactive businesses operating in these burgeoning fields.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
