Binance CEO CZ Dismisses Bitcoin Mining Plans, Eyes Lightning Network Integration

Binance CEO Changpeng Zhao, known as CZ, recently clarified the company’s stance on Bitcoin mining. In an “ask me anything” session, he confirmed that Binance has no plans to enter the Bitcoin mining sector. The decision stems from the complex nature of Bitcoin mining, which requires significant hardware and expertise, according to the u.today.

CZ emphasized that Binance’s strength lies elsewhere, despite running the fifth largest Bitcoin mining pool. Binance Pool, responsible for about 7.71% of the Bitcoin network’s total hashrate, provides liquidity for miners. However, Binance itself does not engage in mining. CZ explained that while mining is crucial, it’s not Binance’s core expertise.

In the same session, CZ also discussed the Lightning Network (LN), a second-layer solution for Bitcoin transactions. He acknowledged the challenges of integrating LN into Binance’s system due to security concerns. Specifically, Binance uses pre-generated Bitcoin addresses for safe keys management, a feature not compatible with LN.

Despite these challenges, CZ revealed that Binance plans to test Lightning Network integration with small amounts of money. He predicted that all exchanges will eventually adopt this technology, which makes Bitcoin transactions faster and cheaper.

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