- Binance CEO believes Lightning Network adoption is essential for all exchanges.
- The CEO said Binance would not engage in Bitcoin mining.
- He admitted the sector’s complexities and the competitive advantages of others.
During a recent Ask Me Anything (AMA) session, Binance CEO Changpeng Zhao (CZ) sent shockwaves through the crypto community, making bold declarations that sent ripples through the mining and transaction sectors.
Zhao firmly stated that Binance has no intentions of dabbling in the complex world of Bitcoin mining hardware. He acknowledged that mining is a distinct sector in the industry with its own unique considerations and complexities, primarily revolving around hardware infrastructure.
The CEO emphasized that while Binance does not possess the necessary expertise in the area and other players have a competitive advantage. Consequently, Binance will not be involved in mining operations, focusing instead on its core strengths.
Regarding the Lightning Network, a participant in the Twitter Spaces session inquired about when Binance would implement it on its exchanges. Zhao explained that Binance employs a secure wallet infrastructure where addresses are pre-generated in a protected environment before being exported to the production environment.
However, implementing the Lightning Network poses distinct security challenges, as pre-generating addresses are not feasible. CZ mentioned that the Binance team is actively working on solutions but emphasized the need to consider the security aspects involved carefully.
He hinted that initial implementation might focus on enabling Lightning Network transactions for small amounts. While CZ did not provide a specific date for implementation, he noted that Binance’s team has extensively researched the Lightning Network and aims to support it in the future.
CZ expressed his belief that all exchanges will eventually have to embrace the Lightning Network to avail of its benefits, such as cost savings and faster transactions. According to the CEO, such implementation would enhance services like Binance Pay and various wallet offerings.