- El Salvador’s Volcano Energy collaborates with Luxor Technologies to establish “Lava Pool”, the nation’s premier Bitcoin mining pool.
- Lava Pool aims to provide the most cost-effective mining solution, specifically tailored for smaller miners.
The Rise of Lava Pool: El Salvador’s Forward Leap in Bitcoin Mining
In a move that underscores El Salvador’s progressive embrace of cryptocurrency, Volcano Energy has announced a partnership with global tech firm, Luxor Technologies. This collaboration seeks to birth Lava Pool, the maiden Bitcoin mining pool in the nation. The endeavor is an affirmation of El Salvador’s commitment to Bitcoin after initiating its mining project in June this year.
🌋 Exciting news! El Salvador's first Bitcoin mining pool, Lava Pool, is here! 💡 With 241 MW of renewable energy, it's set to decentralize mining and bring cheap power to local communities. 🇸🇻⚡ #Bitcoin #RenewableEnergy #CryptoRevolution
— Collin Brown (@CollinBrownXRP) October 5, 2023
El Salvador’s emergence as a cryptocurrency powerhouse can be attributed to its unique regulatory environment, which encourages growth and innovation in the crypto domain. Gerson Martínez, Chief Strategy Officer of Volcano Energy, highlighted the nation’s position, noting that El Salvador stands alone with its “regulatory clarity”, offering “stability and predictability” for Bitcoin-focused enterprises. These features made it the ideal location for the inception of Lava Pool.
Demystifying Mining Pools
For the uninitiated, mining pools are collective entities where Bitcoin miners converge, pooling their computational power or “hash rate”. This collective effort amplifies their odds of successfully earning Bitcoin. Lava Pool is set to reshape the landscape of Bitcoin mining in El Salvador, incentivizing miners to join their ranks.
Miners will be compensated through a “Full Pay Per Share” model, a system where payouts are determined by a miner’s contribution of hash power to the collective pool. Gerson Martínez emphasizes Lava Pool’s commitment to being the most economical option for smaller-scale miners. Furthermore, with Volcano Energy spearheading infrastructural development, El Salvador is primed to be a lucrative hub for Bitcoin mining.
Luxor’s COO, Ethan Vera, stated that the global Bitcoin community values geographic decentralization. By fostering mining pool infrastructure in El Salvador, Lava Pool is a significant stride towards realizing this ethos. Luxor, a global top-ten mining pool, contributes expertise and reputation to this endeavor, commanding 3.3% of the total Bitcoin network hash rate, as per BTC.com.
Powering these endeavors is Volcano Energy’s construction of state-of-the-art Bitcoin mining installations in Santa Ana. These will leverage renewable energy sources such as wind and solar. Apart from fortifying El Salvador’s crypto-mining capabilities, this project is also poised to distribute affordable power to its denizens.