Today, Binance officially announced the launch of Ravencoin mining services. It will charge 1% fees from the participants in the Ravencoin mining pool. The price of RVN has pumped by almost 10% since the announcement.
What is Ravencoin?
Ravencoin is a peer-to-peer electronic system for the creation and transfer of assets that aims to implement a use-case-specific blockchain. It is built on a fork of the Bitcoin code. It uses the KawPow mining algorithm. If you want to check our beginner’s guide on how to mine Ravencoin, click here.
Crypto mining post the Ethereum merge
Ethereum (ETH) was miners’ favorite option before the merge. The merge was completed in mid-September, and Ethereum transited to the Proof-of-Stake consensus mechanism from Proof-of-Work. PoS does not require high computing power to validate the transactions on the blockchain. Hence, miners’ Graphics Processing Units (GPUs) and other mining equipment went irrelevant if they could not mine Ethereum.
Miners explored other PoW alternatives to Ethereum to continue generating revenue from their mining equipment. This led them to switch to mining Ethereum Classic (ETC) and Ravencoin. As more miners switched to these alternatives, the competition to mine a block increased, and eventually, the mining difficulty increased. The mining difficulty determines how difficult it will be to mine the next block.
According to data from CoinWarz, the mining difficulty of PoW alternatives, ETC, and RVN spiked post-mid-September. The mining difficulty of ETC has nearly tripled since September.
The mining difficulty of RVN spiked more than seven times post the Ethereum merge. It was around 37 K at the beginning of September. By mid-September, the mining difficulty peaked at 279K
The Ethereum Classic mining pool was already live on Binance. Today, they also introduced the Ravencoin mining pool.
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