In a significant development for the cryptocurrency world, Volcano Energy has unveiled plans to launch the first bitcoin mining pool in Central America, named “Lava Pool.” This initiative follows the company’s bitcoin mining project launch in El Salvador earlier this year, and it’s a collaborative effort with Luxor Technologies.
El Salvador’s Lava Pool
Gerson Martínez, the Chief Strategy Officer at Volcano Energy, highlighted the objective behind Lava Pool: to decentralize bitcoin mining while capitalizing on El Salvador’s regulatory clarity. Martínez emphasized that El Salvador’s business environment provides stability and predictability, making it an ideal location for bitcoin-related ventures.
Bitcoin mining pools are collectives of miners who combine their computational power to increase their chances of earning bitcoin rewards. Lava Pool aims to attract miners and bolster the bitcoin mining ecosystem in El Salvador. The pool will utilize the Full Pay Per Share model, where payments are distributed based on miners’ contributions to the overall hash power. Additionally, the project aims to offer the most cost-effective mining pool option, especially catering to small-scale miners.
Empowering Bitcoin Miners
Ethan Vera, Chief Operations Officer at Luxor, emphasized the significance of geographical decentralization in bitcoin mining. Establishing a mining pool infrastructure in El Salvador aligns with this principle and contributes to the broader goal of decentralization. Luxor Technologies, one of the world’s top-ten mining pools with 3.3% of the total network hash rate, will provide management services to Lava Pool in exchange for a reduced mining fee.
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Volcano Energy is actively constructing bitcoin mining facilities in the western department of Santa Ana, El Salvador. These facilities harness renewable energy sources like wind and solar power to generate 241 MW of clean energy. This sustainable energy will serve a dual purpose: supporting profitable bitcoin mining operations and delivering affordable electricity to local communities. El Salvador’s pioneering approach to cryptocurrencies continues to gain attention, with the establishment of Lava Pool marking another significant step in the country’s growing influence in the global bitcoin mining sector. With favourable regulatory conditions and a commitment to sustainable energy, El Salvador is poised to become a notable player in the cryptocurrency mining industry.