- El Salvador pioneers with its first Bitcoin mining pool, Lava Pool, backed by 241 MW of renewable energy.
- Lava Pool aims to decentralize mining and provide an affordable option for small miners.
In a recent development, El Salvador has fortified its position in the crypto landscape by launching its premier Bitcoin mining pool, aptly named ‘Lava Pool’. This initiative is driven by the nation’s utilization of a whopping 241 MW of renewable energy, offering a fresh approach to decentralize mining operations and to make affordable electricity accessible to its inhabitants. The news was spotlighted in a tweet by Collin Brown and was further detailed on Forbes.
🌋 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
Learn more: https://t.co/EfJGDs4vIv pic.twitter.com/4rEsoF00zw
— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) October 5, 2023
A Vision of Decentralization and Affordability
Following a partnership between Volcano Energy and Luxor Technologies in June, El Salvador witnessed the inception of Lava Pool. Gerson Martínez, Volcano Energy’s Chief Strategy Officer, emphasizes that this venture is primarily inspired by the unique regulatory environment that El Salvador provides, which is conducive to fostering stability and predictability for Bitcoin enterprises.
Mining pools are essentially conglomerates of Bitcoin miners, pooling together their computational power, or hash rate, to boost their probability of gaining Bitcoin rewards. Lava Pool’s distinctive feature is its ‘Full Pay Per Share’ system. This model ensures miners are rewarded proportionally to their hash power contribution, making it especially attractive for smaller miners.
Renewable Energy: A Catalyst for Change
Distinguished as a game-changer, Volcano Energy is setting up Bitcoin mining infrastructures in Santa Ana’s western department. Harnessing wind and solar energy, the firm aspires to produce 241 MW of renewable energy. This colossal energy will not only fuel Bitcoin mining but will also be channeled to power local communities at economical rates.
The essence of Bitcoin mining accentuates geographically diversified operations. Ethan Vera, Luxor’s Chief Operations Officer, expresses that developing a mining pool infrastructure in El Salvador is a monumental stride towards that decentralization goal. By entering into a mutual agreement with Luxor, Lava Pool enjoys management services at a nominal fee from Luxor and in reciprocity offers a trimmed mining fee. Being ranked amongst the top-ten global pools, Luxor commands about 3.3% of the entire Bitcoin network’s hash rate.
While the Bitcoin network currently boasts a hash rate of 458.441 Ehash/s, the persistent interest from miners, despite Bitcoin’s price fluctuations since 2021, underscores the growing confidence and commitment in the network.
