El Salvador continues to make strides in the cryptocurrency world with the launch of its first Bitcoin (BTC) mining pool.
Volcano Energy, which launched its Bitcoin mining project in June, has partnered with Luxor Technologies to establish the country's first Bitcoin mining pool called Lava Pool.
Lava Pool's goal is to decentralize Bitcoin mining and take advantage of El Salvador's regulatory clarity. “We decided to launch a pool in El Salvador, the only country with the regulatory clarity and business environment that provides stability and predictability for Bitcoin businesses,” said Gerson Martínez, Chief Strategy Officer at Volcano Energy.
Mining pools are groups of Bitcoin miners who combine their computing power to increase their chances of coming across a Bitcoin block.
Additionally, Lava Pool aims to be the most affordable option for small miners. “Geographic decentralization is at the core of Bitcoin mining, and the development of mining pool infrastructure in El Salvador will contribute to this goal,” said Luxor Chief Operating Officer Ethan Vera.
Luxor, which owns 3.3% of the network's total hash rate and is one of the top ten pools worldwide, will receive a nominal fee from Lava Pool for its management services. In return, Lava Pool will benefit from a lower mining fee.
Volcano Energy is currently building BTC mining facilities in Santa Ana, one of the western regions of El Salvador. These facilities will use renewable energy sources such as wind and solar energy. The project is expected to generate 241 MW of renewable energy, some of which will be used to mine Bitcoin and provide affordable energy to local communities.
*This is not investment advice.