In brief
- Foundry Digital is establishing a mining pool for Zcash, the privacy-focused cryptocurrency, which has surged more than 600% over the past year.
- Foundry currently operates the leading mining pool for Bitcoin, Foundry USA, which has earned around 4,150 Bitcoin over the past month.
- Like Bitcoin, Zcash’s security is underpinned by a proof-of-work consensus mechanism, requiring computers to crunch complex calculations to earn rewards.
Foundry Digital said on Wednesday that it plans to offer a mining pool for Zcash next month, enabling people to earn the privacy-focused cryptocurrency using shared resources.
The move is aimed at publicly traded companies and financial institutions, which lack the necessary infrastructure to participate in the process of validating Zcash transactions, the operator of Bitcoin’s leading mining pool said in a press release.
In a statement, Foundry CEO Mike Colyer said that Zcash has “matured into an institutional-grade asset” since it debuted nearly a decade ago, while arguing that the digital asset is playing a “critical role in advancing financial privacy.”
The firm said the arrangement will share similarities with “Foundry USA,” a mining pool that underpins around 31% of Bitcoin’s total hashrate, according to Hashrate Index. Over the past month, it has mined around 4,150 Bitcoin, a sum currently worth $290 million.
Foundry’s Zcash pool is meant to mitigate compliance and counterparty risks with operations based in the U.S., the firm said. Among the world’s leading mining pools, three are operated out of China, where activity remains robust despite recent government crackdowns.
A Foundry spokesperson told Decrypt that the firm’s expansion is not based on how profitable Bitcoin mining currently is. Amid rising energy costs, an increasing number of Bitcoin mining firms have pivoted toward opportunities associated with AI data centers.
“Foundry’s Bitcoin mining business is strong and remains our core foundation,” they added. “The decision to expand into Zcash was informed by the real gap in the market we identified and are uniquely positioned to fill.”
What’s more, Foundry said the Zcash pool will come with round-the-clock tech support for participants, alongside reporting tools for payouts that make them auditable.
Zcash changed hands around $215 on Wednesday, a 4.5% decrease over the past day, according to CoinGecko. Its price has surged more than 600% over the past year.
Mining pools combine the computing power of individual miners to solve blocks together, sharing rewards proportionally to ensure more frequent and stable payouts. Aside from Foundry USA, Ocean and Luxor are among the leading operators of pools based in the U.S.
Similar to Bitcoin, Zcash uses a proof-of-work consensus mechanism. That means new Zcash is earned by power-hungry machines that constantly crunch complex calculations—roughly every 75 seconds, in this case—while securing the network by attesting to the validity of transactions.
Zcash miners measure the power of their rigs in “Gigasols per second,” or GSol/s. Essentially, the metric represents the number of potential solutions miners can find for Zcash’s next block. Since the start of September, Zcash’s hash rate has jumped to 13.8 GSol/s from 8.1 GSol/s, indicating that more resources are being thrown at the network.
Despite the networks’ similarities, the Foundry spokesperson said that Zcash and Bitcoin use “fundamentally different proof-of-work algorithms, and therefore the hardware is not interchangeable.”
The leading Zcash mining pool, operated by ViaBTC, commands 30% of Zcash’s hashrate, according to PoolBay. But Foundry has signaled that could change fairly soon.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
Source: https://decrypt.co/360714/top-bitcoin-mining-pool-operator-foundry-zcash
