Foundry’s Strategic Move into Layer-2 Solutions
Foundry, renowned as the largest Bitcoin mining pool globally by hashrate, is making headlines with its latest initiative to diversify operations. The company is set to enhance the security of the Bitcoin layer-2 network, Rootstock, by implementing a method known as merge mining.
Understanding Merge Mining and Its Benefits
Merge mining is a groundbreaking technique that allows miners to simultaneously mine multiple cryptocurrencies that utilize the same hashing algorithm. This innovative approach does not compromise mining efficiency, enabling miners to maximize their resources effectively.
Boosting Rootstock’s Security with Significant Hashrate
With this strategic move, Foundry has injected an impressive 200 exahashes per second (EH/s) into Rootstock, elevating its total hashrate to 740 EH/s. This surge accounts for approximately 80% of the total computing power that currently secures the Bitcoin network, significantly bolstering the security of Rootstock transactions.
A New Revenue Stream for Foundry
For Foundry, this initiative represents not only a commitment to enhancing network security but also a lucrative revenue opportunity. Bitcoin mining pools that opt for merge mining can earn 79% of Rootstock’s transaction fees paid in rBTC, all while leveraging their existing Bitcoin mining infrastructure. This dual revenue stream creates a win-win situation for both Foundry and the Rootstock network.
Contributing to a Robust Bitcoin Ecosystem
Through merge mining, Foundry is not only enhancing the security of Rootstock without incurring additional energy costs but also contributing to a more robust and innovative Bitcoin ecosystem. Rootstock functions as a Bitcoin layer-2 network, harnessing the security of Bitcoin while introducing smart contract functionality and compatibility with the Ethereum Virtual Machine.
Correction on the Initial Announcement
In a correction issued on February 6, it was clarified that Foundry injected 200 EH/s, bringing Rootstock’s total to 740 EH/s. An earlier report inaccurately stated that Foundry had added 740 EH/s.
This strategic move by Foundry highlights an exciting evolution in the Bitcoin mining landscape, paving the way for enhanced security and operational efficiency within the cryptocurrency space.
