Binance AMA | Founder Changpeng Zhao CZ Discusses Dubai as a Cryptocurrency Innovation Hub, Binance's Plan to Support the Lightning Network

On May 31, Binance founder Zhao Changpeng conducted a Twitter AMA. The following content was compiled based on the announcement from Binance. In addition to promoting business development in Dubai, what may have excited the Bitcoin community more is the plan to integrate the Lightning Network.

Dubai Emerges as Cryptocurrency Innovation Hub, Binance Rapidly Expanding Local Influence

Dubai has become one of the global hubs for cryptocurrency innovation, with Binance's presence in the city steadily growing. Binance's founder, Changpeng Zhao (CZ), mentioned in a Twitter Space Q&A that he is optimistic about the future of Dubai and emphasized the remarkable growth of Binance in the city.

He noted that just over a year ago, Dubai had only a few cryptocurrency companies, but now there could be thousands, with thousands more businesses undergoing registration and licensing processes. Zhao also mentioned that Dubai hosts various cryptocurrency events every night, such as dinners and seminars, showcasing the city's vibrancy and appeal as an international hub. He believes Dubai has become a thriving center for cryptocurrency innovation and will continue to grow.

Don't Blindly Trust Social Media, Binance Founder Warns Cryptocurrency Beginners

Binance's founder, Changpeng Zhao, emphasized that cryptocurrency beginners should be cautious when seeking advice from social media. He warned against blindly following advice from experts on platforms like YouTube and Twitter. He advised beginners to conduct their own research and understand the background and context of any investment. Zhao pointed out that everyone's situation is different, so just because someone is famous online doesn't mean their advice is suitable for everyone. He encouraged beginners to be skeptical of advice on social media, conduct their own research, understand their personal situation, and then make decisions.

Binance Not Involved in Mining Business, But Operates Large Mining Pool

While Binance plays a significant role in the cryptocurrency industry, its founder, Changpeng Zhao, stated that Binance is not engaged in mining operations. He explained that mining is a completely different field from exchange business and involves many different factors, such as hardware equipment. Nevertheless, Binance operates a large mining pool, which is distinct from mining farms. Binance's mining pool aims to provide low-cost services and help miners cover operational costs. Zhao believes mining is important, but it is not Binance's core expertise.

Binance Plans to Support Lightning Network in the Future

Binance's founder, Changpeng Zhao, revealed that Binance plans to support the Lightning Network in the future. However, he pointed out that implementing the Lightning Network is not simple and requires addressing many security issues. Zhao explained that Binance's wallet infrastructure currently cannot pre-generate Lightning Network addresses, so different security considerations are needed. Despite this, Binance's team is very familiar with the Lightning Network and is researching various solutions. He stated that Binance may initially allow small transactions to use the Lightning Network and mentioned that ultimately, every exchange will need to support the Lightning Network. Implementing the Lightning Network will bring faster transaction speeds and lower costs to users, which will be very beneficial for future innovations like Binance Pay and wallet services.