El Salvador’s continued dedication to its Bitcoin strategy is shown by the country’s latest initiative

El Salvador, a pioneer in accepting Bitcoin (BTC) as a legal money, has taken a huge step forward in opening its first local Bitcoin mining pool “Lava Pool”.

Its aspiration to become a global energy leader is reflected in the fact that it has already established a number of key partnerships in the renewable energy sector.

Volcano Energy, along with Luxor Technologies, a company well-known for its experience in offering Bitcoin mining software and services, will lead El Salvador’s Lava Pool, a Bitcoin mining pool.

Using Luxor’s Hashrate Forward Marketplace, the Lava Pool project will automate risk management strategies now used by other major Bitcoin mining businesses to dampen market volatility.

The first step of Volcano Energy’s proposal is to build a renewable energy park with a capacity of 241 MW in Metapan. Photovoltaic solar energy amounts to 169 MegaWattS (MW), while wind energy amounts to 72 megawatts (MW). However, the project’s ultimate aim is to use the country’s plentiful geothermal energy.

Volcano Energy must provide the government of El Salvador 23% of its net profits from mining activities as part of the public-private partnership that funded the project. In addition, the mining earnings earned will also be spent into energy transmission and infrastructure projects to encourage economic and technical build-up in the Central American country.

In the early years of 2023, El Salvador’s efforts to switch to renewable energy sources were well known. Among the investors in the $1 billion renewable energy project that would fuel future Bitcoin mining operations in the nation was stablecoin issuer Tether.

Tether’s CTO Paolo Ardoino said in an interview that the company wanted to employ renewable energy to mine Bitcoin as a means of broadening its business interests.

Bitcoin mining pools are groups of miners that combine their hashing power to increase their chances of finding profitable Bitcoin blocks.

El Salvador’s latest Bitcoin mining approach is called Lava Pool. The project was developed to give the lowest-cost mining pool alternative for small-scale miners.

Payment in the Lava Pool will be Full Per Share, meaning that miners will be compensated proportionally for the amount of hashing power they provide to the pool.

According to Volcano Energy, the Lava Pool’s goal is to promote decentralization in Bitcoin mining while taking advantage of El Salvador’s legislative clarity.

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