El Salvador, a pioneering nation in embracing Bitcoin (BTC) as a legal tender, has achieved a significant milestone with the launch of its first local Bitcoin mining pool, “Lava Pool.” This initiative signifies the country’s commitment to harnessing renewable energy sources for cryptocurrency mining.

Lava Pool, spearheaded by Volcano Energy in partnership with Luxor Technologies, leverages Luxor’s Hashrate Forward Marketplace to automate risk management techniques utilized by other major Bitcoin mining companies, effectively reducing market volatility.

To kickstart the project, Volcano Energy will establish a 241 MegaWatt (MW) renewable energy park in Metapan. This construction will include 169 MW of photovoltaic solar energy and 72 MW of wind power. However, the long-term objective of the project is to tap into the abundant geothermal energy resources in the country.

As part of the public-private partnership, Volcano Energy will contribute 23% of its net income from mining operations to the government of El Salvador. Additionally, the mining profits generated will be reinvested in energy transmission and infrastructure projects, fostering economic growth and technological advancements in the Central American nation.

El Salvador’s commitment to renewable energy sources gained attention in early 2023 when Tether, a stablecoin issuer, invested in the country’s $1 billion renewable energy project. This investment aimed to power future Bitcoin mining activities in El Salvador while diversifying Tether’s interests into energy production and utilizing renewable resources.

Volcano Energy’s mining pool, Lava Pool, is designed to provide small-scale miners with a low-cost mining pool option. The payment system in Lava Pool follows the Full Per Share approach, where payments are distributed based on each miner’s hash power contribution to the pool.

Gerson Martínez, Chief Strategy Officer of Volcano Energy, emphasized that the launch of Lava Pool aims to decentralize Bitcoin mining and capitalize on El Salvador’s regulatory clarity and business climate, which offer stability and predictability for Bitcoin-related ventures.

Volcano Energy officially announced the activation of Lava Pool, inviting miners to join the mining pool and benefit from its decentralized approach and the favorable regulatory framework in El Salvador.

El Salvador’s introduction of Lava Pool marks a crucial step forward in its pioneering journey towards sustainable Bitcoin mining. By utilizing renewable energy sources and embracing regulatory clarity, the country is establishing itself as a leader in the global Bitcoin ecosystem, fostering economic growth, and promoting environmental sustainability.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.