Is Jack Dorsey’s Company, Block, Building a Network for Bitcoin Miners?

Block (previously known as Square), the payments business founded by Jack Dorsey, is going to begin mining Bitcoin.

Thomas Templeton, Block’s hardware general manager, set out the corporation’s next actions in a series of tweets.

“From buying, to set up, to maintenance, to mining,” Templeton adds, the aim is to make Bitcoin mining — the process of constructing new Bitcoins by tackling increasingly hard computing tasks — more dispersed and efficient in every aspect.

As per Templeton, making the mining process more accessible is about more than just generating more Bitcoin. Rather, he claims that the firm views it as a long-term requirement for a totally permission-less and decentralized future.

When Dorsey first proposed the notion in October, he remarked in a tweet, “Mining needs to be more distributed.” “The more decentralized this is, the more resilient the Bitcoin network becomes.”

To that goal, the business is addressing a fundamental roadblock: mining rigs are difficult to come by, expensive, and delivery can be uncertain. Block has stated that it is open to developing a new ASIC, or application-specific integrated circuit, for Bitcoin mining.

The project is being nurtured by Block’s hardware team, which is putting together a core technical team of ASIC, system, and software designers under the leadership of Afshin Rezayee.

Dorsey earlier stated that the business was investigating a Bitcoin mining system in terms of proprietary silicon in terms of hardware. Furthermore, Dorsey went on to discuss the importance of focusing more on vertical integration and silicon design, which he believes is excessively concentrated among several organizations.

Block is also working to improve mining dependability and user experience, according to Templeton.

Templeton mentioned in a tweet, “Common issues we’ve heard with current systems are around heat dissipation and dust. They also become non-functional almost every day, which requires a time-consuming reboot. We want to build something that just works.” Moreover, he also added, “They’re also very noisy, which makes them too loud for home use.”

The vision of this project includes the democratization of Bitcoin mining access. In October 2021, Dorsey mentioned, “Mining isn’t accessible to everyone. Bitcoin mining should be as easy as plugging a rig into a power source. There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves.”

Block’s news comes only months after the United States overtook China as the globe’s top Bitcoin mining destination for the first time. Renewable energy sources are abundant in the United States.

Hydropower mining farms exist in Washington State. New York generates more hydroelectric energy than all the other states east of the Rocky Mountains, and its nuclear power plants contribute to the state’s objective of zero-carbon electricity. Nevertheless, Texas’ renewable energy contribution is increasing over time, with wind power accounting for 20% of the state’s power in 2019. In addition, the Texas grid keeps adding more solar and wind power at a rapid pace.

Texas also has a deregulated electric grid with true spot pricing that allows users to pick between power suppliers, as well as pro-crypto political leaders. Those are ideal conditions for miners looking for a warm welcome and inexpensive energy.

The co-founder of crypto mining operator Core Scientific, Darin Feinstein, mentioned, “If you’re looking to relocate hundreds of millions of dollars of miners out of China, you want to make sure you have geographic, political, and jurisdictional stability. You also want to make sure there are private property rights protections for the assets that you are relocating,”

One thing is for sure if Dorsey manages to pull this off, it’s going shake up the Bitcoin network quite a bit!

 

Key Takeaways

 

  • Payments start-up founded by Jack Dorsey Block (previously Square) has announced that it would begin mining Bitcoin.
  • Thomas Templeton, Block’s hardware general manager, set out the firm’s next actions in a series of tweets.
  • “From buying, to set up, to maintenance, to mining,” Templeton adds, the goal is to make Bitcoin mining — the method of creating new Bitcoins by solving increasingly hard computing tasks — more dispersed and efficient in every aspect.
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Author: Jason Donaldson