Jack Dorsey Block Announces Development Of ‘Complete Bitcoin Mining System’
Payments firm Block, formerly known as Square, has announced plans to develop a Bitcoin (BTC) mining system in response to the challenges faced by mining operators.
In an April 23 blog post, Block said it had completed development of a three-nanometer chip used for BTC mining, leading the firm to announce a “complete Bitcoin mining system.” Block – then Square – CEO Jack Dorsey suggested a collaborative approach to decentralizing Bitcoin mining in October 2021.
“We spent a lot of time talking to different bitcoin miners to identify the challenges mining operators face,” Block said. “Building on these insights and our goal of supporting decentralized mining, we plan to offer both a standalone mining chip and a complete mining system of our own design.”
Block completed the design of a five-nanometer BTC mining chip prototype in May 2023, arguing that the centralization of chip development in the hands of a few companies at the time was harmful to the ecosystem. The company asked the mining community to provide additional feedback to the system, asking them to comment on the challenges they encountered in the purchase of miners, maintenance, transparency and software issues.
Related: Jack Dorsey wants to decentralize Bitcoin mining with new investment
Intel announced in 2023 that it plans to stop shipping mining chips for its Block 1000 Series ASIC (application-specific integrated circuit) chips in 2023 as part of cost-cutting measures. Such chips are often used for mining, including Bitcoin.
Bitcoin's halving on April 19 reduced its block reward from 6.25 BTC to 3.125 BTC. Expected in another four years, until the next half-day, the event will shake up the market as miners compete for smaller rewards for the same work.
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