Block Shifts Focus to Developing Full Bitcoin Mining System with Custom Silicon Chip and System Design
Block, the payments company founded by Jack Dorsey, has made a significant shift in its focus from designing chips to developing a full Bitcoin mining system. In a recent blog post, Block announced the successful design of a standalone three-nanometer (3nm) Bitcoin mining chip and revealed plans to collaborate with a leading global semiconductor foundry to finalize the chip’s design.
The company’s mining project goes beyond chip development, as it aims to expand its efforts to include system design as well. Block’s goal is to support mining decentralization by offering both a standalone mining chip and a full mining system of its own design.
One of the key motivations behind Block’s initiative is to decentralize the supply of mining hardware and the distribution of hashrate in the Bitcoin network. By addressing concerns over network stability and hardware vulnerabilities, the company hopes to improve the overall mining experience for operators.
Jack Dorsey has previously hinted at the possibility of a Bitcoin mining system based on custom silicon and open source, emphasizing the need for more vertical integration and diversification in silicon design. The latest development from Block comes shortly after the most recent Bitcoin halving, which reduced the issuance of new Bitcoin by half.
In addition to its mining efforts, Block’s venture arm has also backed Gridless, a company operating Bitcoin mines powered by renewable energy sources in Kenya, Malawi, and Zambia. Gridless has found innovative ways to power its operations and bring electricity to rural homes, utilizing a combination of solar power and energy from geothermal sources.
Overall, Block’s foray into Bitcoin mining represents a significant step towards supporting mining decentralization and promoting the use of renewable energy sources in the cryptocurrency sector. As the company continues to develop its mining system, it aims to address common challenges faced by miners and contribute to the resilience of the Bitcoin network.
