Block (formerly Square) is building a system for Bitcoin miners

Jack Dorsey, co-founder and CEO of Twitter Inc. and Square Inc., speaks at the Bitcoin 2021 conference in Miami, Florida, U.S., Friday, June 4, 2021.

Eva Marie Uzkatgui | Bloomberg | Getty Images

Jack Dorsey’s Payment Company blockage (Formerly Square) will start mining Bitcoin.

In a series of tweets, Block’s general manager of hardware, Thomas Templeton, laid out the company’s next steps.

The goal, Templeton said, is to make bitcoin mining — the process of creating new bitcoins by solving increasingly complex computing problems — more decentralized and efficient in every way, “from buying, setting up, maintaining, and mining.” .

According to Templeton, the idea of ​​making the mining process more accessible goes beyond just creating new bitcoins. Instead, he said the company sees this as a long-term need for a fully decentralized and permissionless future.

“Mining needs to be more decentralized,” Dorsey wrote in an October tweet. when he first came up with the idea. “The more decentralized, the more resilient the Bitcoin network is.”

To that end, the company is addressing a major barrier to entry: Miners are hard to find, expensive, and deliveries can be unpredictable. Block said it was open to building new ASICs, specialized equipment used to mine bitcoin.

The project is incubating in Block’s hardware team, which is starting to form a core engineering team of system, ASIC and software designers led by Afshin Rezayee.

On the hardware side, Dorsey previously tweeted The company is considering a “custom silicon-based bitcoin mining system.” Dorsey went on to share his thoughts that more attention needs to be paid to vertical integration as well as chip design, which he said is too concentrated in a few companies.

Block also wants to improve the reliability and user experience of mining, Templeton wrote.

“The common problems we hear with current systems are heat dissipation and dust. They become non-functional almost every day, which requires time-consuming reboots. We wanted to build something that would work,” Templeton tweeted. “They’re also quite loud, which makes them too loud for home use.”

The democratization of Bitcoin mining is an important part of the project’s mission statement.

“Mining is not for everyone,” Dorsey wrote in October. “Bitcoin mining should be as simple as plugging a rig into a power source. There is not enough incentive today for individuals to overcome the complexities of running their own mining rigs.”

Block’s announcement comes months after U.S. overtakes China first It has always been the preferred destination for Bitcoin miners in the world. The United States is also awash in renewable energy.

Washington State is a Holy Land of Hydro-Mining. New York Generate more hydroelectric power More than any other state east of the Rocky Mountains, and its nuclear plants will achieve its goal of 100 percent carbon-free electricity.At the same time, Texas’ share of renewable energy has grown over time, with 20% of electricity comes from wind As of 2019.The Texas grid also continues to fast Add more wind and solar.

Texas also has a deregulated grid, has real-time spot pricing, lets customers choose between electricity providers, and, crucially, has a pro-crypto political leader. These are dream conditions for miners who want a popular and cheap source of energy.

“If you want to move hundreds of millions of dollars of miners out of China, you need to ensure geographic, political and jurisdictional stability. You also need to ensure private property protection of assets that you are relocating,” said cryptocurrency mining operator Core Scientific co-founder Darin Feinstein said.