Block wants his mining rigs to be built to be cheaper, less maintenance and quieter than the current generation of hardware.
From consideration to reality in 3 months
In October, Square CEO Jack Dorsey revealed that the financial services company (now renamed Block) was “considering building a Bitcoin (BTC) mining system.”
Three months later and those considerations have become reality. Dorsey Twittered today in response to a Tweet thread from Block general manager of hardware Thomas Templeton the following:
“We are officially building an open Bitcoin mining system.”
According to Templeton, Block is working on a low-maintenance, affordable Bitcoin mining rig for everyday customers that is also quiet enough to use at home. Regarding reliability, Templeton wrote the following:
“Mining equipment stops working almost every day, requiring a time-consuming reboot. We want to build something that just works.”
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Block is not alone
Block says it’s not alone. However, Block has assembled a team consisting of system and software engineers and specialists in ASIC mining technology. He wrote the following:
“We are interested in performance, open source and our own elegant system integration ideas.”
Dorsey previously said the company could help create a mining system that is more energy efficient than current options. He tweeted in October:
“Energy is a system-level problem that requires innovation in silicon, software and integration.”
Aside from Dorsey’s hint in the fall, it’s little surprise that Block is venturing into hardware development for Bitcoin. The former CEO of Twitter is a Bitcoin maximalist. He has previously said that he would leave his CEO roles if Bitcoin needed him more.
“I don’t think there’s anything more important in my life to work on.”
Said Dorsey in June 2021 to the attendees at Bitcoin Miami. In November, Dorsey did indeed retire from his job as Twitter CEO. This gave him more time to focus on Square.
Within days, Square changed its name to Block, a reference to the blockchain technology that powers Bitcoin. Square’s Cash App, which facilitates Bitcoin purchases, has also ramped up its marketing campaign, reaching new audiences through Instagram and Twitter Bitcoin giveaways by celebrities such as Gwyneth Paltrow.
Square is not only working on Bitcoin mining. In mid-November, its TBD division released a white paper for a decentralized exchange for exchanging Bitcoin and fiat. And just this week, Cash App announced that it is integrating with the Bitcoin Lightning Network, which will allow people to send Bitcoin at lower transaction costs.