Jack Dorsey‘s payments company Block will begin mining bitcoin. In a series of tweets, Block Hardware General Manager Thomas Templeton outlined the company’s next steps.
“From buying to setting up to maintenance to mining,” Templeton explains, the goal is to make the mining process – which creates new bitcoins by solving increasingly difficult problems – more efficient and decentralized.
According to Templeton, creating more bitcoin isn’t the only goal of making the mining process more accessible. Instead, he says the company views it as a long-term requirement for a permissionless and decentralized future.
The first time Dorsey proposed the notion was in October, when he tweeted, “Mining needs to become more distributed.” “The more decentralized bitcoin becomes, the more resilient it becomes.”
Toward that end, the company addresses a major obstacle: mining rigs are difficult to find, expensive, and unpredictable in delivery. ASICs, or application-specific integrated circuits, could be developed by Block for bitcoin mining.
As part of the project, Block’s hardware group is assembling a core team of ASIC, software, and system developers under Afshin Rezayee.
Dorsey previously stated that the business was evaluating a “bitcoin mining system based on proprietary silicon” for hardware. As Dorsey said, more attention needs to be paid to vertical integration, and silicon design, which he thinks are excessively centralized among a few companies.
According to Templeton, Block is also working to improve mining reliability and user experience. The current system is plagued by heat dissipation and dust. They also become non-functional daily, prompting a time-consuming reboot.
In a tweet, he said, “We want to design something that is simple and does the job.” “They are also quite loud, making them unsuitable for home use.” Demonstrating bitcoin mining access is part of the project’s mission statement.
It should be as easy as plugging into a power outlet to mine bitcoins.” Dorsey said in a tweet. “We don’t have the motivation today to run miners ourselves.”
Block’s announcement comes just months after the United States became the world’s top bitcoin mining destination for the first time. The United States has abundant renewable energy sources.
In Washington State, there are many hydropower mining farms. As the only state east of the Rocky Mountains to generate hydroelectric power, New York produces zero-carbon electricity thanks to its nuclear power plants.
Likewise, Texas’s contribution to renewable energy is increasing as time goes on, with wind power accounting for 20% of the state’s electricity in 2019. A growing amount of wind and solar power is also added to the Texas grid.
The Texas power grid is also deregulated, with real-time spot prices that allow users to choose between power suppliers and pro-crypto politicians. Mineworkers looking for a warm welcome and inexpensive power will find those conditions ideal.
To migrate hundreds of millions of dollars worth of miners out of China, you want to make sure you have geographic, political, and jurisdictional stability. “You also want to make sure the assets that you are migrating are protected,” said Darin Feinstein, co-founder of bitcoin mining company Core Scientific.