Block continues to push forward in developing new Bitcoin mining hardware and ASIC solutions to address the industry's centralization issues.
Jack Dorsey, CEO of Block and former CEO of Twitter, has highlighted the concerns that excessive concentration of Bitcoin mining chips poses for the industry.
According to Dorsey, silicon technology, which enables the construction of today's advanced computer chips, is currently concentrated in the hands of a few global companies, such as Intel and Samsung.
To address these issues, Dorsey is working on developing a custom silicon-based Bitcoin mining project that will help decentralize the industry, making it more efficient and secure.
Block develops new Bitcoin mining ASIC system
Dorsey is one of the biggest proponents of Bitcoin and is known for his optimistic approach towards the cryptocurrency.
In 2021, Dorsey shared his vision for create a new Bitcoin mining system that is more decentralized and accessible to everyone. To do this, Dorsey set out to create a new open-source silicon-based Bitcoin mining technology through his company Block, in order to ensure that mining is more distributed.
At present, Block has made significant progress in building this new Bitcoin mining system, developing its own ASIC prototype.
In a publication Shared in late April, Dorsey explained that his team has managed to develop initial ASIC designs that are being competitively tested against the best devices on the market.
The silicon war and ASICs
The Bitcoin mining ASIC market is dominated by a small group of highly centralized companies that pose a barrier to entry for crypto miners and the broader community and a risk to the resilience of the blockchain network over time.
However, even though it is a challenging industry, Block has managed to enter with the vision to address the current centralization issues by introducing a new Bitcoin mining ASIC solution. The blockchain infrastructure and payment solutions company has experience in ASIC and semiconductor manufacturing and is using its expertise and resources to “optimize innovation and maximize the size of the Bitcoin mining hardware ecosystem,” Dorsey said.
Block has developed a prototype of a 5-nanometer (nm) Bitcoin mining ASIC, as outlined in its roadmap last year. However, in order to speed up its development, the company has purchased a batch of ASICs from Intel, one of the largest manufacturers in the semiconductor industry, which has threatened to stop the creation of new Bitcoin mining ASICs next year.
Block to develop 3nm ASIC prototype
The acquisition of ASICs from Intel makes Block's work easier and accelerates the development of its mining system.
Now Dorsey's company will focus on developing a more cutting-edge 3-nanometer Bitcoin mining ASIC (Nm).
According to Dorsey, the much smaller design will impact the performance of the blockchain network, resulting in lower energy consumption and cost reduction by making more efficient use of limited wafer space for the same computational output.
Furthermore, the open source approach that Dorsey wants to maintain in the design of his new Bitcoin mining system will allow for open building alongside the crypto community.
Continue reading: The next evolutionary leap of ASICs
