Jack Dorsey’s Block creating its own Bitcoin mining system
Jack Dorsey’s payment company, Block, formerly known as Square, is making a major move by escalating its efforts from merely designing chips to establishing a comprehensive Bitcoin mining system.
Advancements in Mining Chip Technology
Yesterday, Jack himself revealed they have successfully developed a standalone three-nanometer bitcoin mining chip. They are currently finalizing the design alongside a prominent global semiconductor foundry. This progression marks a significant leap from their previous focus solely on chip design, showing their commitment to enhancing their technological footprint in the bitcoin mining arena.
Block isn’t stopping at chip design; they have set their sights on an expansive project that aims to create a full bitcoin mining system. This decision stems from extensive discussions with a diverse group of bitcoin miners, which helped Block identify the myriad of challenges these operators face regularly.
Comprehensive Mining Solutions on the Horizon
The insight gained from these conversations has been pivotal. Block has expressed a strong intention to support the decentralization of bitcoin mining through not only the provision of a new mining chip but also by introducing an entire mining system tailored by their own engineers.
According to their press release, this initiative began with the creation of an advanced bitcoin mining chip aimed at decentralizing the supply of mining hardware and the distribution of hash rates. Having completed the three-nanometer chip, Block is now engaging in a full tapeout of the design, signaling a major milestone in their mining project.
Previously, Block developed a prototype of a five-nanometer mining chip and received silicon samples from their foundry partner last fall. These samples met their design goals and provided essential feedback that validated their architecture and design strategy, encouraging further development on the three-nanometer design.
The current design has demonstrated competitive performance, and as a result, Block is moving forward with the full tapeout. The advanced technology of their mining chip promises to deliver the necessary performance that will allow mining operators to not only survive but also thrive in the ongoing fifth mining epoch, which follows the recent fourth halving of the block subsidy.
Throughout the development process, Block has actively solicited and incorporated feedback from the mining community, focusing on addressing the real-world challenges encountered by miners. This includes issues related to pre-sales discovery, purchasing processes, reliability, maintenance, and software functionality.
Miners have reported various pain points, such as difficulties in evaluating potential mining hardware purchases due to a lack of sufficient data and transparency. Others have highlighted problems with the purchasing process itself, the reliability of mining hardware, and challenges in maintaining miner uptime.
Software shortcomings are also a significant concern, with many seeking enhancements that would improve their mining operations. Post-sale support is another critical area where miners feel improvements are necessary to ensure the longevity and efficiency of their mining activities.
With this feedback, Block plans to leverage its extensive product development, system engineering, supply chain management, and aftermarket support experience to deliver a unique and effective mining solution to the market.
They aim to be the only large, well-capitalized hardware vendor offering both a standalone mining chip and a full system, potentially revolutionizing mining system innovation and supporting the development of new mining system form factors and use cases.
