Apr 24, 2024 at 12:43Block, formerly Square, under the leadership of CEO Jack Dorsey, has embarked on the development of a comprehensive Bitcoin mining solution, aiming to address the challenges encountered by mining operators in the industry.
In a recent blog post on April 23, Block revealed its progress in designing a three-nanometer chip specifically tailored for Bitcoin mining. This achievement has paved the way for the announcement of a complete Bitcoin mining system by the company.
The initiative stems from Dorsey’s proposition in October 2021, advocating for a collaborative approach to decentralize Bitcoin mining. Block’s decision to delve into mining system development reflects its commitment to supporting mining decentralization and addressing industry challenges.
Previously, Block had unveiled a prototype design of a five-nanometer BTC mining chip in May 2023, highlighting concerns about the centralization of chip development within a few companies and its adverse effects on the ecosystem.
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Seeking to gather insights and feedback from the mining community, Block has called for input on various aspects, including challenges in purchasing miners, maintenance issues, transparency concerns, and software-related hurdles.
The move comes amidst developments in the semiconductor industry, with Intel’s announcement in 2023 regarding the discontinuation of its Blockscale 1000 Series ASIC mining chips, signaling a shift in market dynamics.
Furthermore, the recent Bitcoin halving event on April 19, which reduced the block reward from 6.25 BTC to 3.125 BTC, is expected to impact the mining landscape, intensifying competition among miners for reduced rewards until the next halving cycle, anticipated in approximately four years.
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