Jack Dorsey’s Block will develop a bitcoin mining system

The company has already unveiled a 3nm chip to mine the first cryptocurrency

24.04.2024 - 09:53

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3 min

What’s new? Payment company Block of X (formerly Twitter) creator Jack Dorsey has finalized the development of a 3nm chip for bitcoin mining and announced plans to create a mining system for the first cryptocurrency. The company said both products are designed to address the concerns of industry participants, which were identified through a lengthy consultation process, as well as support the decentralization of BTC mining.

Press release

What else is known? The company says its enhanced chip, built on previous designs, will deliver high performance for all miners “to survive and thrive” in the face of shrinking block mining rewards as a result of halving.

The fourth halving of the Bitcoin network took place on April 20, with payments to miners for mining blocks being cut from 6,25 coins to 3,125 coins. The event has occurred every four years since the network’s launch, with the next halving taking place in April 2028.

Last April, Intel announced it would stop shipping its Blockscale 1000 series chips by April this year as part of cost-cutting measures. Such chips are often used for mining cryptocurrencies, including bitcoin.

Block then purchased a large batch of chips from Intel and in May unveiled a prototype 5nm chip for BTC mining. At the time, it said that centralizing chip development in the hands of a few companies was hurting the ecosystem and asked the mining community to report problems they had encountered in purchasing and maintaining the rigs, as well as software bugs.

In a new plea, Block says that with a standalone mining chip, it will be the only major well-capitalized mining hardware provider to offer such a solution.

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The company will draw on its experience in product and software development, supply chain organization and tech support to create the bitcoin mining system. “We intend to use this experience to bring a compelling, differentiated mining solution to market,” the company said in a press release.

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