Block, previously known as Square, has revealed its intentions to create a Bitcoin mining system to address the challenges encountered by mining operators.
In a blog post dated April 23, Block unveiled the completion of a three-nanometer chip tailored for BTC mining. This milestone led to the announcement of a comprehensive Bitcoin mining system. CEO Jack Dorsey, back when Block was Square, proposed a collaborative effort to decentralize Bitcoin mining in October 2021.
Block Supporting Decentralization
Block emphasized its dedication to supporting mining decentralization. They stated, “We’ve engaged extensively with various bitcoin miners to understand the hurdles they face.” Block intends to provide both standalone mining chips and a complete mining system designed in-house.
In May 2023, Block developed a prototype of a five-nanometer BTC mining chip. They argued that centralized chip development posed risks to the ecosystem. Soliciting feedback from the mining community, Block sought insights on challenges like procurement, maintenance, transparency, and software issues.
Intel’s Announcement
In 2023, Intel revealed plans to halt shipping its Blockscale 1000 Series ASIC mining chips by April. This move was part of Intel’s cost-saving initiatives. ASIC chips, like those produced by Intel, are commonly utilized for mining proof-of-work cryptocurrencies such as Bitcoin.
The recent Bitcoin halving, occurring on April 19, reduced the block reward for miners from 6.25 BTC to 3.125 BTC. This event is expected to stir the market as miners contend for fewer rewards until the next halving, projected in approximately four years.
