Jack Dorsey says that Square is “considering” building its own Bitcoin mining system using custom silicon and open-source software.
Read: Vladimir Putin: “Cryptocurrencies Have A Right To Exist And Can Be Used For Settlements”
“Square is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide,” Dorsey wrote in a Twitter thread.
Square is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide. If we do this, we’d follow our hardware wallet model: build in the open in collaboration with the community. First some thoughts and questions.
— jack⚡️ (@jack) October 15, 2021
He added that such a project would follow a similar approach as the bitcoin hardware wallet Square began working on earlier this summer. But building a mining system would be considerably more complicated for the payments company than simply building a wallet. Creating custom chips is, as Dorsey points out, “very expensive,” and would be new territory for the payments company, which has been a major supporter of Bitcoin.
“Mining needs to be more efficient,” Dorsey wrote. “Driving towards clean and efficient energy use is great for Bitcoin’s economics, impact, and scalability. Energy is a system-level problem that requires innovation in silicon, software, and integration.”
Read: North Vancouver Will Be World’s First City Heated By Bitcoin
3/Silicon design is too concentrated into a few companies. This means supply is likely overly constrained. Silicon development is very expensive, requires long term investment, and is best coupled tightly with software and system design. Why aren’t more companies doing this work?
— jack⚡️ (@jack) October 15, 2021
As with his earlier tweets about plans for the hardware wallet, Dorsey didn’t share many details about how the mining system would actually work. But he said the goal would be to make mining more efficient and accessible to more people, which could address two of the most important issues related to cryptocurrency mining.
Bitcoin-related power usage has reached record highs in recent years, raising major concerns about the cryptocurrency’s impact on climate change. Mining has also driven up the prices and scarcity of GPUs, which has made it increasingly difficult for the average crypto enthusiast to mine on their own.
Read: Texas Senator Ted Cruz Proposes To Use Natural Gas For Bitcoin Mining
Our team led by @jessedorogusker will start the deep technical investigation required to take on this project. We’d love your thoughts, ideas, concerns, and collaboration. Should we do this? Why or why not? We’ll update this thread as we make our decisions. And now over to Jesse.
— jack⚡️ (@jack) October 15, 2021
“Bitcoin mining should be as easy as plugging a rig into a power source,” Dorsey said. Whether or not Square will be able to accomplish that, is less clear. He said that the company “will start the deep technical investigation required to take on this project,” and is hoping to hear feedback on the idea in the meantime.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
