• Square’s Bitcoin Mining Station Plans Revealed by Jack Dorsey

  • Jack Dorsey, the CEO of Twitter and Square, revealed that Square was considering developing a bitcoin mining system that would make mining more accessible to people. Square plans to develop the system in addition to its hardware wallet, which is already in the works.

    A Required System

    Dorsey confirmed his plans in a thread on Twitter, going on to explain exactly how his system would work and why it is necessary. He stated that his ideal system would make use of “custom silicon” (particularly customized ASICs) and open-source development. Dorsey stated that his system would be similar to Square’s hardware wallet, and that it would be designed in open collaboration with the community.

    Mining Should Be More Distributed

    According to Dorsey, in order to keep the Bitcoin network secure in the long run, the mining process needs to be more distributed. Because of the large amounts of hash power required to generate any significant returns, Bitcoin mining currently has a very high barrier to entry.

    Until recently, Bitcoin mining was heavily concentrated in China; however, as a result of the Chinese government’s crackdown on cryptocurrencies, there has been an influx of bitcoin miners and mining operations into other parts of the world.

    Energy Conservation

    Dorsey also emphasized the importance of mining becoming much more energy efficient. The mining ban in China has contributed to a reduction in the amount of coal used by the mining industry. Dorsey, on the other hand, emphasized that there is still a lot of work to be done in this area. Currently, renewable energy sources account for approximately half of the Bitcoin network’s hashrate, though this figure is steadily increasing.

    Dorsey took to Twitter to emphasize the need for Bitcoin to be more energy-efficient, writing,

    “Mining must become more efficient. Increasing the use of clean and efficient energy is beneficial to Bitcoin’s economics, impact, and scalability. Energy is a system-level issue that necessitates breakthroughs in silicon, software, and integration. What are the most promising opportunities here?”

    Dorsey believes that Silicon design is currently too concentrated, resulting in an overconcentration of supply. Dorsey believes that these factors, combined with the industry’s lack of vertical integration, make mining inaccessible to the average person.

    “Today, there isn’t enough incentive for individuals to overcome the complexity of running their own miner.” What are the most significant impediments to people running mines?”

    Dorsey’s Interest in Bitcoin

    Jesse Dorogusker, the team leader at Square, has already begun the technical investigation required for the new project. Regardless of his other accomplishments, Dorsey considers Bitcoin to be his most important work and has dedicated himself to increasing bitcoin adoption and infrastructure through Twitter and Square.

    What's your reaction?