Block Unveils Plans to Develop Comprehensive Bitcoin Mining System to Tackle Industry Challenges
Summary:
Block, previously known as Square, has outlined plans to develop a comprehensive Bitcoin (BTC) mining system in order to tackle the hurdles faced by mining operators. The firm has already produced a three-nanometer chip for BTC mining and aims to decentralize the mining process. The proposal comes amidst a call for more community input on potential challenges, and follows the recent halving of Bitcoin, which has decreased the block reward for miners.
The payment solutions company, Block, which was previously Square, is set to design a Bitcoin (BTC) mining mechanism to address the issues influencing mining operators. According to Block's blog post on April 23, the firm has successfully engineered a three-nanometer chip for BTC mining, and this accomplishment has led to an announcement about a comprehensive Bitcoin mining system. Jack Dorsey, the CEO of the company when it was still known as Square, proposed a partnership strategy to distribute Bitcoin mining operations more widely in October 2021.
Block mentioned that they engaged in extensive discussions with numerous bitcoin miners to discern the complications of the mining key operators. With the gathered insights and to fulfil their objective of endorsing mining decentralization, Block intends to launch an independent mining chip and a complete mining system, both of their design.
In May 2023, Block developed a prototype for a five-nanometer BTC mining chip and stated that the consolidation of chip design under a few corporations has detrimental effects on the ecosystem. The company called on the members of the mining community to contribute more feedback for the system and welcomed their thoughts on difficulties in buying miners, maintenance, clarity, and software issues.
Intel declared in 2023 that it anticipates terminating shipments of its Blockscale 1000 Series ASIC (application-specific integrated circuit) mining chips in April as a move to reduce costs. These chips are commonly utilized for mining proof-of-work-based cryptocurrencies, including Bitcoin.
The halving of Bitcoin on April 19 reduced the block reward for miners from 6.25 BTC to 3.125 BTC. As this event will possibly disrupt the market, miners will encounter stiff competition for lower rewards for the same effort until the next halving, slated for another four years.
Published At
4/23/2024 10:46:41 PM
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