Square Might Build a Bitcoin Mining System, According to Jack Dorsey

Jack Dorsey, the CEO of Twitter and Square, has more plans in the works for building out the Bitcoin network. Dorsey just announced that Square – the financial services company – is considering creating a Bitcoin mining system to decentralize mining worldwide.

Decentralizing Mining for People and Business

The Twitter CEO confirmed his plans in a thread on Twitter earlier today, explaining how his system will work and why it’s necessary. His ideal system would use “custom silicon” (specially customized ASICs) and open-source development. Like Square’s hardware wallet that they are still creating, it would be designed in open collaboration with and for the community.

Dorsey explains that mining needs to be more distributed to maintain the Bitcoin network’s security over time. Mining is currently a challenging industry to access due to the massive hash power required to generate meaningful returns. Bitcoin mining was highly concentrated in China until recently, though it has spread to other areas since China’s mining ban.

jackdorsey_coverJack Dorsey, Twitter & Square CEO

Furthermore, Dorsey says that mining needs to be more energy efficient. Though the Chinese ban has also helped drive out coal from the industry, it still needs work in this regard. About half of the network’s hash rate uses renewable energy sources – a growing number.

Dorsey also believes that Silicon design is too concentrated at the moment, creating overconcentration of supply. Combined with a lack of vertical integration in the industry, he labels mining as inaccessible for average people.

“There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves. What are the biggest barriers for people running miners?” asked Dorsey of his followers.

The Square team has already begun their technical investigation into their new project, led by Jesse Dorogusker. Dorogusker says his team will start by “prototyping more efficient silicon, hashing algorithms, and power architectures.”

Jack Dorsey’s Bitcoin Mission

Despite his other accomplishments, the CEO of Twitter considers Bitcoin the most important work of his life. He even wished it would ‘create world peace’ in a live conversation with Elon Musk this July.

As such, he is dedicated to increasing adoption and infrastructure using his companies Twitter and Square. His latest innovation came in a Twitter update last month, allowing US users to tip one another in Bitcoin.

Publication date: 
10/15/2021 - 22:23
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