The CEO of Twitter and Square, Jack Dorsey, has revealed that Square was exploring building a bitcoin mining system that would make mining more accessible to people. Square would develop the system in addition to its hardware wallet, which is already under development.
A Necessary System
Dorsey took to Twitter to confirm his plans in a thread, going on to explain exactly how his system would function and why it is necessary. He stated that his ideal system would utilize “custom silicon” (especially customized ASICs) and open-source development. Dorsey stated that his system would be similar to Square’s hardware wallet, designed in open collaboration with the community.
Mining Needs To Be More Distributed
According to Dorsey, in order to maintain the Bitcoin network’s security in the long run, the process of mining needs to be more distributed. Currently, Bitcoin mining has a very high barrier of entry, thanks to the large amounts of hash power required to generate any significant returns.
Until recently, Bitcoin mining was heavily concentrated in China, but with the government’s crackdown on cryptocurrencies in China, there has been an influx of bitcoin miners and mining operations into other areas of the world.
Dorsey also stressed the importance of mining becoming significantly more energy efficient. The ban on mining in China has helped to reduce the amount of coal used by the mining industry. However, Dorsey stressed that there is still a considerable amount of work left in this area. Currently, only about half of the Bitcoin network’s hashrate uses renewable energy sources, although the number is steadily growing.
Dorsey took to Twitter to highlight Bitcoin’s need to be more energy-efficient, stating,
"Mining needs to be more efficient. 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. What are the largest opportunities here?"
Dorsey believes that currently, Silicon design is too concentrated, creating an overconcentration of supply. Dorsey believes that these factors, coupled with a lack of vertical integration in the industry, make mining inaccessible for the average person.
“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?”
Dorsey’s Focus On Bitcoin
The team at Square has already started the technical investigation required for the new project, with the team being led by Jesse Dorogusker. Despite other accomplishments, Dorsey currently considers Bitcoin his most important work and has dedicated himself to increasing bitcoin adoption and infrastructure through Twitter and Square.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.