Jack Dorsey reveals square’s Plans To Build A Bitcoin Mining Station

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Jack Dorsey, the CEO of Twitter and Square, announced that Square was looking into developing a bitcoin mining system to make mining more accessible to the general public. Square would work on the system alongside its hardware wallet, which is already in the works.

A Required System

Dorsey confirmed his ideas in a thread on Twitter, describing how his system would work and why it is vital. According to him, his ideal system would include “custom silicon” (particularly customized ASICs) and open-source development. Dorsey indicated that his technology would be akin to Square’s hardware wallet, created in open community cooperation.

Mining Requires a More Distributed Approach

According to Dorsey, the mining process needs to be more spread to sustain the Bitcoin network’s security in the long run. Due to the massive amounts of hash power required to earn significant rewards, Bitcoin mining currently has an extremely high entry barrier.

Bitcoin mining was previously centered in China, but due to the Chinese government’s crackdown on cryptocurrencies, there has been an influx of bitcoin miners and mining companies in other parts of the world.

Efficiency in Energy

Dorsey also emphasized how critical it is for mining to become much more energy-efficient. China’s mining prohibition has aided in reducing the amount of coal utilized by the mining industry. However, Dorsey emphasized that there is still a lot of work to be done in this area. Currently, renewable energy sources account for around half of the Bitcoin network’s hashrate, albeit this percentage is rapidly increasing.

“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 used Twitter to emphasize the need for Bitcoin to be more energy-efficient, writing,

“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?”

According to Dorsey, Silicon design is today overly concentrated, resulting in an overconcentration of supply. According to Dorsey, these limitations, combined with the industry’s lack of vertical integration, make mining inaccessible to the common individual.

Dorsey’s Bitcoin Focus

Jesse Dorogusker, who leads the Square team, has already begun the technical examination required for the new project. Despite his past achievements, Dorsey considers Bitcoin to be his most significant project at the moment and has dedicated himself to boosting bitcoin usage and infrastructure through Twitter and Square.

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