The cryptocurrency trading revolution exploded more than ten years ago and led to an almost unprecedented economic and financial earthquake. As a result, people are learning to change their approach to payment and investment systems, pushing up the price of many cryptocurrencies. Such a rapid change has not gone unnoticed on the boards of the world's major central banks. In fact, in an increasing number of countries, central banks are working on launching centralized digital currencies, known as CBDC. This…
Jack Dorsey has begun yet another quest to expand the security and adoption of Bitcoin worldwide. His company Block Inc. has confirmed its plans to develop a global Bitcoin mining system.
The CEO confirmed the news in a tweet today, with a team member explaining details on the project in a thread.
A Mission To Decentralize Mining
According to Thomas Templeton – Block’s general manager for hardware – Block’s goal is to make mining “more distributed and efficient”. This includes every process from buying to setting up to maintaining mining.
We’re interested because mining goes far beyond creating new bitcoin,” said Templeton. “We see it as a long-term need for a future that is fully decentralized and permissionless.”
Last month, Dorsey published a Twitter thread on some rough considerations for Block (formerly Square) building this mining system. He said it would be made as a collaborative open-source project, as with the Bitcoin network. Last month, his company released a lightning network development kit similarly.
Templeton said that the system would focus on pain points in the mining market right now. These include the availability of mining rigs and their reliability against technical issues and maintenance. Energy inefficiency and noisiness were also factors limiting miners’ feasibility for home use.
The Block team is evaluating existing open-source miner firmware and various system software offerings. They may also create a new ASIC and are hiring a core engineering team of system, ASIC, and software engineers. This confirmed rumours from days ago when Block posted an open position on their LinkedIn for a similar role.
A Critical Project
With this, Block is now working on decentralizing the two most concentrated areas of the Bitcoin network. One aspect is the exchanges, with the other being mining.
Making mining efficient and feasible for the average person would reduce a 51% attack potential to virtually nothing. It would also take power away from influential mining organizations that attempt to split the community, as they did in 2017 with Bitcoin Cash.
Progress has already been made on this front. For example, when it ejected miners from China in May of last year, the geographical centralization of miners decreased significantly. Meanwhile, hash power has already returned to all-time highs, boosting security to unmatched levels.
Mining has also grown relatively clean, with recent miners now relying on renewable energy.