Robert Steinadler, a year ago
As the news spread that Jack Dorsey is going to leave Twitter it became clear that one of the strongest proponents of Bitcoin will focus on driving the success of the world’s first cryptocurrency. Dorsey’s other company “Block” which only recently rebranded and was formerly known as Square is aiming to become a true powerhouse that strives to innovate the Bitcoin space.
Block is about to enter a particular sector of the Bitcoin industry that builds its foundation. What can we expect from Dorsey’s plans to get involved into mining?
It was in October last year when it became clear for the first time that Block is going to enter Bitcoin mining. It seems that only three months later those plans are forming a shape. Block is going to design new Bitcoin miners and like to address problems that are very common with the ASIC miners that are available today.
There is a long list and a lot of space for improvements in various fields. Among them energy consumption and efficiency of current ASIC miners. Dorsey pointed out in the past that it would require an open mining standard that is tackling problems in three aspects. Namely silicon, integration, and software.
Indeed, companies interested in entering the mining industry have a hard time doing so. Mining hardware is hard to come by. It is very common that miners have to pay for their rigs in advance and have to wait long periods of time until the ASICs are produced and shipped.
This creates an entry barrier in the mining industry that is hard to overtake. Unlike mining particular altcoins Bitcoin mining is way more profitable using ASIC miners. Creating an open mining system would remove that pain and allow more investors and businesses to enter the Bitcoin space.
Creating an open mining system is ambitious but not the only effort of Dorsey. He is also looking forward to developing a hardware wallet through his company. Another power move is Dorsey’s initiative for a legal fund that is trying to protect intellectual property that is linked to Bitcoin and its development from malicious actors.
With all these projects in the making, it is clear that Dorsey indeed meant what he said when he announced during the Bitcoin 2021 in Miami that there is nothing more important in his life than to work on Bitcoin.
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