Block, formerly known as Square, draws up plans for a Bitcoin mining system

  • Block, the former Square payments company, has set out plans for a Bitcoin mining system, in line with its recently announced blockchain venture.
  • The company will address various miner pain points such as availability, reliability, and performance of mining equipment.

The payments company Square payments, led by former Twitter CEO Jack Dorsey, changed its name to Block in December 2021 to expand its focus on blockchain technology. The fintech firm is looking to create an open Bitcoin (BTC) mining system, according to a tweet Thursday from Dorsey. This reflects his statement in October regarding Block ‘s consideration of developing a Bitcoin mining system based on custom silicon and open source technology.

Hardware block CEO Thomas Templeton said mining will not only create new Bitcoin, but also specify decentralized and unauthorized systems.

We want mining to be more distributed and efficient in every way, from purchasing to setup to maintenance to mining. We are interested because mining goes far beyond the creation of new bitcoins. We see it as a long – term need for a fully decentralized, unauthorized future.

Bitcoin Mining Niche Block Fills

In addition, he presented Block plans, developed from the challenges facing the mining community. Miner feedback highlights the availability of mining equipment as a key sticking point in the industry. Devices are difficult to find, expensive to install, and their delivery system is faulty.

The second problem is the reliability of the mining rigs. Here, Templetown highlights heat and dust management issues. Mining hardware requires cooling mechanisms, such as negative pressure fans, to prevent performance reduction, overheating, and resulting damage. In addition, the equipment requires aids such as screens and grids to reduce dust accumulation and prevent blowback. Miners also reported that computers crashed almost daily, wasting valuable time during a restart.

The third concern, according to Templeton, is performance in terms of power consumption and noise pollution. The noise makes most of this equipment unsuitable for home use, he adds. These observations coincide with some of the problems of registered mining electricity in some countries.

Iran, for example, had to ban Bitcoin miners for three months due to major power outages. The country’s miners are required to work with a license and pay extra fees for their high energy consumption. Yet the country continues to regularly cut power to the miners, citing an overburdened power grid.

A panacea for cryptocurrency miners

In November, Swedish regulators called for a ban on proof-of-work (PoW) cryptocurrency mining, even with resistance from the country’s power company. In addition, US Senator Elizabeth Warren has repeatedly attacked Bitcoin mining operations.

Not surprisingly, all miners want lower power consumption and higher hashrates.

Regions like Kazakhstan, El Salvador, and the US states of Wyoming and Texas have attracted Bitcoin miners because of affordable energy rates.

Block has begun conducting various investigations to solve the above obstacles. The company has already created a specialized team composed of engineers from various fields.

Jean Simmons

Jean Simmons has been a cryptocurrency enthusiast since 2014 and has been dedicated to the topic on a daily basis since she first learned about Bitcoin and blockchain technology. Besides cryptocurrency, Jean studied computer science and worked for two years at a blockchain startup. At Mercayala, he is responsible for technical issues. His goal is to bring cryptocurrencies to the world in a simple and understandable way.

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