Ex-Twitter CEO Jack Dorsey’s digital payments firm Block has revealed that it has developed a prototype design for a new Bitcoin mining chip using five-nanometre (5nm) technology. The chip is seen as a key factor in promoting the decentralization of Bitcoin mining rigs.
In a recent blog post, Block explained that the process of creating Bitcoin mining ASIC rigs is complex and expensive, which has led to a concentration of custom Bitcoin mining silicon in the hands of a small group of companies.
Block argues that this centralization is detrimental to both miners and the Bitcoin network as a whole.
To combat this issue, Block plans to make Bitcoin mining technology open source by selling standalone ASICs and other hardware components. This strategy aims to foster innovation and promote the growth of the Bitcoin mining hardware ecosystem.
Block has been working on developing new designs for more efficient and affordable Bitcoin mining chips in recent months.
The company’s efforts have been bolstered by a large purchase of ASIC chips from Intel, which recently announced that it will no longer accept new orders for its Blockscale 1000 Series ASICs after October 20, 2023, as part of its cost-cutting measures.
Block’s acquisition of a large batch of ASIC chips from Intel will enable the company to accelerate the development of its proprietary 3nm chip, which it claims will be the most advanced chip of its kind once released. With this new development, Block can now focus exclusively on cutting-edge 3nm ASIC development.
The decentralization of Bitcoin mining rigs and the open-sourcing of Bitcoin mining technology are part of Block’s efforts to promote innovation and support the Bitcoin network. By enabling more people to participate in Bitcoin mining, Block hopes to foster a more diverse and decentralized ecosystem.
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