Block, the fintech-payments company co-founded by Jack Dorsey, recently announced its entry into the Bitcoin mining hardware market with the purchase of a significant number of BTC mining application-specific integrated circuits (ASICs) from Intel. The move will allow the company to accelerate its plans to create its own mining machines and improve the decentralization of the Bitcoin network as Intel discontinues its chip production.
Accelerating Plans with Intel’s ASICs
Initially, Block had intended to conclude the design of a 5-nanometer chip for Bitcoin mining this quarter and fabricate machines based on it. However, Block’s purchase of Intel’s ASICs has allowed the team to direct all of its efforts on designing its advanced 3-nanometer chips. These chips are deemed to be more efficient than their larger counterparts as they can perform more calculations within the same amount of space.
Bridge for Better Mining Hardware
According to CoinDesk’s interview with Thomas Templeton, the hardware lead for Block, the acquisition would be enough to bridge the time gap until the company can create and manufacture its own 3-nanometer chips. He stated that Block’s goal is to increase the number of tools available for individuals to construct and utilize within the Bitcoin network, ultimately advancing the decentralization of the network.
Improving Decentralization in the Bitcoin Network
Templeton said that the primary obstacle in Bitcoin mining is the broad spectrum of manufacturing and supply chains. In this context, Block plans to offer better tools that would resolve these issues and provide access to mining for a more extensive audience.
The manufacturing industry for BTC mining is presently dominated by MicroBT and Bitmain. With its entry into the market, Block aims to offer more options for users.
Open Sourcing Technology for Innovation
It should be recalled that Block just announced its development of a mining development kit last month. The kit is tailored to enable engineers to design products using the company’s chips.
The toolset will give developers a wide range of resources that can unlock new and innovative features for Bitcoin mining hardware. Moreover, the company is making this technology available to the public, allowing other community members to contribute to its development.
By pursuing an open-source approach to its technology, Block aims to promote innovation and improve the quality of mining hardware available for Bitcoin.
First-Party Products Coming Soon
Block’s first-party products are expected to be rolled out to the market early next year. By offering its own mining machines, the company hopes to usher in more options for users and improve the decentralization of the Bitcoin network. The purchase of Intel’s ASICs is just the first step in the company’s journey to becoming a major player in the mining hardware industry.
The purchase of Intel’s mining chips by Block is a significant development in the company’s plan to enter the Bitcoin mining hardware market. With this move, it will be able to accelerate the production of its own mining machines and compete with the current dominant players in the industry, namely Bitmain and MicroBT.
By acquiring a large number of ASICs from Intel, Block can bridge the time until it can develop and productize its own 3-nanometer chips, which is its ultimate goal. This means that the company can focus exclusively on the development of its own cutting-edge chips without worrying about the delay in bringing its products to the market.
Giancarlo is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations such as the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), Megaworld Corporation, and the China Banking Corporation in the Republic of the Philippines.
In addition to his civic and corporate pursuits, his forward-thinking approach has led him to manage several prominent websites in the banking and finance sector, notably the Australia-based RateChoice, where he immersed himself in the world of emerging financial technologies and where he found particular interest in Bitcoin all the way back to 2013.
Prior to his addition to Blockzeit’s dynamic team, he held an essential role as Project Manager for initiatives encompassing blockchain, stablecoin, mining, special economic zone development, and iGaming. This noteworthy chapter in his career unfolded under the auspices of InPlan Consultancy Services, Inc., the think-tank of IMPERO Consortium Management Corporation headquartered in Manila, Philippines, and Tokyo, Japan. InPlan, led by a distinguished retired Cabinet member of the Philippines, collaborates directly with IMPERO’s core management team, contributing to strategic planning and business development endeavors.