Block’s ASIC Chips Promise Major Upgrades for Bitcoin Mining
On July 10, Block, Jack Dorsey’s company, announced that it has sold its first 3-nanometer mining ASICs to Bitcoin miner Core Scientific. The financial terms of the deal remain undisclosed. However, these mining chips are anticipated to significantly enhance Core Scientific’s current mining capacity of 24.6 exahashes per second by an additional 15 exahashes per second.
The agreement also includes options for much larger volumes, making it one of the most substantial Bitcoin mining ASIC deals in the industry based on hashrate.
Jack Dorsey celebrated the achievement by tweeting, “our first mining chip customer!”
Advancements in Block’s ASIC Chips
The Proto team at Block, responsible for developing these new 3nm mining ASIC chips, has designed them to offer multiple improvements over existing mining technology. According to the announcement, Block’s chips boast greater efficiency, reliability, and robustness, making them ideal for large-scale Bitcoin mining operations.
Russell Cann, Core Scientific’s chief development officer, remarked, “Together, Block and Core Scientific are working to define a new paradigm for scaled bitcoin mining, one designed to deliver important operational benefits while contributing to the longevity and vitality of the Bitcoin Network.”
Dorsey Seeks to Decentralize Bitcoin Mining Equipment Production
Jack Dorsey, a prominent figure in the cryptocurrency world, rebranded his payments company Square to Block in 2021. Since the rebranding, Block has been dedicated to addressing challenges in Bitcoin mining. By October 2021, the company had already showcased a 5nm mining chip. In April, Block announced its plan to go beyond chip design and develop a complete Bitcoin mining system.
Dorsey is targeting two significant issues: hardware dependence and the risk of centralization. Through Block, he aims to diversify the production of mining equipment, currently dominated by China, and distribute the computing power used in mining more broadly.
Despite these advancements, Block faces challenges. Federal prosecutors have recently launched an investigation into Square and Cash App, two key units of Block.
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