Square is considering a possible new project: the development of a Bitcoin mining system.
On October 15, CEO of digital payments provider Jack Dorsey said in a Twitter thread that the mining system would be based on custom silicon and open source technologies, in which the miner would be built “in the open in collaboration with the community”.
Mining is how cryptocurrency comes into circulation. Computer and crypto puzzles are solved by machines to “earn” coins in exchange for verifying transactions on a blockchain, with the exchange being the power and PC resources needed.
However, as more coins are mined, requests for mining increase – and there may also be a limit on the number of coins allowed to enter circulation.
As with Bitcoin, there may be times when a typical PC cannot perform the tasks required to mine on its own – and this is where mining pools come in. Participants can pool compute resources to mine and then share in the profits.
At some point in the future there will be no more Bitcoin (BTC) to mine, with circulation capped at 21 million, and according to Dorsey there must be an improved and distributed way to mine the cryptocurrency. without the current complexities involved.
“The more decentralized it is, the more resilient the Bitcoin network becomes,” said the CEO. “Mining bitcoin should be as easy as plugging a platform into a power source. There aren’t enough incentives today for individuals to overcome the complexity of running a minor for themselves. ”
Additionally, Dorsey cited the power consumption required by cryptocurrencies as an issue that can be addressed with improved “silicon, software, and integration.”
Dorsey also said that due to the expense and time involved in developing silicon, only a handful of companies operate in the space, which, in turn, can lead to supply constraints.
A team at Square, with Hardware Lead Jesse Dorogusker at the helm, will investigate the technical requirements of the mining project. The team has requested user feedback and the Twitter feed will be updated with any new developments in the future.
Dorsey had previously hinted that a new cryptocurrency project was in the works, titled “TBD” in July of this year.
As of this writing, the price of BTC has reached $ 61,812, after recovering from a decline of $ 54,600 on October 13.
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