Jack Dorsey: Square’s next venture will be Bitcoin mining, following the company’s hardware wallet model
Square has begun work on an open-source Bitcoin mining system according to a Friday tweet from company founder and CEO Jack Dorsey. He believes that mining needs to be more distributed and efficient, arguing that silicon design is too concentrated on a few companies. He also said that mining isn’t accessible to everyone and should be as easy as plugging a rig into a power source.
Square is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide. If we do this, we’d follow our hardware wallet model: build in the open in collaboration with the community. First some thoughts and questions.
— jack⚡️ (@jack) October 15, 2021
Square might Build a Bitcoin mining system
So in addition to his hardware wallet, Dorsey may also be building a mining system geared towards the average person. The Twitter CEO explained that mining needs to be more distributed to maintain the security of the Bitcoin network over time. Mining is currently a challenging industry to approach due to the massive hash power required to generate meaningful profits. Bitcoin mining was heavily concentrated in China until recently, although it has spread to other regions since China’s mining ban.
According to him, mining needs to be more distributed.
“The core job of a miner is to secure transactions without the need for trusted 3rd parties. This is critical well after the last Bitcoin is mined. The more decentralized this is, the more resilient the Bitcoin network becomes”, he tweeted.
Furthermore, he argues that mining needs to be more energy-efficient. Although China’s ban has also helped to remove coal from the industry. However, this issue still needs to be studied. About half of the network’s hash rate uses renewable energy sources. And this number is increasing.
Source: Jack Dorsey/Twitter
Next, he also believes that Silicon design is currently too centralized, creating an over-concentration of supply. Combined with the lack of vertical integration in the industry, he argues that mining is inaccessible to ordinary people.
“There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves. What are the biggest barriers for people running miners?”, Dorsey stated.
At the present time, mining isn’t accessible to everyone. Therefore, Bitcoin mining should be as easy as plugging a rig into a power source. Square has not commented further on this, nor provided a timeline for the release of their minter.
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