- Block plans to enter the Bitcoin mining hardware game with its own range of equipment
- The company bought up a large number of Intel’s Blockscale ASIC mining chips
- Intel recently announced that it was ceasing the manufacture of the chips
Jack Dorsey’s Block plans to enter the Bitcoin mining hardware market following the purchase of a large number of Intel’s soon-to-be discontinued ASIC chips. Block made the announcement last week in a blog post, with the move signaling a shift in the company’s focus. Thomas Templeton, Block’s hardware lead, told CoinDesk in an interview that Block’s first branded products will come early next year as the company looks to challenge the big players such as Bitmain.
Block Finally Enters Bitcoin Mining Game
Block has apparently had plans to enter the mining space for some time, with the company initially planning to finalize the design of a 5-nanometer chip for Bitcoin mining. However, the purchase of Intel’s Blockscale ASIC chips has allowed the team to focus on a more powerful 3-nanometer design. The size of transistors in chip design determines the number of transistors that can fit on a chip, and the smaller the size, the more powerful the chip.
According to Templeton, the first tranche of Block’s ASIC products is expected to launch in early 2024, with the quantity of chips purchased being sufficient to bridge the gap until Block can design and produce its own 3-nanometer chips. The company aims to improve the decentralization of the Bitcoin network by providing tools for more miners to build and use.
Block Aiming to Improve Supply Chain
Templeton also noted that the main problem with the current Bitcoin mining hardware ecosystem is the diversity of manufacturing and supply chain, with the mining manufacturing industry being dominated by Bitmain and MicroBT at present.
In March, Block announced that it was working on a mining development kit, which will enable other engineers to create products using its chips. The company plans to open-source the technology and encourages the community to contribute to its development, hoping to unlock innovation in Bitcoin mining hardware in the process.