In a series of tweets released on his platform, the Twitter and Square CEO, Jack Dorsey, says the fintech firm is planning to build an open source Bitcoin mining system.
Dorsey went on to explain why he believes there is a need for an open source bitcoin mining solution, open to both individuals and business, and why he wants to follow a ‘collaborative’ approach to further decentralization through the Square Bitcoin mining program.
Open source Bitcoin Mining – Centralized social media kingpin says let’s decentralize more.
Going on to say that Mining needs to be more distributed, efficient, and the the current silicon development is too concentrated into a few companies, Jack appears to be championing the idea that vertical integration of mining, whilst simultaneously being the CEO of one of the biggest and most centralized social media companies in the world, who’s track record of banning those it doesn’t agree with is a joke.
Mining needs to be more efficient. Driving towards clean and efficient energy use is great for Bitcoin’s economics, impact, and scalability. Energy is a system-level problem that requires innovation in silicon, software, and integration. What are the largest opportunities here?Jack Dorsey, Twitter and Square CEO on Open Source Bitcoin mining
According to the report Jesse Dorogusker, the hardware lead at Square, will put together a team to ‘investigate requisites for Square to take on the project’ to build an open source bitcoin mining system.
Dorsey says he thinks that further decentralizing the Bitcoin network is necessary for securely settling transactions even “…after the last bitcoin is mined.”
He says the proposed Square Bitcoin mining system will deliver energy-efficient mining solutions through silicon, software, and integration innovation, but that in his opinion, currently silicon chip design is too ‘concentrated in a few companies, leading to supply constraints’.
According to Dorsey, the company will build the mining system following a similar collaborative approach to develop its “assisted custody” BTC hardware wallet.
Silicon design is too concentrated into a few companies. This means supply is likely overly constrained. Silicon development is very expensive, requires long term investment, and is best coupled tightly with software and system design. Why aren’t more companies doing this work?Jack Dorsey on Square Bitcoin mining
“Bitcoin mining should be as easy as plugging a rig into a power source,” writes Dorsey in his twitter thread, an apparent nod to the idea of custom designed units, which are touted to reduce the vast power consumption currently required by the Bitcoin network. The Cambridge Centre for Alternative Finance estimates at 0.45 percent of the world’s entire electricity production is used to power the Bitcoin network, which has led to many, including Billionaire Elon Musk, saying that Bitcoin just isn’t green enough for his liking.
In fact, the whole issue of a more Green Bitcoin has been kicking about for a while now, and the more skeptical crypto enthusiasts might simply argue that Dorsey’s motivation to create an Open Source Bitcoin mining system is simply a way to capitalise on a move towards a reduction in energy consumption, and further the green energy agenda.