Square, the mobile payments company founded by Jack Dorsey, is preparing to bring bitcoin mining to a more environmentally friendly and accessible ring of light.
Square, the mobile payments company founded by Jack Dorsey, is preparing to bring bitcoin mining to a more environmentally friendly and accessible ring of light. Sharing a flood of tweets this week, Dorsey revealed that Square plans to build an open-source Bitcoin mining system that prints from custom silicon. According to the information in the statement, the open-source Bitcoin mining system will be implemented by Square's equipment leader Jesse Dorogusker. At this point, let us remind you that Square bought the adult share of Jay-Z's online music platform Tidal in March. With this acquisition, Dorogusker also started to manage the hardware side of Tidal. From Jack Dorsey's tweets, it seems that he is; Square will soon begin producing silicon chips for use in bitcoin mining. Bitcoin mining now proceeds through Asic (Application-specific integrated circuit) chips. Institutions and individuals who want to perform mining import these chips mainly from China. As explained by Jack Dorsey, applying a silicon chip is ideal for constructing a building that is both green and decentralized. But producing Silicon chips is costly and only a small number of companies are producing it. It seems but; Square is also preparing to take its place among these companies.
Why did Jack Dorsey and Square take this step?
It should be noted that with Asic chips and mining tools, China dominates the market in Bitcoin mining. Since the difficulty level is too high, it is no longer possible to mine with tiny USB chips as before. immediately the total computing power of the Bitcoin network is 131 M. T/h. We can say that the more miners an institution or country has, the more power it has in the Bitcoin network.
Although the Bitcoin network is built on a decentralized structure, institutions or countries that obtain 51 percent of the total network's computing power can have more polls in the Bitcoin market. For example, China's computing power was at 75 percent in 2019. While this rate was at the level of 44 percent in May, it fell to 0 percent in July, behind the bans.
The effect of bans in China on Bitcoin mining
Many miners took advantage of this opportunity. Although this process was plagued with logistical difficulties, mining equipment manufacturers have shifted their attention to North America and Central Asia. With larger Chinese miners also relocating to other countries such as Russia, Kazakhstan, and the United States, miners elsewhere filled the void. After China's bans, the miner rate in the US Bitcoin network increased to 35.4 percent. Kazakhstan and Russia, on the other hand, rank second after the USA with their high computing power. To be able to mine, you need to have energetic tools. For example, you may need to invest almost $10,000 to make a profit of about $40 a day. At this point, AntMiner devices produced by the Chinese company Bitmain come into play. We can say that Square will challenge the Chinese company by producing new generation mining devices. More US miners entering the market using these devices will begin to increase the power of their US companies in the Bitcoin network.