Block CEO, Jack Dorsey, said late Thursday that the company is moving forward with plans to establish a bitcoin mining system that will be open to consumers and businesses all over the world. The digital payments startup will look into how to make it simple for anyone, anywhere to buy a mining equipment as part of the project.
Block was considering constructing a mining system based on custom hardware, employing a open source style of working and sharing with the community, according to Dorsey in October.
He announced on Twitter on Thursday that they’re officially constructing an open bitcoin mining system. Thomas Templeton, Block’s general manager for hardware, laid out the project’s ambitions in a series of tweets published by Dorsey.
The goal, according to Templeton, is to make bitcoin mining, the most valuable cryptocurrency by market capitalization, more dispersed and efficient in every way, including purchasing, setup, and maintenance.
He explained that: “We’re interested because mining goes far beyond creating new bitcoin. We see it as a long-term need for a future that is fully decentralized and permission-less.”
According to Dorsey, a miner’s primary responsibility is to safely settle transactions without the use of third parties. He believes that the more decentralized the bitcoin network grows — that is, the less need for a middleman — the more resilient it will be.
Block attempts to address multiple customer pain points and technical issues in current mining rigs, including excessive cost, power consumption, and availability, according to Templeton.
“For most people, mining rigs are hard to find. Once you’ve managed to track them down, they’re expensive and delivery can be unpredictable. How can we make it so that anyone, anywhere, can easily purchase a mining rig? We want to build something that just works.”
The process of creating newly-minted bitcoins necessitates the use of specially built computer equipment, which can be costly and energy intensive.
Block’s plans to expand beyond its digital payments company into crypto, which occurred after Dorsey stood down as Twitter CEO, have been boosted by this move. For example, the old Square is forming TBD, a bitcoin-related financial services subsidiary.
According to a Fortune story, Block has made significant investments in bitcoin, holding over 8,027 of the cryptocurrency.
The Twitter co-founder has been a vocal proponent of the cryptocurrency and has stated that there is nothing more essential for him to work on in his lifetime.
The price of bitcoin is currently $41,934. In the last 24 hours, it has dropped 4%.