Jack Dorsey’s Block Inc. planning For Bitcoin Mining SystemShreya
Recently it was discovered that around 90% of Bitcoin has already been mined out of its hard limit of 21 million tokens. This news caused disruption in the Bitcoin mining industry as the miners were left to wonder about the future of Bitcoin mining.
Bitcoin miners were curious about how much time it would take for the remaining Bitcoin to be mined and if the process of mining will still remain profitable in the coming years. Luckily, it was discovered that the remaining 10% of Bitcoin will take over 100 years to be mined as the reward for mining new blocks continues to decrease every year.
While the number of Bitcoin a miner receives for mining a new block on the blockchain is decreasing, the value of Bitcoin has increased exponentially. As a result, the Bitcoin mining process remains profitable even if there is a limited amount of tokens left to be mined. Moreover, the technological advancements are likely to bring new variations in the mining industry keeping Bitcoin mining alive and rewarding.
Moreover, Block founder and CEO Jack Dorsey have given his vote of approval by announcing the project’s plan to build an open Bitcoin mining system. This news was widely appreciated by the Bitcoin miners community as it suggests that innovation is happening in the industry, and the mining industry will continue to bloom.
Open Bitcoin Mining System by Block Inc.
Last year in October, Jack Dorsey hinted that Block Inc is considering building a Bitcoin mining system out in the open along with the community. This news caused a wave of appreciation among the mining industry as this new Bitcoin mining system would make it possible for new miners to join the process with ease.
Luckily, earlier this week on January 14th, Jack Dorsey and Thomas Templeton, the company’s general manager for hardware, confirmed the news by tweeting “We’re officially building an open bitcoin mining system.”
Block wants to make Bitcoin, the largest cryptocurrency by market value, more distributed and efficient. Currently, Bitcoin operates on a Proof-of-Work algorithm that requires miners to solve complex computations to generate new blocks, validate transactions, and earn Bitcoin. However, this process is filled with pain points making the Bitcoin mining process unoptimized.
Block aims to address these challenges, including mining rig availability, reliability, high price, and power consumption.
“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,” Templeton tweeted. “How can we make it so that anyone, anywhere, can easily purchase a mining rig?” he added. “We want to build something that just works. What can we simplify to make this a reality?”
He further added that Block is building a team of hardware engineers and designers to simplify the Bitcoin mining process. “Developing products is never a solo journey, and evaluating existing tech is always part of our practice,” Templeton said.
What does it mean for Bitcoin Miners?
Block wants to make Bitcoin mining more efficient and distributed in all its operations, such as purchasing crypto mining hardware, maintaining mining. The project believes that the Bitcoin mining process isn’t only about creating new blocks on the blockchain and has the potential to become a long-term need for the cryptocurrency future where everything is permissionless and decentralized.
As per the announcement, Block will consider the following agendas while creating a new open Bitcoin mining system.
- The company Block Inc is focusing primarily on two concerns. The first one is the pain points faced by Bitcoin miners and the second is the technical challenges of the Bitcoin mining industry.
- Moreover, Templeton believes that the customers face four major problems in the process of mining cryptocurrencies.
- These challenges include the difficulty in acquiring mining rigs because of scarcity, exorbitant prices, and delivery restrictions. The company aims to make mining rigs readily available for everyone.
- Another challenge is heat dissipation & dust and the time-consuming process of maintenance that mining rig regularly requires. By making the rigs more efficient, Block aims to address this challenge.
- Moreover, the sub-adequate performance of the mining rigs, loud noise, high power consumption, and heat dissipation make the rigs unfit for home and residential locations. Block will create the right balance of performance and other factors to allow users to mine Bitcoin from home.
- The open Bitcoin mining project will evaluate options of different IP blocks, open-source miner firmware, and other system software to develop new ASICs.
The open Bitcoin mining system by Block Inc will surely bring a revolutionary change in the Bitcoin mining industry by making Bitcoin mining more efficient, profitable, and accessible.
The Bitcoin mining industry has gradually been developing at a quick pace, with new miners looking to bank on this rewarding opportunity. While there is only 10% of Bitcoin left to mine, the industry is far from saturation and will continue to develop rigorously in the coming years.