Jack Dorseys Block Hires to Develop Next Generation Bitcoin Mining ASIC

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In a recent job posting from Jack Dorsey’s Block, they are looking to hire a team dedicated to launching the “next generation” of bitcoin mining ASICs.

An ASIC (Application Specific Integrated Circuit) is a microchip that is custom designed for a particular use, rather than general use. In this case, Block plans to create an ASIC specifically designed for bitcoin mining.

In a discussion thread published in October 2021, Jack Dorsey outlined some fundamental questions alluding to what Block’s future development of a “Bitcoin mining system” might look like. In his discussion thread, he introduced the following five topics for further exploration:

1. Distribution of minors

Important Note: Not all distributed networks are the same. Distributed systems are measured on a spectrum, and networks like Bitcoin have varying degrees of distribution. For example, a network can be distributed among 3 peers, or it can be distributed among 100,000 peers. The more peers there are in the system, the less network participants depend on a small group of participants to “securely settle transactions,” as Dorsey put it.

2. Increase in mining efficiency

Dorsey says that “moving towards clean and efficient energy use is great for Bitcoin’s economy, impact and scalability.” This is something that has been an integral part of Block’s stance since April 2021, when they co-published a white paper with Ark Invest titled “Bitcoin is the key to an abundant and clean energy future.” In their research, they explain how Bitcoin provides a unique opportunity for the energy industry by acting as an energy buyer of last resort. Establishing a global floor price for energy allows us to build a more robust clean energy infrastructure with the assurance that any excess energy tapped during off-peak hours will always have a buyer.

3. The state of silicon production

The silicon design is a very expensive long term capital investment that creates a high barrier to entry for the industry. Having a small, highly concentrated set of suppliers means limited production and supply constraints. In his tweet, Dorsey says he thinks it would be best to combine the process of silicon design if it is closely associated with “software and systems design.”

4. Vertical integration

Dorsey believes that too few companies are focusing on vertical integration. Vertical integration is where multiple stages of the supply chain production process are integrated and wholly owned by a single company. This global process removes dependence on any external production factor that could create constraints and uncertainty in the overall production process.

5. Mining accessibility

While the popularity of building home mining facilities has certainly grown over the past year, bitcoin ASICs still have a long way to go before they can be considered simple plug-and-play technology. Dorsey says we need more incentives to “overcome the complexity” of bitcoin mining to make it accessible. Hopefully one day mining Bitcoin at home will be as easy as plugging in your toaster. In the future, engineers could create more solutions to recycle heat from domestic mining systems and integrate directly with existing domestic utilities such as HVAC or water heating systems.

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