Jack Dorsey’s Block to develop new Bitcoin mining chip – Square (SQ)

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Block, Inc (NASDAQ: SQ), formerly known as Square Inc, plans to create its own Bitcoin mining ASIC (application-specific integrated circuit).

What Happened: According to a recent job posting on LinkedIn, Block is looking to hire a custom digital design manager to join the team that will help create the “next generation” of microchips used to mine Bitcoin.

In a series of tweets in October 2021, Block CEO Jack Dorsey touched on some of the key features that would be included in the open source custom silicon-based Bitcoin mining system.

“Mining needs to be more distributed. The main job of a miner is to securely settle transactions without the need for trusted third parties. This is essential long after the last bitcoin has been mined. The more decentralized this is, the more resilient the Bitcoin network becomes, ”Dorsey said at the time.

Why it matters: The demand for Bitcoin mining, coupled with tense supply chains and a shortage of chips across the world, has led to a massive surge in the prices of ASICs (Application Specific Integrated Circuits) .

Zack Voell of Compass Mining estimates that ASIC prices jumped more than 25% at the start of the third quarter of 2021. “Obviously, whatever direction the price of bitcoin takes, ASIC prices will follow,” he said. Voell writes.

Dorsey’s goal with Block’s Bitcoin mining system will be to make mining more accessible to everyone. According to Block’s CEO, “mining Bitcoin should be as easy as plugging a platform into a power source. “

Price Action: On Tuesday morning, Bitcoin was trading at $ 41,822.52, gaining 2.18% in the past 24 hours.

Related Link: Why Jack Dorsey Says Bitcoin Will Replace The Dollar, Ethereum Is No Good

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