Jack Dorsey’s fintech company Block Inc. announced on Tuesday that it has completed the development of its advanced Bitcoin mining chip, marking an important milestone for the firm’s mining project.
Per a statement shared by Dorsey over Twitter, Block’s three nanometres (3mn) Bitcoin mining chip is now in the process of completing its full design tape out with a leading semiconductor foundry.
“Our mining chip will utilize the most advanced semiconductor process currently available and will deliver the performance required for mining operators of all types to survive and thrive in the fifth mining epoch (the period following the recent 4th halving of the block subsidy) and beyond,” wrote Block.
The fifth mining epoch officially began last Friday after Bitcoin block 840,000, notching Bitcoin’s fixed block subsidy down from 6.25 BTC to 3.125 BTC per block. Aside from changes in the price of Bitcoin and network transaction fees, this decrease marks a major cut to miner revenues, further necessitating that miners acquire the most energy-efficient equipment to stay effective.
Numerous public mining firms have noted that small-scale, at-home Bitcoin mining would get even more competitive after the Bitcoin halving, if not outright impossible to do economically.
Noting this trend, Dorsey announced his firm’s Bitcoin mining ambitions in early 2022, aiming to keep both Bitcoin’s hash rate and the distribution of mining hardware as decentralized as possible.
Block said that it is continuing to incorporate feedback from the Bitcoin and mining industry into its chip design. Upon launch, the company will become the first Bitcoin mining hardware vendor with a solution of its kind.
“We hope this will help unlock mining system innovation and support the much-needed development of new mining system form factors and use cases,” Block stated.
Furthermore, aside from the mining chip itself, the company is working on a full Bitcoin mining system of its own design. The company is still seeking design feedback on this system in areas related to reliability, maintenance, and software features.
Jack Dorsey and Block have aided Bitcoin development in several other ways, such as financing legal protection for Bitcoin developers, and pioneering Bitcoin-based tips over Twitter.
Block also unveiled its Bitcoin hardware wallet “Bitkey” last year, which provides multi-signature cold storage Bitcoin custody in a way that’s usable for crypto newcomers.