Jack Dorsey’s Block has sold its first 3-nanometer mining ASICs to Bitcoin miner Core Scientific, according to a July 10 statement.
The deal’s financial details have not been disclosed yet. However, the mining chips are expected to boost Core Scientific’s existing mining capacity of 24.6 exahashes per second by an additional 15 exahashes per second.
Also, this deal includes options for significantly more volume. It is one of the largest bitcoin mining ASIC agreements in the industry in terms of hashrate.
our first mining chip customer! https://t.co/JgdTEa8Cdj
— jack (@jack) July 10, 2024
Block’s ASIC Chips Promise Major Upgrades for Bitcoin Mining
The Proto team, which developed the company’s new 3nm mining ASIC chips, plans to produce chips that offer several improvements over current mining chips.
According to the announcement, Block’s chips are more efficient, reliable, and robust, making them better suited for large-scale Bitcoin mining.
“Together, Block and Core Scientific are working to define a new paradigm for scaled bitcoin mining, one designed to deliver important operational benefits while contributing to the longevity and vitality of the Bitcoin Network,” said Russell Cann, Core Scientific’s chief development officer.
Dorsey Seeks to Decentralize Bitcoin Mining Equipment Production
A cryptocurrency champion, Jack Dorsey rebranded his payments company Square to Block in 2021. Since then, Block has focused on tackling issues in Bitcoin mining, even showcasing a 5nm mining chip by Oct. 2021. Block announced in April that it would go beyond designing chips and create an entire Bitcoin mining system.
Jack Dorsey, a vocal Bitcoin proponent, is tackling two major challenges for the asset: hardware dependence and potential centralization. Through Block, Dorsey is pushing to diversify the manufacturing of mining equipment (currently dominated by China, a crypto-skeptic nation) and spread out the computing power used in mining.
This focus comes despite federal prosecutors launching a recent investigation into Square and Cash App, two central Block units.
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