Financial technology company Block has secured its first sale of newly developed 3-nanometer (3nm) mining chips. According to a July 10 announcement, Block will supply these advanced mining application-specific integrated circuits (ASICs) to Bitcoin mining firm Core Scientific.
While the financial details of the deal remain undisclosed, the purchase is expected to significantly boost Core Scientific’s mining capacity by nearly 15 exahashes per second (EH/s), adding to its current 24.6 EH/s.
Collaborative Development
The development of these new chips has been a collaborative effort between Block, ePIC Blockchain Technologies, and Core Scientific. Over the past few months, Core Scientific has provided crucial input for a modular platform designed to scale for various mining operators. Block’s Proto team, responsible for the company’s mining tools and wallet, spearheaded this collaboration.
“This agreement exemplifies our vision for advancing and decentralizing the mining industry,” said Thomas Templeton, head of the Proto team at Block.
Block’s Shift to Bitcoin Mining
Jack Dorsey’s Block, known for its popular payment platforms Square and Cash App, has been addressing challenges in Bitcoin mining since 2021, especially during the global chip shortage. In October 2021, Block began developing its own semiconductor chips and, by early 2023, completed a prototype for a 5nm Bitcoin mining chip. The company plans to make mining technology open source by selling standalone ASICs and other hardware components.
Efficiency and Decentralization
Bitcoin mining requires immense computational power to solve cryptographic problems, validate transactions, and secure the network. The new 3nm chips are designed to enhance mining hardware’s processing capabilities while reducing energy consumption. Block has previously noted that the ASIC rig development process is costly and complex. It also highlighted the issue of a small number of companies controlling a significant portion of Bitcoin mining technology, leading to centralization. The introduction of these new chips by Block aims to address these challenges and promote a more decentralized mining landscape.
Summary Review: Block’s sale of 3nm mining chips to Core Scientific marks a significant step in its efforts to innovate and decentralize the Bitcoin mining industry. This collaboration not only enhances Core Scientific’s mining capacity but also underscores Block’s commitment to overcoming the technological and resource challenges facing the mining sector.
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