Block (formerly Square), a U.S. financial technology firm founded by Jack Dorsey, has partnered with Core Scientific, a leading Bitcoin mining operator, to boost the firm’s mining capacity and advance decentralization in Bitcoin mining, according to a press release published today.
The collaboration targets enhanced decentralization and efficiency in Bitcoin mining, providing more miner options for various companies in the future.
“This agreement is a good example of how we envision our mining products pushing forward the advancement and decentralization of the mining industry,” said Thomas Templeton, Lead of the Proto team at Block.
As part of the collaboration, Core Scientific will be the first to deploy Block’s new 3nm ASIC mining chips, designed by Block’s Proto team. The report stated that the agreement is also one of the largest Bitcoin mining ASIC deals in terms of hashrate.
Miners Still Doing Well
With an estimated additional 15 EH/s, the 3nm mining ASICs are expected to boost the miner’s mining operations. Core Scientific’s current capacity is 24.6 EH/s.
In addition to supporting Core Scientific’s hashrate growth strategy, the partnership is aimed at bringing more miner options to the mining market. The two entities look to “define a new paradigm for scaled Bitcoin mining” while “contributing to the longevity and vitality of the Bitcoin Network,” according to Core Scientific’s Chief Development Officer Russell Cann.
Block’s new ASIC chips will be integrated into a modular mining platform for optimal use in data centers, the team noted.
The platform, co-designed with ePIC Blockchain Technologies, is set to simplify infrastructure requirements for large-scale mining operations like Core Scientific’s. Its design will focus on sustainability with existing infrastructure.
”By integrating Block’s cutting-edge ASIC chips with an eye toward integration into Core Scientific’s advanced infrastructure, we are set to deliver a modular mining platform that redefines expectations for efficiency and reliability in large-scale operations,”
said Earl Mai, CTO of ePIC Blockchain Technologies.
Decentralization And Transparency
Block’s mining initiative, Proto, is on a mission to make the Bitcoin network more decentralized and transparent. One of the efficient ways to achieve that goal is to make mining chips more accessible. Bitcoin mining will never get easier. So hardware matters.
The Proto team also builds open-source mining tools and software, including the Mining Development Kit (MDK), and enables third parties to develop solutions using their mining chips. The team expects to expand the Bitcoin mining hardware ecosystem.
Core Scientific has been mining Bitcoin since 2017 and has been among the most prominent mining operators in the world. In addition to its core Bitcoin mining business, Core Scientific has expanded into the artificial intelligence (AI) market.
The company recently announced a 12-year agreement with cloud provider CoreWeave to provide infrastructure for AI applications and machine learning. The deal is valued at around $3.5 billion.
Meanwhile, Block has been known for Square and Cash App, and recently, its expansion into Bitcoin mining. Motivated by the global chip shortage’s impact on Bitcoin mining, Block began developing its own mining chips in late 2021.
By early 2023, Block had designed a 5nm chip and aimed to make mining technology “open source” through selling ASICs and hardware components. This may be important going forward.
In April this year, Block announced it completed the development of its 3nm chips. The chips aim to improve processing power and reduce energy consumption in mining hardware. The company said its next target would be to develop a Bitcoin mining rig.
The company is concerned about the current concentration of Bitcoin mining technology in a few companies, particularly after the fourth halving, which accelerates consolidation and increases centralization risks. The company seeks to offer mining solutions to enhance decentralization.
