Jack Dorsey says Square is considering building an open source Bitcoin miner, using custom silicon, for individuals and businesses
Square Inc (SQ.N) Chief Executive Officer Jack Dorsey said on Friday the fintech firm is looking to build a bitcoin mining system based on custom silicon …
Context & Ripple Effects
Square had already moved from discussing a Bitcoin hardware wallet to committing to build one, making the mining proposal part of a broader effort to own more of the hardware layer around Bitcoin use. The later record shows the idea was not merely rhetorical: Block began building an open-source mining system and ultimately completed development of its own 3nm mining chip.
First-order effects
- Square expands its contemplated Bitcoin hardware footprint from custody to mining, putting custom silicon and an open-source system on its product-development agenda for both individual and business users.
Second-order effects
- Prospective mining-equipment buyers gain the prospect of a supplier positioned around openness and accessibility, while incumbent mining-hardware vendors face a potential new custom-silicon competitor if Square ships a system.
Third-order effects
- Block’s subsequent move from an open-source system to a proprietary chip points to mining becoming a broader infrastructure stack—hardware, silicon and software—rather than a market limited to finished machines.
The trend: Bitcoin-focused fintechs are extending from user-facing services into the underlying hardware and silicon that determine access to the network.