In an important development, Square Inc. has revealed that it is looking to launch a new platform for mining Bitcoin, the world’s largest cryptocurrency, by market capitalization. Jack Dorsey, the chief executive of the payments group, said that the new system will work on open-source technology and involve custom silicon to offer a more effective and efficient way of mining the digital coin.
Emphasizing the need to make Bitcoin mining simple and uncomplicated, Twitter’s founder said that the entire process of Bitcoin mining should be as simple as inserting a rig into the power source. Earlier this year, in July, Dorsey announced that his organization was developing a new platform focused on Bitcoin cryptocurrency. The initiative is headed by Mike Brock, chief of Strategic Development Group at the Service Cash App of Square Payments.
Dorsey said that there are not enough incentives available for individuals to come into cryptocurrency mining and overcome the complexity of the process. In other words, the current incentives available for the miners are not good enough to attract individuals to venture into the segment and start solving the complex problems to mine cryptocurrency.
It will be interesting to witness how this development enhances the ongoing processes to make Bitcoin mining simple and uncomplicated in nature. It is not a simple task to achieve the desired results on this front. This is because the complexity of the mining process is one of the underlying reasons behind the safety and security of Bitcoin transactions. If the processes become easier, it might have implications for the high transparency and authenticity factor associated with Bitcoin. It remains to be seen how Square Inc. chooses to address the balance between the complexity of the consensus mechanism and the simplicity of the mining process.