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Author Topic: Jack Dorsey: Block is ‘officially building an open bitcoin mining system’  (Read 197 times)
mynonce (OP)
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January 14, 2022, 01:19:17 AM
Merited by vapourminer (2)
 #1

Yesterday, Jack Dorsey announced the launch of a fund for the legal defense of Bitcoin developers. https://bitcointalk.org/index.php?topic=5378263.msg58967636#msg58967636

And now, he tweeted that they're officially building an open bitcoin mining system. https://twitter.com/jack/status/1481745463401500676

Related news:

cnbc: Jack Dorsey: Block is ‘officially building an open bitcoin mining system’
https://www.cnbc.com/2022/01/13/jack-dorsey-block-officially-building-an-open-bitcoin-mining-system.html

Reuters: Future of Money - Jack Dorsey's Block to build an open bitcoin mining system
https://www.reuters.com/technology/jack-dorseys-block-build-an-open-bitcoin-mining-system-2022-01-13/

Jack has a plan for Bitcoin  Smiley
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January 14, 2022, 01:44:50 AM
 #2

when saying one of his idea's solves the issues of the delivery, setup, heat, dust, noise making it inconvenient for peoples homes.. im guessing he is going to offer a 'cloud mining' service... along with patent-less open source blueprints/designs/coding if people want to take his design of an asic and make their own asic.

years ago many ASIC manufacturers started very open. not just cloud hashing, but also selling asics, and also selling the chips stand alone so others can make their own asics. but lately due to headache and cost of building their own. most ended up just buying asics(farms) or cloud hashing(hobbyists)

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January 14, 2022, 02:13:51 AM
 #3

.. im guessing he is going to offer a 'cloud mining' service...
I wonder how his words will encourage people to invest or something similar to it in regards with this cloud mining. And how it differs to typical scam cloud mining.

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January 14, 2022, 02:21:36 AM
Merited by hugeblack (4), ABCbits (1)
 #4

.. im guessing he is going to offer a 'cloud mining' service...
I wonder how his words will encourage people to invest or something similar to it in regards with this cloud mining. And how it differs to typical scam cloud mining.

well jack so far is just at the preliminary investigation stage. he has yet to even build 1 prototype asic, let alone scale production, let alone have sufficient stock to offer using different sale models(parts, complete product, remote renting)
so too early to tell for sure which route he will concentrate on.

the easiest ways to know if a cloud mining is genuine:
1. the income you get is just 1 taint away from a blockreward
2. the asic 'worker'/hashpower and pool total hash power is accountable and allotted to renters
3. physical proof of asic ownership (warehouse/farm walkthrough video)

the easiest ways to know if a cloud mining is ponzi:
1. the income you get is just some coldstore coin from rent purchase transactions
2. there are more renters at xTHash each, than the pools hashrate combined
3. declines to physically prove asic ownership (never does a warehouse/farm walkthrough video)

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January 14, 2022, 05:36:47 AM
 #5

It got me thinking what could be an "open bitcoin mining system"! Right now, it is extremely difficult for a newbie to start with bitcoin mining because we need specialized hardware that are extremely costly and also need a constant source of electricity. These kind of requirements actually creates a large barrier for a new person to enter into bitcoin mining. It seems Jack is trying to build a system where a person can start with bitcoin mining at a bare minimum cost.

This twitter thread will bring some clarity:
https://twitter.com/TempletonThomas/status/1481728131668987904

ASIC market definitely need some competition from a global brand name. Then only the prices will come down and logistics will be streamlined!

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January 14, 2022, 05:38:34 AM
Merited by PrimeNumber7 (1)
 #6

the easiest ways to know if a cloud mining is genuine:
In my experience there is no such thing as non-scam cloud mining services. Even those honest ones that have actual hashrate will start scamming people at some point by turning into a Ponzi scheme simply because the revenue of such an operation can be pretty low and with some volatility they can easily lose a lot of money.

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January 14, 2022, 05:42:12 AM
 #7

the easiest ways to know if a cloud mining is genuine:
In my experience there is no such thing as non-scam cloud mining services. Even those honest ones that have actual hashrate will start scamming people at some point by turning into a Ponzi scheme simply because the revenue of such an operation can be pretty low and with some volatility they can easily lose a lot of money.

thats why you have to look closely at the payouts..
if cloudmining payouts stop being 1 taint from a block reward and instead have taint of the coldwallets you deposited your rental/hire payment.. then its gone ponzi. and thats the time you stop renting, cut your losses.

most of the cloud mining that do scam. are usually ones where the website and stratums are proxy protected. and the hosting is not revealing the physical office/location of business.(cant sue a scammer if you cant locate him)

im sure someone like a legit business owner thats in the public eye, someone that cant hide. will probably operated a business thats regulated and accountable.

but too early to tell as its not even at the prototype stage.

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January 14, 2022, 12:02:48 PM
 #8

Yesterday, Jack Dorsey announced the launch of a fund for the legal defense of Bitcoin developers. https://bitcointalk.org/index.php?topic=5378263.msg58967636#msg58967636

And now, he tweeted that they're officially building an open bitcoin mining system. https://twitter.com/jack/status/1481745463401500676

Related news:

cnbc: Jack Dorsey: Block is ‘officially building an open bitcoin mining system’
m/2022/01/13/jack-dorsey-block-officially-building-an-open-bitcoin-mining-system.html]https://www.c[Suspicious link removed]m/2022/01/13/jack-dorsey-block-officially-building-an-open-bitcoin-mining-system.html

Reuters: Future of Money - Jack Dorsey's Block to build an open bitcoin mining system
https://www.reuters.com/technology/jack-dorseys-block-build-an-open-bitcoin-mining-system-2022-01-13/

Jack has a plan for Bitcoin  Smiley

i think Jack Dorsey's decision is good as the announcement of open bitcoin mining systems will help developers of the original cryptocurrency facing legal headaches.
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January 14, 2022, 07:59:40 PM
 #9

Developing products is never a solo journey, and evaluating existing tech is always part of our practice. For this project, we started with evaluating various IP blocks (since we’re open to making a new ASIC), open-source miner firmware, and other system software offerings.

Hopefully it means there won't be any incident similar with "Antbleed backdoor" and miner can choose to remove any remote execution feature on the firmware.

Since it's open source even if it's there it would be easy to see and remove.
The biggest obstacle I see is that fact that there are a lot of people with a lot of time and money and effort already out there and they may not like new competition coming in.
Would bitmain & others drop their price to the point of dumping just to keep new people out?

-Dave

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January 14, 2022, 08:36:57 PM
 #10

The biggest obstacle I see is that fact that there are a lot of people with a lot of time and money and effort already out there and they may not like new competition coming in.
Would bitmain & others drop their price to the point of dumping just to keep new people out?
-Dave

i wouldnt see bitmain dumping their price below their cost to monopolise. there is already other asics on the market and bitmain still sell at a premium due to reputation.

they may lower the price if people find a good asic competitor with fair pricing, thus reducing demand for bitmain, where bitmain might then bring it inline with competitors to stay desirable. . but again i dont see them wanting to dump below cost just to monopolise.

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January 15, 2022, 05:24:08 AM
 #11



When it comes to Bitcoin, there is no question that Jack Dorsey is the man just like Elon Musk is with Dogecoin! And what I love with jack is that he is more than talks...he has ideas, he got plans and he seems to be able to set-up the infrastructure needed for his vision of an open Bitcoin mining system. I would not want to go into technical details on this because i am qualified to do or other words there are things I could not fully grasp with it. I just can't contain my excitement and admiration for someone who is taking the works needed to push Bitcoin further to the mainstream population.

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January 15, 2022, 08:55:27 AM
 #12

I wonder how his words will encourage people to invest or something similar to it in regards with this cloud mining. And how it differs to typical scam cloud mining.
If that's what he is going to endorse then there's going to be a problem, cloud mining will never be legitimate because it has been proven time and time again that it's a scam and that it doesn't do any work to make you money. I think that the only way that people will still believe in it is if Jack finds a lot of influencers to lie to their teeth about this project.



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January 15, 2022, 02:39:46 PM
Last edit: January 16, 2022, 12:56:03 AM by franky1
 #13

I wonder how his words will encourage people to invest or something similar to it in regards with this cloud mining. And how it differs to typical scam cloud mining.
If that's what he is going to endorse then there's going to be a problem, cloud mining will never be legitimate because it has been proven time and time again that it's a scam and that it doesn't do any work to make you money. I think that the only way that people will still believe in it is if Jack finds a lot of influencers to lie to their teeth about this project.

i dont think cloud mining is a good business model, so i doubt thats jacks actual plan, he hasnt even made a prototype yet so his 'idea's are still speculative/theories
i only mentioned it as an option as his wording of solving the 'home cost, dust'noise' stuff, made it appear to be one of his idea's.. many other people in other discussions had the same thoughts

the reason why its not a sound business plan is because if he warehouses the asics. pays the electric and maintenance.. and is then calculating a average cost per asic of this service. and charges users that fee..

if the customer can 'profit'.. then a sound business would just avoid a customer. and instead the company would mine itself and profit itself.

EG if i had an apple that cost me 20cent to grow. why would i sell it for 25cent. knowing the <middleman> can make 50cent. . instead id avoid offering to the <middleman> for 25cent.  and instead I sell it for 50cent. thus i make 30cent instead of 5cent

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January 15, 2022, 02:59:34 PM
 #14

It got me thinking what could be an "open bitcoin mining system"! Right now, it is extremely difficult for a newbie to start with bitcoin mining because we need specialized hardware that are extremely costly and also need a constant source of electricity. These kind of requirements actually creates a large barrier for a new person to enter into bitcoin mining. It seems Jack is trying to build a system where a person can start with bitcoin mining at a bare minimum cost.

They are just planning to make an open-source ASIC, how is it going to help with electricity or expensive hardware? Their ASIC is not going to be significantly cheap, especially at the current age of silicon shortages.

The fund for legal protection of Bitcoin devs is much more interesting, it can positively affect Bitcoin ecosystem by allowing people to work on Bitcoin without the costly harrasment done by Craig Wright and similar legal trolls.

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January 16, 2022, 12:21:52 AM
Merited by vapourminer (2)
 #15

It won't be cloud mining. Real hardware at your home.


https://twitter.com/TempletonThomas/status/1481728145644351488

In October we announced that we’re considering building a bitcoin mining system, out in the open & alongside the community, and we’ve decided…we’re doing it! We thought we’d share some more details on how our initial discussions are going and where we’re headed next.

We want to make mining more distributed and efficient in every way, from buying, to set up, to maintenance, to mining. We’re interested because mining goes far beyond creating new bitcoin. We see it as a long-term need for a future that is fully decentralized and permissionless.

We started by digging into two big questions. 1) What are customer pain points today? 2) What are the specific technical challenges? We spoke with members of the mining community to learn more about their experiences. Here’s what we’ve found so far:

1/ Availability. For most people, mining rigs are hard to find. Once you’ve managed to track them down, they’re expensive and delivery can be unpredictable. How can we make it so that anyone, anywhere, can easily purchase a mining rig?

2/ Reliability. Common issues we’ve heard with current systems are around heat dissipation and dust. They also become non-functional almost every day, which requires a time-consuming reboot. We want to build something that just works. What can we simplify to make this a reality?

3/ Performance. Some mining rigs generate unwanted harmonics in the power grid. They’re also very noisy, which makes them too loud for home use. Unsurprisingly, all miners want lower power consumption and higher hashrates. What’s the right balance of performance vs other factors?

Developing products is never a solo journey, and evaluating existing tech is always part of our practice. For this project, we started with evaluating various IP blocks (since we’re open to making a new ASIC), open-source miner firmware, and other system software offerings.

We are interested in performance *and* open-source *and* our own elegant system integration ideas. Which tech and which partners should be on our list to consider? We’ve learned so much just from these preliminary conversations and we want to keep this going.

Team. We’re incubating this investigation within Block’s hardware team and are starting to build out a core engineering team of system, asic, and software designers led by @afshinrezayee. A few of the open roles are Electrical Engineers, Analog Designers, and Layout Engineers.

Thanks for engaging with our work. If you have questions, want to share more feedback about the pain points or missing features of the existing mining solutions, or know someone we should be talking to about our open roles, you can reach us at miningsystem (at) block (dot) xyz
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January 16, 2022, 12:52:34 AM
Last edit: January 16, 2022, 01:04:07 AM by franky1
 #16

its these 'idea's' and queries they are thinking of addressing is what got discussions started on the theory of cloud mining as one of the options they may go down.

probably people picked up on his tweet of him trying cloud mining to earn BTC last year
https://twitter.com/jack/status/1427664937862717441

1/ Availability. For most people, mining rigs are hard to find. Once you’ve managed to track them down, they’re expensive and delivery can be unpredictable. How can we make it so that anyone, anywhere, can easily purchase a mining rig?

2/ Reliability. Common issues we’ve heard with current systems are around heat dissipation and dust. They also become non-functional almost every day, which requires a time-consuming reboot. We want to build something that just works. What can we simplify to make this a reality?

3/ Performance. Some mining rigs generate unwanted harmonics in the power grid. They’re also very noisy, which makes them too loud for home use. Unsurprisingly, all miners want lower power consumption and higher hashrates. What’s the right balance of performance vs other factors?

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January 16, 2022, 12:53:29 AM
Merited by vapourminer (2)
 #17

I wonder if they are going to try to build something for the 120V US market for small home / hobby miners.
It really is a wide open market at this point. With everything going high power 220V 20A miners I can really see having a lower power unit that even if it's not price competitive.
I think you could sell a bunch for people who want to have newer stuff at home as opposed to having to make 1 & 2 board S9 and similar to run quiet and at home.

-Dave

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January 16, 2022, 11:15:05 AM
 #18

This is the reason why he stepped down as the CEO of twitter. I still don't know how it's going to work and there's still a need for me to comprehend and understand the vision that he's going to do with the open system.
But if this is going to benefit the average joe people like me then that would be an interesting goal that he's trying to build up and focus with its development.



 

 

 

 

 

 


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January 16, 2022, 12:52:20 PM
 #19

This is the reason why he stepped down as the CEO of twitter.

there is only so much twitter does. so being a CEO gets boring when there is not much 'new features' to add/change/maintain.
turning up each day and just say, for example "great work employee's keep doing what you're doing, see you tomorrow" is not really exciting. he wanted a challenge. bitcoin is still new and has lots of potential, something to be excited about

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January 16, 2022, 08:02:00 PM
 #20

This is the reason why he stepped down as the CEO of twitter.

there is only so much twitter does. so being a CEO gets boring when there is not much 'new features' to add/change/maintain.
turning up each day and just say, for example "great work employee's keep doing what you're doing, see you tomorrow" is not really exciting. he wanted a challenge. bitcoin is still new and has lots of potential, something to be excited about
We don't know the perspective of a CEO and probably that's like that and there's more. It's true about the challenge and if this is going to be beneficial not only to the bigger investors and someone who's an average can mine soon at their homes then that's really the challenging part that he has brought to himself. Well, some CEOs are going to find it a vacation day after stepping down but after that, what's next? They're going to long for the time that they've been working hard with their past position and so Jack probably is.



 

 

 

 

 

 


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