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Bitcoin Enters the Jack Dorsey Period

January 19, 2022

Bitcoin is now within the Jack Dorsey period. The previous Twitter CEO (and co-founder) is betting huge on bitcoin. Dorsey renamed his cost firm — previously Sq. — “Block” to sign its new give attention to crypto and blockchain know-how. And his outsized presence appears to be like like it could dominate the panorama for years to return.

Within the final 30 days, Dorsey has…

  • Introduced Block is constructing an “open bitcoin mining system.”
  • Created a authorized protection fund for bitcoin builders.
  • Began a Web3 feud with Andreessen Horowitz co-founder Marc Andreessen.

Block’s new bitcoin mining initiative is designed to make it simpler for folks to turn out to be bitcoin miners. (Click on right here to be taught extra about bitcoin mining and why it’s an necessary a part of the bitcoin ecosystem.)

“For most individuals, mining rigs are laborious to search out,” stated Block common supervisor of {hardware} Thomas Templeton in a Twitter thread concerning the bitcoin mining venture. “When you’ve managed to trace them down, they’re costly and supply might be unpredictable. How can we make it in order that anybody, anyplace, can simply buy a mining rig?”

Templeton additionally needs to enhance the efficiency of mining rigs. 

“Frequent points we’ve heard with present techniques are round warmth dissipation and dirt,” Templeton stated on Twitter. “Additionally they turn out to be non-functional virtually every single day, which requires a time-consuming reboot. We need to construct one thing that simply works. What can we simplify to make this a actuality?”

The last word aim is “to make mining extra distributed and environment friendly in each means, from shopping for, to arrange, to upkeep, to mining,” Templeton defined. 

If Block is profitable, bitcoin mining will turn out to be considerably simpler. In concept, extra folks will begin mining bitcoin. And consequently, the mining course of will turn out to be extra decentralized. And while you’re constructing the decentralized future, decreasing the chance of a strong group of individuals (like miners) taking up the community is important for achievement. And that makes Block’s pursuit of this open mining commonplace a vital growth in bitcoin’s evolution.

Dorsey’s dive into the bitcoin ecosystem goes means past bitcoin mining, although. He’s additionally began a authorized protection fund to guard builders who’re being sued. I’m not going to get into the main points of the lawsuit, as that may take ages. And the deserves of the case actually don’t matter. What does matter is that Dorsey isn’t “choosing a crypto lane” and sticking to it. He’s all in. And when a pressure of nature like Dorsey decides to take one thing on, huge issues occur.

These huge issues that occur additionally include loads of drama and battle — like Dorsey’s present feud with Andreessen. 

In December, Dorsey tweeted out his disdain for the present Web3 ecosystem. (Web3 is a decentralized on-line system the place customers personal the apps, platforms and content material as a substitute of firms.)

Dorsey’s primary level is that Web3 can’t actually be decentralized if enterprise capital (VC) companies are funding and financing the entire system. The incentives don’t align. 

However Dorsey wasn’t happy with simply making that time. He determined to (or was goaded into) calling out Andreessen Horowitz (a16z), one of many VC companies with a significant stake in Web3 startups.

Right here’s Dorsey’s reply to Chris Dixon, one of many prime Web3 officers at a16z:

And Dorsey couldn’t resist taking a shot at a16z when Elon Musk set him up…

After all Andreessen determined to dam Dorsey on Twitter.

And there you’ve gotten it. The complete Jack Dorsey bitcoin expertise. Loads of progress. Loads of drama. And this trip is simply getting began.

Dorsey is decided to make bitcoin a greater product and expertise. However he’s additionally going to do it on his phrases. So seize some popcorn and benefit from the present. The subsequent few years are positively going to be fascinating.