Block, the company founded by Jack Dorsey, former CEO of Twitter, communicated through Proto, the branch focused on cryptocurrency mining, the principles that guide, both at the chip and component level, the construction of ASICs and infrastructure to mine bitcoin in the future. The Proto team uses the principles of “modular design” and flexible infrastructure.
At the heart of modular design and flexible infrastructure is a relatively simple question: What if, instead of having to physically remove malfunctioning machines and send them to a repair center, you could easily swap out faulty components on the spot? on the shelf?
Proto, a branch of Block Inc.
According to Proto, bitcoin and cryptocurrency mining would benefit from the use of hashboards removable. That is, the printed circuit boards with their respective processors can be replaced or updated “without having to remove the equipment from the shelf or send it to a specialist for repair.” For the team working on Block’s branch, this would “reduce downtime to minutes and decrease or eliminate the cost associated” with repairing equipment.
Bitcoin mining has changed, and your hardware must too
The reason for wanting to implement a modular design model arises from several problems that affect the industry, one of which is economic: the tight profit margins and seasonally dependent on bitcoin mining.
In a mining economy where margins can be tight, maximizing uptime and minimizing costs is critical. But most rigs are still built for mining’s past, a past in which shoebox-sized machines had to endure harsh environments and constant relocations, from the frozen plains of Mongolia to the humid jungles of the Southeast Asia. Mining machines were intended to be moved and their design reflected that.
Proto, a branch of Block Inc.
According to Block, the ASIC’s modular design, focused on flexibility, would better meet the modern logistics and behavior requirements of the modern bitcoin miner. This is especially so because not only is bitcoin and cryptocurrency mining a more established and regulated industry than in the past, it is also more stationary, focused as it is. in operating from large data centers operating at large scale with specialized (and heavy) infrastructure.
When mining rigs remain more or less in place, portability takes a backseat. Reliability and flexibility are paramount, qualities that allow miners to not only maintain maximum uptime, but also quickly adapt to market volatility, optimize operations and upgrade cycles, and reduce environmental impact.
Proto, a branch of Block Inc.
Focus on electronic components and not systems
The modular design has an approach based on the updating and replacement of components and not complete systems, which would have a positive effect on operating costs and the reduction of electronic waste. “When you can keep chassis, fans and power supplies instead of changing chips or plates hashthe cost of the update is drastically reduced,” comments the Proto team in their statement called “The end of downtime in bitcoin mining», published on December 19, 2024.
Although the modular design of Bitcoin hardware is a futuristic vision, the company assures that this action plan is more than a hypothesis; It is “an idea that was born from close collaboration with industry leaders.” Block refers here to Core Scientific, a company that offers digital mining services.
As CriptoNoticias reported, Core Scientific filed for bankruptcy at the end of 2022. The following year, the United States Justice approved the company’s exit from bankruptcy after it managed to pay its creditors.
In July 2024, Block announced that it began supplying Core Scientific with new 3 nanometer (3 nm) mining ASICs useful to this company, which operates data centers for mining bitcoin in the United States and join some 19,700 PH/S hashing power in totalaccording to Hashrate Index.
