The Impact of BLOCKSTREAM’S New ASIC Section on Bitcoin Mining

Posted on the 12 October 2021 by Saeed Ashif Ahmed @saeedashifahmed

Following a significant purchase and a unicorn value, BLOCKSTREAM propels the Bitcoin mining sector to the next level of development. BLOCKSTREAM, a Bitcoin backbone firm, aims to introduce the "world's first enterprise-class miner" in 2022, adding to a long list of products and services covering virtually every area of the cryptocurrency sector. Furthermore, in addition to being a huge task in and of itself, BLOCKSTREAM wants to enhance the efficiency of mining rigs, fulfill significant industry demand, and promote the decentralization of the mining sector as a result of this endeavor. And before we move on with our guide, we were hoping you could register yourself on the and learn all about the safest ways to trade in Bitcoin.

The Impact of BLOCKSTREAM’S New ASIC Section on Bitcoin Mining

Purchasing Spondoolies and Developing Innovative Asics

BLOCKSTREAM has acquired both the intellectual property (IP) and the core team of Spondoolies to establish a new mining hardware division as part of its latest mining hardware division. Assaf Gilboa, the former CEO of Spondoolies, has joined BLOCKSTREAM as the company's new ASIC division's leader. Spondoolies has developed and manufactured five different mining devices since its inception in 2013, according to a recent statement.

Moreover, although Dr. Back does not believe that there is much potential for a significant increase in ASIC performance, he believes that there is room for refinement - especially in the size of the chips these rigs use. As he explained to us, "Hash functions such as SHA256 are intended to be difficult to discover computational shortcuts, thus it is probable that there is little space remaining for future algorithm improvement in bitcoin proof of work." Power consumption and, therefore, the efficiency of miners increase with time as ASIC technology progresses from 7 nanometers (nm) to 5 nanometers (nm) and, in the future, 3 nanometers (nm) processors.

The Size of The ASIC Is Important

Increasing the efficiency of bitcoin mining would be a significant accomplishment highly valued by the bitcoin mining industry. Since rack space is limited, it makes more economic sense to stock shelves with more energy-efficient machines that can generate higher hash rates while using less energy. These developments can only be positive for BLOCKSTREAM's next endeavor.

In The Future, Decentralization Is the Goal

While BLOCKSTREAM is under tremendous pressure to produce and market bitcoin ASICs well before the middle of next year, Professor Back is sure that their decision to work with Spondoolies has been the right one. In the opinion of Dr. Back, the partnering among both BLOCKSTREAM and Spondoolies makes a great deal of corporate context because it brings together BLOCKSTREAM's protocol and elliptic curve cryptography computation expertise. Spondoolies' engineering and manufacturing capabilities for best-of-breed miner structures create a large mining and hosting framework and enterprise web and mining activities.

Regarding the company's marketing approach, BLOCKSTREAM will emphasize the necessity of decentralizing the supply chain away from China and the importance of having a foothold in North America (as of early 2020, 73 percent of ASIC manufacturing took place in China).

"Miners are in limited supply in the near term; therefore, we, like other mining firms, are forced to distribute miners smartly," says the CEO. In the long run, we would want to develop additional product lines that we can offer to other miners and people across the world, as well as support BLOCKSTREAM Mining goods such as the BMN [BLOCKSTREAM Mining Note] and BLOCKSTREAM Energy."

BLOCKSTREAM has received $210 million in a Series B round of funding, and now BLOCKSTREAM, valued at $3.2 billion after the grant, backed by private equity company Baillie Gifford in the United Kingdom and Hong Kong-based iFinex, which operates the cryptocurrency market Bitfinex. However, BLOCKSTREAM's value and continuous growth seem to be setting the scene for a public offering, Dr. Back intends to continue developing as the CEO of a private business for the time being.

"Our liquidity with the B round is greater than the valuation of certain public market cyber sector organizations," he said. "We may explore a public offering in the future, but for the time being, we benefit from the freedom and agility that comes with operating as a private business, as well as sufficient capital to help us accelerate growth."

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