Jack Dorsey Sets His Sights On Improving Bitcoins Decentralization

Jack Dorsey, CEO of Block, formerly known as Square, announces plans to provide greater decentralization to Bitcoin bringing easier affordable participation in the Bitcoin mining process to the masses, through a new Bitcoin mining system. The project sets out to address several pain points in the current Bitcoin ASIC mining business including access to equipment, cost of equipment, reliability of equipment and vendors, while also tackling the biggest elephant on the list, power consumption. The ultimate rollout of these efforts being that Bitcoin mining is more accessible to everyone, and Bitcoin becomes more decentralised as a result. Lofty goals with an excellent narrative that has improving upon Bitcoins core fundamental strength, decentralised control, at its heart.

Proof Of Stake is so popular&hellip

In a time when Proof of Stake Coins and moves to Proof of Stake consensus (Ethereum) are in the spotlight, Jack Dorsey moves his company to support and expand the most popular cryptocurrency Bitcoins Proof of Work system. The two systems both offer decentralisation but to different degrees. Technically when Ethereum moves to Proof of Stake consensus it is still decentralised, though it will be to a far less degree than presently. Is that the correct direction evolving towards a less decentralised network? In light of the current crypto trends/sentiment, and an aspiring fully decentralised Web3, we think not.

Node purchase or a stake on Ethereum 2.0 is set to be 32 Ethereum. These 2.0 Ethereum nodes or stakes will replace current miners on the Ethereum network and start earning the rewards for validation of transactions. A future buy-in to producing Ethereum will be to commit 32 Ethereum to a stake, an enormous price tag even today. Presently anyone with a video card in their computer can support the Ethereum network and earn rewards. In the future it will only be the wealthy that can afford to be rewarded. Thus, the Ethereum network will be centralized among wealthy people only.

Jack has a strong case championing the decentralisation component in Bitcoin and crypto, striving to retain and develop further incentive for the "little guy" to participate, adding to Bitcoins decentralization and strength as a network. We think he is heading Block in the right direction and working towards Web3 aspirations of online privacy, decentralised control, fewer online monopolies, and a system that everybody can support, and be rewarded for doing so.