Introducing Proto: Building the future of bitcoin mining hardware

I’m excited to introduce Proto, Block’s suite of bitcoin mining products and services. Our mission is to accelerate the transition to a more open, equitable global economy. Central to this mission is the belief that open protocols like bitcoin are integral to achieving this vision. To that end, we have been focused on developing products that decentralize access to builders, increase network resiliency, and make everyday use of bitcoin safe and easy. Our foray into the bitcoin mining hardware business marks a significant step toward realizing this mission.

The bitcoin mining industry is currently dominated by one company that has overwhelming market share, and a couple other players – all of whom operate from a single country. These companies have historically consolidated market share based on their in-house ASIC design expertise, without any real challenge from truly customer-focused companies. This concentration of power has led to limited consumer choice, high barriers to entry, and significant pain points for mining operators.

Proto aims to contribute to the health of the bitcoin network by decentralizing both the supply of mining hardware — both chips and rigs — and the distribution of hashrate. Our goal is to bring better product experiences to the mining industry. By introducing a new, competitive chip (ASIC), we will provide an alternative to the current market offerings, which are often plagued by unreliable performance, lack of customization, and poor customer support.

Why Enter the Mining Hardware Business Now?

The bitcoin mining hardware market is a multi-billion dollar a year industry, with an estimated 1 to 2 million mining rigs sold per year. As bitcoin's price and network continue to grow, so does the demand for mining hardware. However, the market has not evolved to meet the needs of newer, smaller players or those interested in innovative applications like home mining, off-grid solutions, and commercial heat reuse. By entering this space, Proto seeks to address these gaps and offer a broader and innovative range of solutions to the bitcoin mining community.

Building in the Open:

Since kicking off the project in 2021, we have made significant strides, including:

• The design and tape-out of our first 3nm chip with a leading global semiconductor foundry.
• Launching the Mining Development Kit (MDK) Beta with a number of builders and miners.
• Announcing our first public deal with Core Scientific, representing one of the largest single deals for bitcoin hardware in industry history.

Moving forward, our product roadmap focuses on chips, rigs, and developer tools, all of which contribute to decentralizing the network:

Chips: We are committed to long-term ASIC chip development, which will be the core of all of our product offerings. These chips will power our own hardware systems and be available as standalone products for other mining hardware manufacturers to allow for decentralization of hardware solutions on the market.

Hardware Systems: We will develop a range of mining rigs over the next years, including both industry-standard and innovative new formats. Additionally, we’ll explore how our software can help mining operators of all sizes manage their operation. That adds more options and competition to the host and self mining market.

Developer Tools: For builders of innovative and next gen solutions, we’ll offer tools starting with ASIC sales and evaluation kits, reference materials and schematics, alongside top-tier customizable firmware and a robust API for greater customization. This will empower global developers to think beyond the envelope of what is currently possible for bitcoin mining in heat reuse and energy solutions.

Proto’s entry into the mining hardware business is a natural extension of our commitment to decentralization, innovation, and the broader adoption of bitcoin. By leveraging our strengths in ASIC design, hardware development, and operations, we are poised to make a meaningful impact on the bitcoin mining industry, offering solutions that empower a wider range of participants and foster a more resilient network.

Ushering in a more open and equitable global economy is a long-term goal, and we’re just getting started.