According to Bloomberg, the digital payments company has announced the development of a three-nanometer chip that could significantly impact the rapidly expanding mining industry. This chip is a crucial element in the creation of some of the most sophisticated computers. It powers specialized computers used for Bitcoin mining and has been a barrier for new entrants due to the lengthy development process and substantial overhead costs.
Only a few chip manufacturers in Asia have reaped substantial profits amidst the cryptocurrency boom. Beijing-based Bitmain has been leading the market, generating billions of dollars. The San Francisco-based company has described this development as a significant milestone in their Bitcoin mining project. The company is reportedly finalizing a full tapeout of the design with a leading global semiconductor foundry.
Bitcoin mining is a process that requires a lot of energy. Miners use machines, or rigs, to validate transaction data on the blockchain and earn a reward in the form of the token. Miners are currently dealing with a heavy workload. The company stated that their mining chip would utilize the most advanced semiconductor process available. It will deliver the performance necessary for mining operators of all types to survive and thrive in the fifth mining epoch (the period following the recent 4th halving of the block subsidy) and beyond.
