Jack Dorsey’s New Startup OCEAN Aims to Decentralize Bitcoin Mining Globally
Bitcoin mining is the process of securing and validating transactions on the Bitcoin network using specialized hardware called ASICs (application-specific integrated circuits). Bitcoin miners compete to find a solution to a cryptographic puzzle that allows them to add a new block of transactions to the blockchain and receive a reward in Bitcoin.
However, Bitcoin mining is not very accessible or decentralized, as most of the mining power is concentrated in a few large pools that are controlled by centralized entities. These pools can censor or prioritize certain transactions, charge high fees, or even collude to attack the network.
That’s why Jack Dorsey, the founder and CEO of Block (formerly known as Square and Twitter), has invested in a new startup called OCEAN that aims to create a more democratic and transparent mining pool for Bitcoin. OCEAN stands for Open Censorship-resistant Energy-efficient Autonomous Network.
According to a press release, OCEAN is a non-custodial, transparent and permissionless mining pool that will allow miners to receive the new Bitcoin block reward directly from the network, without intermediaries or fees. OCEAN will also use renewable energy sources to power its mining operations, reducing the environmental impact of Bitcoin mining.
OCEAN has raised $6.2 million in seed funding, led by Jack Dorsey, Accomplice, Barefoot Bitcoin Fund, MoonKite, NewLayer Capital, the Bitcoin Opportunity Fund, and other strategic partners. The startup was founded by Mummolin Saccoh, Janet Maingi and Philip Walton, who have experience in renewable energy, telecom and software engineering.
OCEAN announced its launch at the Future of Bitcoin Mining Conference on November 29, 2023. The startup plans to deploy its first mining sites in rural Africa, where there is abundant solar and hydropower that is not utilized due to a lack of infrastructure. By partnering with local energy producers, OCEAN hopes to bring affordable electricity and internet access to these communities, as well as generate income from Bitcoin mining.
OCEAN is not the only venture that Jack Dorsey’s Block is backing in the Bitcoin mining space. In April 2023, Block announced that it had bought a large number of Bitcoin mining chips from Intel, which was winding down its production of ASICs. Block said it would use these chips to build its mining machines based on a cutting-edge 3-nanometer design. Block also said it would open-source its technology and offer a mining development kit for other engineers to create products using Block’s chips.
Jack Dorsey has been a vocal advocate of Bitcoin and its potential to create a more inclusive and decentralized financial system. He has also expressed his support for the Lightning Network, a layer-two solution that enables fast and cheap transactions on top of Bitcoin. In June 2023, Block launched its own Lightning Network node and said it would integrate Lightning into its products such as Cash App and Tidal.
With OCEAN and Block’s initiatives, Jack Dorsey is showing his commitment to making Bitcoin mining more accessible, efficient and sustainable for everyone.
News Sources: CoinDesk
