In the past, the Stratum protocol has played a vital role in the field of Bitcoin mining. This protocol serves as a communication bridge between Bitcoin mining pools and miners, directly affecting the security and efficiency of the Bitcoin network. However, the degree of centralization of the Stratum protocol has long been controversial. Experts have been concerned that this high degree of centralization could lead to potential security risks and market monopoly. Therefore, the launch of the V2 protocol is undoubtedly good news for the Bitcoin mining field.

The advent of the V2 protocol marks an important step in the decentralization of Bitcoin mining rights. By optimizing network connections and data transmission methods, the V2 protocol will enable more miners to participate in Bitcoin mining, thereby reducing the centralization risk of the entire network. This change will not only improve the security of the Bitcoin network, but also promote fair competition within the industry and bring development opportunities to more small miners.

As the Bitcoin market continues to grow, traditional mining methods are no longer able to meet the growing demand. The launch of the V2 protocol will bring greater efficiency and stability to Bitcoin mining. Miners will be able to verify transactions faster and earn more stable earnings. This will not only attract more miners to join the Bitcoin network, but will also accelerate the development of the Bitcoin market and push the entire industry towards a more mature and healthy direction.

In addition to technological innovations, the launch of the V2 protocol will also have a profound impact on the Bitcoin market. With the decentralization of mining rights, the decentralized characteristics of Bitcoin will be further strengthened, and the security and anti-attack capabilities of the network will be greatly improved. This will attract more investors and institutions into the Bitcoin market, driving the price of Bitcoin to rise steadily. At the same time, the market liquidity and stability of Bitcoin will also be further improved, injecting new vitality and power into the entire digital currency market.

Overall, the launch of the V2 protocol will bring revolutionary changes to the Bitcoin mining field. By realizing the decentralization of mining rights, we can improve the security and efficiency of the network and promote the development of the Bitcoin market in a more mature and healthy direction. This change will not only affect Bitcoin itself, but will also have a profound impact on the entire digital currency market. Let’s wait and see and witness the arrival of a new era of Bitcoin mining!

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The company behind Braiins, Slushpool, one of the early world's largest Bitcoin mining pools, recently released a code specification that is expected to be used for distributed mining of Bitcoin.

The Stratum V2 protocol can significantly change the way Bitcoin mining operates and improve the security and efficiency of mining pools, which are entities that organize miners distributed around the world.

While it aims to improve Bitcoin mining pools in a number of ways, the main benefit comes from reducing one of Bitcoin's most pressing problems: mining pool centralization.

“If the protocol does everything it promises, the issue of ‘Bitcoin mining centralization’ will never be raised again,” said Bitcoin Core developer and educator Jimmy Song.

Meanwhile, Bitcoin service developer SquareMatt Corallo, one of the architects of the protocol, said in a recent Reddit post
The AMA wrote: “This is very important for decentralizing Bitcoin mining. After the protocol is released, we no longer need to focus on dealing with the centralization of mining pools (which is the world we live in today). We can focus on Centralization of actual miners and mine owners!”

Last year, Corallo revealed BetterHash, a project aimed at solving centralization issues in Bitcoin mining pools. Now, Braiins and Corallo are working together to build a protocol that solves many of the current issues surrounding mining pools.

Bitcoin mining has long been a problem for individual miners. In the early days of Bitcoin, miners from all over the world began connecting to so-called mining pools to earn a more stable salary. All miners work together, and when one member of the pool mines a block reward, the entire pool benefits.

Over time, pps weighted distribution form mining pools have gradually become a safer and more profitable way to mine, taking in all the Bitcoins earned by miners and calculating them based on the contributed Bitcoin mining Capabilities are reallocated. Unfortunately, according to the latest data from Blockchain.info, three major mining pools currently control more than 50% of Bitcoin’s mining computing power, thus concentrating Bitcoin mining computing power in the hands of a few people.

This is a problem. When a miner in the pool wins a block and is rewarded with 12.5 Bitcoins, the pool decides which transactions go into the block. Bitcoin experts worry that these centralized entities could use this power to censor transactions they don’t like.

To avoid this situation, Stratum
V2 supports "work negotiation" modeled after the Corallo version of BetterHash. This changes the relationship between miners and mining pools. Miners decide which transactions to include, rather than mining pools deciding which transactions to split into chunks.

"If there is a transaction review in the future, there is a security measure in our protocol that miners can use to circumvent those reviews," Capek said.

This also means that if a mining pool adopts Stratum V2, miners (not the mining pool) will be able to vote on the protocol upgrade to Bitcoin.

Capek said: “With the Stratum V2 protocol, miners can also choose their block header version field. This gives them the freedom to conduct any potential voting through BIP8/BIP9 style mechanisms.”

Having said that, Capek stressed that the new regulations are not necessarily a “magic bullet” for mining concentration. He noted that mining pools that want to censor Bitcoin transactions can simply choose not to adopt the protocol.

“At the same time, it is important to have a mining pool that is “willing” to enforce such a censorship-resistant protocol, and the pool may not allow its users any leeway to negotiate,” he said.

Meanwhile, veteran Bitcoin coder Luke
Dashjr noted on Twitter that other aspects of Bitcoin mining centralization still need to be addressed. For example, the fact that only a few companies produce Bitcoin mining hardware, i.e. computers specifically designed to produce Bitcoins, also poses a serious threat to decentralization.

Decentralization is not Stratum
The only attraction of V2. Mining pools will have an incentive to adopt the new protocol as it will save them money and prevent attacks that could cause them to lose block rewards. First, it makes transferring data back and forth more efficient. This may also make the ability to steal mining pool hashes more difficult.

"Last but not least, we have addressed the security aspect by allowing fully encrypted and authenticated communications using the latest technology currently known as the Noise Protocol Framework," Capek said.

This peer-reviewed technology is the same used by mobile messaging tool WhatsApp and Bitcoin’s Lightning Network.

Capek said Braiins is still finalizing some features in the specification, such as deciding which encryption algorithm to use to hide data from prying eyes. But there is a version to test and now most Stratum
The V2 specification drafts are all under review.

Capek expects it will take at least 12 months for mining pools to adopt this version of the protocol.

"It's a matter of getting everyone on board to realize the gains in terms of safety and efficiency, which in turn can lead to some savings in operational costs," he said.
As the V2 protocol makes breakthrough progress in the field of Bitcoin mining, Bitcoin mining will usher in a standardized innovation. The update to the Stratum protocol will promote greater decentralization of Bitcoin mining rights and bring new development opportunities to the entire industry. Let’s take a closer look at this major change.