The Future of Bitcoin Mining Protocols: Making Every Watt Count

Rachel Rybarczyk | Galaxy Digital Mining | [email protected] | @_rrybarczyk

When Bitcoin miners work with mining pools, as the vast majority of them do, they communicate with the pools using a messaging protocol called Stratum V1, which organizes the creation of blocks and the submission of hashes by the miners. As the years have progressed and Bitcoin has grown in popularity, so has network hashrate. Stratum V1 has served the community well, but the time has come for a protocol that is robust enough to handle today’s high hashrate. Stratum V2 is a highly anticipated new Bitcoin mining protocol that is poised as the next generation of the Stratum V1 protocol and brings many improvements for both miners and pools alike. Although the Stratum V2 protocol is big news, the project has not garnered the attention it deserves. This blog aims to change that by providing an introduction to Stratum V2; first, the rationale for why a new protocol is established, along with some desirable characteristics of a robust mining protocol. In this report, we also give an overview of the existing Stratum V1 protocol, explain the improvements offered by Stratum V2, and then discuss efforts to promote adoption of the new protocol. 

Read the full report here.