Bitcoin is the largest and first Open-Source network. The idea behind BTC is genius, and includes more than 50 years of research. Satoshi Nakamoto with Bitcoin, the first of the make it a functioning Peer-to-Peer payment – and to create money system. It was in the past, the Problem is that you knew exactly how you could prevent Double-Spend without a Central instance. So, someone spends the same amount twice. Satoshi has done it with Mining to solve this Problem. Meanwhile, its own economy is caused to branch to the Bitcoin Mining, which also has its problems.Companies and private individuals (rare) to compete for the next Block in the BTC network to collect around the exposed Reward. Many miners have joined together in Pools to combine the Hashrate to achieve a higher probability to find a Block. Exactly this circumstance leads again and again that Bitcoin is accused of centralized Mining and the security in question. That should change now with a new Protocol and lead to more decentralisation in the BTC Mining. A Sensation, in the end, nevertheless, the miners themselves to decide whether they make sense or not. We take a look at the Stratum V2 and the opportunity for greater decentralization in Bitcoin Mining.
Contents
Stratum V2 in the fight against BTC Mining Pool centralization
One of the largest Bitcoin Mining Pool operator Braiins has published a code of specification with the name of the Stratum V2. The specification aims to make the functioning of the Bitcoin Mining to change significantly. The safety and effectiveness of Mining Pools, which combine many of the Miner in the world.The advantage is but not necessarily with the Bitcoin Mining Pools itself, but in the case of the individual miners. This could eliminate the centralization of the Mining pool forever.The Bitcoin developer Jimmy Song said to the new Protocol:
If this Protocol keeps everything it promises, will be the “Mining centralization” Argument null and void.
In the meantime, the Bitcoin developer Matt Corallo, one of the developers of the Protocol, wrote in a recent Reddit AMA: “This is huge for the centralization of mining. Instead of focusing on the centralization of Pools (the world in which we find ourselves today), we can focus on the centralization of the actual Miner (and) Mining farms!“Last year, Corallo announced the Protocol BetterHash, which is pursuing a similar goal, such as the Stratum V2. Now Corallo and Braiins want to combine their work, to work together on the Protocol, which should fix a number of the current problems with Bitcoin Mining Pools.
Bitcoin Mining Pool centralization over soon?
The Bitcoin Mining is no longer as easy as it might think. At the beginning of times, it is even possible to mine lucrative from home with your own Computer. In the meantime, the whole of the performance (Hashrate) has reached dimensions where only the professional Mining farms can be really profitable Bitcoin mining. Due to the high competition have formed Mining Pools to combine the small and large miners, in order to achieve a higher Hashrate and increase the probability to find a Block. If a Block from the Mining Pool is found, will split the Reward on the entire Mining Pool.The respectively fed-in Hashrate is weighted, and the Reward to each individual according to weighting split. The provides for any Miner in the Pool is an advantage, since you can increase your probability. Otherwise, the small Miner would probably never find a Block and thus on the costs of Mining over the long term remain. You can think of it similar to a lottery-community.In the meantime have emerged some great Pools out that a few of the quite a Worry. Currently 3-4 Mining Pools have 51% of the total Hashrate. Who holds over 51% of the hash rate in the long term, could control the network and, theoretically, transactions, manipulate, exclude, or double-spend. Although the individual Mining Pools are not directly connected together but, nevertheless, it is often the criticism that the decentralisation of Bitcoin is in question.But there is also another Problem. If a Miner in a Mining Pool, one Block, and the current reward of up to 12.5 Bitcoin gets, the Mining Pool which transactions go in the Block. Bitcoin experts fear that this centralized entity could use this Power to censor transactions, and the like.Buy Bitcoin? In the case of Kraken, of course. Easy. Sure. Top.If you’re thinking of supposed to where you can buy Bitcoin there is no way to Kraken in the past. The Bitcoin exchange is one of the most reputable and safest companies in the industry. Who has a Fidor Bank account can make deposits even on the same day. More security is not! Start now!
Miner have to say, the new Protocol in the network to
To prevent this, supports Stratum V2, the allocation according to the model of Corallos BetterHash. As a result, the relationship between the Miner and the Mining Pool will change. Instead of the Mining Pool decides which transactions go into the blocks, decide the Miner itself.Jan Capek, Co-CEO of Braiins and Slushpool said:
(If) there is in the future, cases of TRANS-action censorship, we have a security measure in the Protocol, the Miner, the bypass censorship.
This also means that even the miners themselves to decide on the Protocol Updates, in the case of Bitcoin, not Mining Pools. This can only work if Mining Pools Stratum V2.”With the log Miner can also choose your block header version field. This allows you the freedom at every possible vote on the mechanism of the BIP8/BIP9-style,“ said Capek.Capek stressed, however, that the new specification is necessarily a “miracle cure” for the centralization of Bitcoin mining. He pointed out that the Mining Pools, Bitcoin want to censor transactions, you could simply decide against the adoption of the Protocol Stratum V2.
At the same time, it is important to mention that a swimming Pool would carry out such censorship “on purpose”, it would not allow its users to decide for themselves.
The well-known Bitcoin developer Luke Dashjr has argued on Twitter that there are still other aspects of the Mining centralization, which still need to be addressed. So the manufacturers of the Mining Hardware, represent a serious threat to decentralization. There are very few companies that have specialized in the production of the specifically for Mining designed Hardware.
Bitcoin Stratum V2 Protocol is almost complete
Decentralisation is not the only goal of the Stratum V2. Mining Pools have an incentive to use the new Protocol to adopt, because it saves them money and prevents attacks. These attacks could lead to the loss of the rewards. It not only makes the transfer of data between the participants more efficient, but also makes the “theft” of the hash rate of the Mining Pool is much more difficult.
“Last but not least, we have addressed the safety aspects, by allowing a fully encrypted and authenticated communication with the current technology called “Noise Protocol Framework”,” said Capek.
This Peer-Review technique is the same technology that is also used by the Mobile Messenger WhatsApp, and the Lightning Network of Bitcoin.Braiins is still to finalise a couple of Features in the specification is final, such as the decision of which encryption algorithm to use to hide data miners. But a Version is available for Testing and the bulk of the Stratum V2 specification draft is now available for Review.Capek expected that it will take at least 12 months until the Mining Pools have adopted the Protocol. To get “all aboard, means to take advantage of the benefits on the safety and efficiency level, which in turn, operating costs to save”.The development of Bitcoin and the existing problems are known. So it remains exciting how Bitcoin will evolve and what we can expect in the coming months and years. Stay tuned.What do you think of the new Bitcoin Mining Pool Protocol? We are able to solve eventually all problems?Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News.You watch better Videos than read articles? Then have a look on our Youtube channel in the past. (Image Source: Shutterstock)