Making messages human-readable in Stratum V1 resulted in some messages being approximately 2-3 times heavier than necessary, and those have now been reduced to a minimum size in V2. Having a binary rather than text-based protocol reduces bandwidth consumption considerably.
Stratum V2 is the next generation protocol for pooled mining. It focuses on making data transfers more efficient, reducing physical infrastructure requirements for mining operations, and increasing security. Additionally, Stratum V2 introduces three new sub-protocols that allow miners to select their own transaction sets through a negotiation process with pools, improving decentralization.
A Merkle Tree is a tree structure in cryptography, in which every leaf node is labelled with the hash of a data block and every non-leaf node is labelled with the cryptographic hash of the labels of its child nodes.
The ERC-20 standard specifies a set of regulations for network tokens. These services include providing information about the overall quantity of the token and cryptocurrency displaying account balances on user addresses. The ERC-20 standard requires developers to implement various functionalities before issuing their tokens. It also allows funds to transfer between addresses. Although bitcoin
transactions are financial, users can attach notes and messages by encoding them into data fields.
UST's value depends on confidence among users in Luna's value, cryptocurrency and Luna's value is ultimately based on confidence that UST will remain stable…If users lost confidence in the system, they could rush to sell or redeem their coins, and others might follow, fearing they wouldn't get their $1 per token back if they waited too long. In theory, the network could always issue more Luna tokens to those who wanted out. The more tokens issued, crypto the further the price of Luna would drop, which in turn would mean the network would have to issue even more, exacerbating the decline. On Wall Street, that's called a 'death spiral'". But that was a risk, too.
By separating the prevhash message from other job distribution messages in Stratum V2, those precious milliseconds can be saved. Every millisecond that a miner has to wait to begin working on a new job is opportunity (i.e.
Accommodative pandemic-era monetary policies and stimulus checks had fuelled cross-asset growth like never before, with Bitcoin
being heralded as a gold-like safe-haven asset once upon a time as it defied market instability driven by COVID-induced economic uncertainties. This is a stark contrast to Bitcoin's performance in 2021 when it staged a momentum-fuelled climb towards its all-time high. Similar to the turmoil that has swept across all traditional asset classes spanning equities to credits, Bitcoin and its crypto peers may be headed towards an extended period of similar fate in the months ahead.
The protocol has fixed message framing and is precisely defined, which means that there isn’t room for different interpretations of Stratum V2 like there was with V1. The specific message framing structure can be found in the ‘Framing’ section of the BIP.
The idea (as I understand it) is that the Merkle tree allows for you to verify transactions as needed and not include the body of every transaction in the block header, while still providing a way to verify the entire blockchain (and therefore proof of work) on every transaction.
Short for Simplified Payment Verification, SPV is a lightweight client to verify blockchain transactions, downloading only block headers and requesting proof of inclusion to the blockchain in the Merkle Tree.
This shifts more responsibility upstream from end mining devices to proxies that connect to pools via extended channels. With the introduction of standard and group channels for end devices, Stratum V2 enables efficient caching so that server CPUs don’t need to recompute the Merkle root for every share submission.
The Merkle root is included in the block header. This feature is currently not used in Bitcoin
, but it will be in the future. Every transaction has a hash associated with it. In other words, the Merkle root is the hash of all the hashes of all the transactions in the block. In a block, all of the transaction hashes in the block are themselves hashed (sometimes several times -- the exact process is complex), and the result is the Merkle root. With this scheme, it is possible to securely verify that a transaction has been accepted by the network (and get the number of confirmations) by downloading just the tiny block headers and Merkle tree -- downloading the entire block chain is unnecessary.
Extended channels are given extensive control over the search space so that they can implement advanced use cases (e.g. translation between v1 and v2, difficulty aggregation, custom search space splitting, etc.).
At the same time, a significant reduction in bandwidth consumption allows for hashing results to be transmitted more frequently, enabling more precise hashrate measurement and mining reward distribution as a result. Reducing network traffic as well as client-side and server-side computational intensity translates to lower infrastructure costs for all participants.