This case study compares two Bitcoin mining protocols, Stratum V1 and V2 , and demonstrates how the combined technical improvements of Stratum V2 translate into a substantial profitability increase for miners.

In bitcoin mining, a millisecond can determine whether a miner successfully earns the block reward or loses out to a competitor. At the core of this race lies the mining protocol that connects miners, pools, and the network, with the goal of ensuring effective communication between participants.

For over a decade, Stratum V1 (SV1) has served as the industry standard mining protocol, but as mining competition has intensified over the years, the need for technical improvements on the protocol-side has become apparent. While we have seen massive technical improvements on the mining hardware side over the past decade, miners have been stuck with a less than optimal protocol.

This is why we have developed Stratum V2 (SV2), the successor to SV1. This protocol is associated with miner-side block construction, allowing miners to run their own nodes and create their own block templates. While this remains a critical innovation, SV2 also introduces substantial improvements in security and efficiency impacting profitability.

...read more at stratumprotocol.org