The software used in bitcoin mining is getting its first big makeover in more than a decade — here’s what’s changing
Employees work on bitcoin mining computers at Bitminer Factory in Florence, Italy.
Alessandro Bianchi | Reuters
Software used in bitcoin mining just got its first upgrade since late 2012, and a coalition of companies including payments giant Block (formerly Square) is trying to help push the open-source protocol forward to become an industry standard.
The move could help open bitcoin mining to more participants by supporting lower-quality internet connections, as well as improving security so miners get properly compensated for their work.
Bitcoin operates on a proof-of-work mining model, meaning that miners around the world run high-powered computers to create new bitcoin and validate transactions. Mining requires professional-grade equipment, some technical know-how, a lot of electricity and a special kind of software.
Rather than directly accessing the bitcoin protocol, the vast majority of miners today work through an intermediary protocol called Stratum, which facilitates communication between the bitcoin network, miners, and the mining pools that combine the hashing power of thousands of miners all over the world.
Miners use Stratum to submit their work and to collect a reward if they successfully complete a new block of transactions.
On Tuesday, a coalition of bitcoin developers is releasing version 2 of Stratum under an open-source license for the mining industry to evaluate and test.
It will take some work to convince the mining industry to adopt the new protocol, so Spiral — a subsidiary of Jack Dorsey’s payments company Block (formerly Square) — is teaming up with bitcoin mining company Braiins to launch a group to test and fine-tune the open-source software before they push mass adoption.
What the upgrade does
Steve Lee, the lead at Spiral, tells CNBC there are several significant benefits to the upgrade, including cutting down on the use of data.
Currently, it is common for each mining rig in a large farm to directly connect to a pool. This setup wastes a lot of energy. Lee says that Stratum V2 supports a proxy that aggregates all the connections and only establishes one connection with the pool.
The process of sending that data is also changing to a more efficient method.
“All told, much less data needs to be transmitted between miners and pools, and this could help miners in remote regions of the world with poor internet,” noted Lee.
The upgrade is designed to improve security, as well. Today, it is possible to steal hash rate from a miner, which can lead to some miners losing money. Hash rate is a term for the collective computing power of the bitcoin network. To resolve this, Lee says Stratum V2 introduces a standard security mechanism with authentication and encryption between miners and pools.
The version being released Tuesday is for initial testing, and in early November, a more robust version will come out that supports additional functionality, including job negotiation — a “feature that represents a historic shift in the censorship-resistant mechanics of bitcoin mining by replacing a pool’s responsibility of assigning work to miners with the ability for miners to select their own work,” according to a joint statement released by Spiral and Braiins.
There are orders of magnitude more miners than pools, so if miners select transactions it is far more decentralized than just a handful of pools, Lee explained.
“Working for industrywide adoption of the upgraded Stratum protocol is one of the most important developments in improving the decentralization and censorship resistance of bitcoin’s architecture,” Lee said.
As for timing, the pilot and integration testing will happen this fall, and next year, the upgraded protocol will likely see greater adoption once miners and pools are confident it is working well.
“I’d anticipate a gradual increase in hash rate in 2023,” Lee told CNBC. “Reaching 10% hash rate by the end of 2023 would be a great success,” continued Lee.
Lee added that it will likely take several years to see the latest version of Stratum replace the original.
“Miners know the benefits of upgrading to Stratum V2 very well, but pushing the entire mining industry over some of the remaining development and adoption hurdles is a big task,” said Jan Capek, co-founder of Braiins.
“Universal standards for running and building Stratum V2 and the efforts of this working group to push the industry forward will provide the momentum bitcoin needs to finally upgrade from a version of its mining protocol that was built a decade ago,” continued Capek.
Similar to the Lightning Network, which is a technology built on top of bitcoin’s base layer to make payments more efficient, there will be different implementations of Stratum V2. However, the open-source version released Tuesday will make it easier to collectively test out the technology. It will also ensure that the various projects can interact with one another.
Block jumping into mining
Tuesday’s announcement is part of Block’s larger push into the bitcoin mining industry.
On the sidelines of the Bitcoin 2022 conference in Miami in April, digital assets infrastructure company Blockstream and Block announced that they were breaking ground on a solar- and battery-powered bitcoin mine in Texas that uses solar and storage technology from Tesla.
Tesla’s 3.8 megawatt solar PV array and 12 megawatt-hour Megapack will power the facility.
Block is also independently working on a project to make bitcoin mining more distributed and efficient.
The idea of making the mining process more accessible has to do with more than just creating new bitcoin, according to Block’s general manager for hardware, Thomas Templeton. Instead, he says the company sees it as a long-term need for a future that is fully decentralized and permissionless.
“Mining needs to be more distributed,” Dorsey wrote in a tweet in October, when he first floated the idea. “The more decentralized this is, the more resilient the bitcoin network becomes.”
Toward that end, the company is solving one major barrier to entry: Mining rigs are hard to find, expensive and delivery can be unpredictable. Block says it is open to making a new ASIC, which is the specialized gear used to mine for bitcoin.
The project is being incubated within Block’s hardware team, which is beginning to build out a core engineering team of system, ASIC and software designers led by Afshin Rezayee.
![Hyundai's first EV sports car has even Lamborghini interested [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/01/Hyundais-EV-Lamborghini.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
The IONIQ 5 N is the fastest Hyundai ever made, electric or gas-powered. The sporty electric car is so good that it’s now drawing the attention of some of the industry’s finest. Hyundai’s EV sports car was recently spotted outside a Lamborghini test facility. Check out the video below.
Hyundai’s EV sports car caught at a Lamborghini test site
As the first EV to wear its “N” badge, Hyundai aimed to set the bar even higher. And that it did. The IONIQ 5 N is not only the most powerful Hyundai, it’s also the most fun to drive with a series of track-ready features.
Based on its advanced E-GMP platform, Hyundai’s electric sports car delivers up to 641 hp. That’s when using its N Grin boost feature, which gives you a 10-second power surge.
When on the track, N Launch control enables you to adjust to different road conditions for the perfect takeoff. Other features, like N e-Shift, simulate an 8-speed N Dual Clutch Transmission, making it feel like you’re in a true race car.
With N Active Sound+, you cannot only feel the performance but also hear it. Eight internal and two external features sync to your vehicle’s performance.
Hyundai’s EV sports car is apparently good enough to attract Lamborghini’s attention. A Hyundai IONIQ 5 N model was recently spotted leaving Lamborghini’s test facility.
The video from YouTuber Varryx shows a Lamborghini test driver leaving the “Porta Sud,” suggesting the sports car maker could be benchmarking Hyundai’s EV.
Lamborghini unveiled the Lanzador in 2023, its first fully electric vehicle. The concept introduces a new high-ground-clearance GT with 2+2 seating. Or, in other words, like a supercar sitting on an SUV. It’s expected to launch in 2029.
Hyundai’s IONIQ 5 N already beat a Lamborghini Urus Performante in a drag race (see the video here), so it’s no wonder the Italian sports car maker is taking notes.
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The board of directors of the troubled hydrogen fuel cell maker has voted to dissolve the company that developed the first HFC garbage truck to North America last spring, pending shareholder approval.
After a promising global start that saw the American startup announce pilot programs that would see its hydrogen fuel cells put to work in transit buses in Brisbane, its tow trucks (above) in Victoria, and five 154-ton severe duty trucks scheduled to service a zinc refinery operation in north Queensland, slow sales and an inability to deliver on its ambitious goals saw the company quit Australia in July.
Now, Hyzon is quitting altogether.
After issuing a WARN letter to employees in December announcing layoff plans, citing an inability to raise funding and the future uncertainty relating to the availability of government subsidies. Now, it appears the Hyzon board of directors has unanimously voted to dissolve the company and liquidate its assets (pending shareholder approval).
Unanimously approved, subject to stockholder approval, the transfer of all or substantially all of the Company’s assets through an assignment for the benefit of creditors, and the liquidation and dissolution of the Company pursuant to a plan of dissolution while continuing to pursue strategic alternatives and potential funding sources intended to maximize the value of its business and assets.
HYZON, IN A STATEMENT TO NASDAQ
If Hyzon is unable to find a buyer or an patient, bullish customer soon, expect all of Hyzon’s staff at its Bolingbrook, Illinois and Troy, Michigan facilities to be laid off by the end of February 2025.
Electrek’s Take
When I wrote about Hyzon retreating from Australia’s shores, I noted that Australia’s commercial BEV sales were booming. The same is true in the US, as well, with Cox Automotive expecting fully 1 in 4 new cars sold this year to be fully electric.
It seems like the market has spoken, then – and hydrogen has lost.
SOURCE | IMAGES: NASDAQ, via ACT.
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Data scientists at General Motors (GM) are using AI and machine learning to pinpoint ideal EV charging station locations across the US.
As EV sales hit record highs for GM in 2024, many drivers are still unsure where to charge their vehicles. To tackle this, GM has partnered with EVgo and Pilot Travel Centers to boost public charging options and improve the overall charging experience.
Partnerships with EVgo and Pilot Travel Centers
GM and EVgo are working together to install 2,850 DC fast charging stalls nationwide. This includes 400 flagship fast-charging locations in major metro areas with 350 kW chargers for ultra-fast charging. These stations feature pull-through layouts for easier vehicle maneuvering, bright lighting for safety, and canopies to protect against the elements.
Additionally, GM has teamed up with Pilot Flying J and EVgo to add up to 2,000 DC fast chargers at 500 Pilot and Flying J travel centers. So far, more than 130 locations are operational.
Using AI to site EV charging stations
To ensure new charging stations are sited where they’ll have the most impact, GM’s data scientists are tapping into artificial intelligence. AI tools analyze EV traffic patterns, driver behaviors, and existing infrastructure to identify optimal locations for chargers.
By treating site selection as a mathematical optimization problem, these algorithms evaluate factors like traffic flow and proximity to other chargers. The results are then visualized on detailed maps, helping stakeholders understand the reasoning behind each recommendation. Human experts review and refine these suggestions to finalize charging site plans.
Once the data-driven decisions are made, GM works with its partners to bring these strategic charging stations online.
This approach blends advanced technology with industry collaboration to tackle one of the most significant hurdles for EV adoption, ensuring drivers have the confidence to make the switch.
What do you think about the use of AI to site EV charging stations? Let us know in the comments below.
Read more: GM and EVgo double their DC fast chargers to 2,000 in 16 months
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