“What are the incentives that will lead pools to adopt Stratum V2? What will lead them to voluntarily choose to lose control over block construction?
“The other two fundamental characteristics of the Stratum V2 protocol: security and performance,” answered Vernetti.
“Security: unlike Stratum V1, Stratum V2 is an encrypted protocol. It does not allow the hash-rate-hijacking attacks that are possible today. In these attacks, the hacker gets in the way of communication between the miner and the mining pool, takes the proof of work that the miner produces and pretends to be the author of those proofs, instructing the pool to send the reward to him. This cannot happen with Stratum V2 because the communication is encrypted and therefore the proof of work provided by the miner to the pool is not visible to outside observers. This is the first incentive: with such security, the pool can attract more miners than those that do not offer this guarantee.
“Performance: the communication between miner and mining pool in Stratum V1 is human readable, it is in ASCII code. In Stratum V2, on the other hand, communication is completely in binary code. This small factor increases performance because the conversion time from human readable character to binary is saved, so more packets of information can be transmitted in a given time frame than in Stratum V1. This is important because being able to provide more proof of work can be decisive in winning the race to write the block. Improved performance is a competitive advantage.””