New Restrictions for Crypto Mining considered in Quebec

Quebec is to continue examining applications after a number of new rules and restrictions have been instituted
08 June 2018   1908

After being well-known as a crypto miners` hotspot for several months, the Canadian province of Quebec poised the acceptance for any new crypto mining projects on Thursday, June 6. The province can start the approval of new mining projects after it has taken the necessary period to consider placing restrictions on their operations and increase electricity rates. Quebec Energy Minister Pierre Moreau in his report claimed that the new rules are aimed to welcome only “the best among the [crypto mining] companies” to the province; Hydro-Québec Distribution President Eric Filion affirmed that the restrictions are to defend Quebec citizens from having to pay higher rates for the electricity they use.

As reported by Reuters, Quebec government started the suspension when the state-owned Hydro Quebec power plant had demanded that the province confined the general amount of power available to all crypto miners in the region to 500 megawatts; 17,000 megawatts were required by crypto miners for their purposes.

Hydro Quebec has also begged Quebec’s energy board to regard placing a premium on energy sold to cryptocurrency miners in order to grow the province’s profits. Applications for the establishment of mining rigs in Quebec from companies in China and other countries have increased after many of the world’s governments ran  placing restrictions on the amounts of electricity that crypto miners are let for using. Quebec’s availability of (mostly) sustainably-produced, inexpensive electricity joined  with its political stability has made this region a very attractive for foreign miners.

The suspension announcement follows just a week after Quebec lifted a prohibition that prevented energy firms from supplying crypto-mining operations with any electricity. The province’s government was reportedly disquieted that the ban went too far, and suppressed the growth of the crypto industry in Canada.

Developers to Combat Bitcoin Mining Cetralization 

Stratum V2 mining protocol will significantly change the principles of functioning of bitcoin mining
03 December 2019   83

The mining company Braiins has provided instructions for using a code that can make the Bitcoin mining process more decentralized, CoinDesk writes. It is expected that Stratum V2 will significantly change the principles of functioning of bitcoin mining and will help increase the safety and efficiency of mining pools.

More comprehensive than BetterHash, individual job selection, zero time backend switching. If this protocol does everything it promises, "mining centralization" as an argument will be completely dead.
 

Jimmy Song

Developer, Bitcoin

Matt Corallo of Square, who made a significant contribution to the development of the protocol:

This is huge for mining centralization. Instead of being focused on the centralization of pools (which is the world we're in today), we can focus on the centralization of actual miners [and] farm owners!
 

Matt Corallo

Bitcoin developer, Square

Last year, Corallo introduced the BetterHash protocol, which became his own plan for decentralization of mining. Now Braiins and Corallo decided to put their know-how together to present a more effective solution.

Individual miners often pool in order to smooth out the negative effect of the uneven distribution of rewards. This has led to the fact that today only three mining pools control over 50% of the computing power of bitcoin and can directly affect which transactions are included in the blocks.

To prevent this situation, Stratum V2 uses a model that changes the relationship of the miner with the mining pool. In the proposed system, the decision about which transactions to include in the blocks is made by miners, not pools. In addition, the individual right to vote in determining the vector for the development of bitcoin is returned to individual miners.

However, the developers note that mining pools interested in censoring transactions may simply refuse to install Stratum V2, and the problem of centralization consists in the production of equipment, which so far is concentrated in the hands of several large players.

To induce the use of Stratum V2 mining pools should the advantages offered by the protocol in the context of reducing costs, preventing attacks and limiting the possibility of theft of computing power. Now developers are completing the preparation of their solution, but it is already available for testing. It is expected that in the case of a favorable attitude of mining pools, their transition to Stratum V2 will require at least 12 months.