Cryptocurrency 101: Find the Hidden Power of Merged Mining Now!

What is Merged Mining?

Merged mining, or Auxiliary Proof-of-Work, enables miners to secure and validate multiple blockchains simultaneously using the same computational effort, enhancing security and operational efficiency across interconnected networks.

First implemented by Namecoin in 2011, this innovative approach has inspired numerous projects to adopt it as a way to share security while maintaining decentralization. Merged mining allows miners to mine multiple cryptocurrencies with a single rig, which is also known as auxiliary proof of Work (AuxPow). Essentially, all the involved cryptocurrencies must be using the same algorithm.

How Does Miner Receive Payout From Merged Mining?

Miners often receive their reward in several ways, which is either by FPPS mode or PPLN solo modes. Typically, In FPPS mode, When you mine, you’ll get paid for both the main coin you’re targeting and any additional coins through merge mining. On the other hand, in PPLNS modes, this phrase stands for “pay per last N shares”. This is essentially a share-based profit distribution where miners are being rewarded according to how many shares they submit relative to the total shares submitted by all miners. In the occasional event of an airdrop, miners would be rewarded with additional token coins.

Notable Merged Mining Examples

Merged Mining Combo:

1. Name coin and Bitcoin
2. Rootstock (RSK) and Bitcoin
3. . Dogecoin and Litecoin

Several notable cryptocurrencies have embraced merged mining to strengthen their networks. For instance, since 2011, Namecoin has given users the ability to securely register domain names while tapping into Bitcoin’s hashing power. Namecoin can benefit from the boosted operational efficiency. In 2014, Dogecoin turned to merged mining with Litecoin, a strategic move to enhance network security after miner participation dwindled due to reduced rewards. Similarly, Rootstock (RSK) uses Bitcoin’s robust network to power its smart contract platform, benefiting from the added security of merged mining.

How To Join Mining Pool For Merged Mining?

The main algorithm adapted for merged mining revolves around SHA-256 and Scrypt. Namely, this has been relevant for Dogecoin (Doge) and Litecoin (LTC) since 2014. The auxiliary chain, in this case,e Dogecoin, the “child blockchain,” benefits from the parent blockchain, Litecoin, through an increased hash rate and enhanced security. Additionally, the hash rates of Dogecoin and Litecoin are closely correlated due to their shared use of the Scrypt algorithm in merged mining. This ingenious structure protects the child blockchain from 51%of attacks by leveraging the security and hash rate of the parent blockchain.

Generally speaking, there are various types of meme coins that can be mined with dogecoin. Dogecoin can be merged with several Scrypt-based cryptocurrencies, including Litecoin, Bellscoin, Luckycoin, Pepecoin, and Junkcoin. Read more about Dogecoin Mining Here.

Types Of Mining Pools Available For Merged Mining

Select a Mining Pool that Supports Joint Mining Join a mining pool that supports multiple cryptocurrencies. Bt-miners recommend F2Pool and ViaBTC for dogecoin merged mining. These two mature and established mining pools both support merged mining of the following coins: LTC, DOGE, BELLS, LKY, PEP, and 5 types of coins in total. F2Pool stands out among its competitors for its relatively low fee structure. ViaBTC has relatively robust mining pool services for various coins, along with a variety of payout methods for experienced miners. For professional miners seeking high proficient dogecoin miners, We recommend Antminer L9 or ElphaPex DG1+. As for amateur miners who have just begun their crypto-mining journey, we suggest DG Home1 and Goldshell E-DG1M.

 Antpool, founded in 2014, and operated by Bitmain Technologies, on the other hand, supports joint mining of 6 coins (LTC, DOGE, BELLS, LKY, PEP, JCK). Other than the traditional dogecoin merged mining pool, there are specific mining pools that support the SHA-256 algorithm as well. Namely, bitcoin merged mining pools. For beginner crypto lovers first venturing into this arena, we would strongly recommend the oldest mining pool for cryptocurrency. Slush Pool is a top choice for Bitcoin miners, especially those looking to maximize profits through merged mining with Namecoin. As the world’s first mining pool founded in 2010, it offers strong security and seamlessly merged mining for both Bitcoin (BTC) and Namecoin (NMC). With over 1.25 million Bitcoins mined and 140,000 active rigs, it ensures consistent payouts through the PPS+ model. The platform also provides advanced tools like custom firmware, a mobile app, and the Stratum V2 protocol for enhanced security. Another point to note is you need to be equipped with ASICs that support SHA-256 and Equihash algorithms. Some popular models of BT-Miners Carries are Antminer S19 Pro, Antminer S17+, and Bitmain Antminer Z15. Goldshell Mini-Doge Pro.

Setting Up Dogecoin Merged Mining Step-by-Step

1. Setting Up Your Dogecoin Miner

Before you start the halving for any type of coins, please double-check to make sure to set up your mining rig with Litecoin and Dogecoin mining rig with its compatible mining software that supports dogecoin mining. There are some popular reliable options including CGMiner, Easy Miner, and MultiDoge. Another important thing to keep in mind would be setting up a bat file.

2. Register Wallet Addresses for Combined Mining Coins to receive rewards from combined mining of DOGE, BELLS, LKY, and PEP, you’ll need wallet addresses for each coin.

Here are recommended wallets for North American users:

LTC: Binance US, Coinbase, Robinhood

DOGE: Binance US, Coinbase, Robinhood

BELLS: Gate.io, CoinEx

LKY: CoinEx PEP (Pepecoin): Gate.io, CoinEx

JCK (Junkcoin): CoinEx

3. Connect Your Asic Miner With Designated Merged Mining Pool. We will use Antpool for today’s example.

4. Start accumulating your cryptocurrency after you are all set up.

How To Connect Your ASIC Miner with The Mining Pool?

• To set it up:  Log into your Antpool account.

• Search around up right corner for the word:” Register”

• Simplify and enter your designated e-mail. You will receive a confirmation link with the verification code attached.

• Select LTC/ Doge/ and associated coins in the payment settings.

• Add wallet addresses for designated coin types DOGE, BELLS, LKY, PEP, and JCK. Please click on configure under your username

• Follow the prompts to link and enable the wallet addresses for combined mining.

• Meanwhile, to have a fully functioning mining rig, you must connect the mining pool with your ASIC Miner Rig in the following ways. Remember to enter the related stratum address when configuring and connecting your doge coin miner with Antpool as shown above. You will want to run a preliminary demo before officially starting mining.

How To Read Mining Pool Stats As A Crypto Beginner?

Example of Mining Pool Stats

• Reported Hashrate: 250 EH/s
• Estimated Hashrate: 240 EH/s
• Blocks Mined: 150
• Payout Method: FPPS
• Pool Luck: 95%
• Market Share: 20%

Interpretation:

• The pool has a strong reported hash rate of 250 EH/s, meaning it’s competitive. Hashrate is a key metric to track when you decide to join a merged mining pool,
  as a higher hash rate increases the pool’s likelihood of discovering blocks and earning rewards
• The estimated hash rate of 240 EH/s shows it’s performing well but a bit below its peak.
• The pool has mined 150 blocks, meaning it’s consistent in mining and distributing rewards. This indicates the number of blocks that can be successfully mined in a given period, such as one day or one week.
• The FPPS payout method ensures miners get steady earnings.
• A pool luck of 95% means the pool has been slightly unlucky, mining fewer blocks than expected. This demonstrates how the pool’s actual block discoveries compare to expectations
• With a 20% market share, the pool plays a significant role in Bitcoin mining. This percentage shows the size and influence of the mining pool.