With Dogecoin's price surge during early 2021, the coin is fast becoming attractive for crypto miners, but just how does Dogecoin mining work?
As bitcoin mining's difficulty continues to climb, miners may soon look towards other cryptocurrencies instead.
So, grab your ASIC miner, and let's jump into it.
How is Dogecoin mined?
As an altcoin, Dogecoin's mining system works similarly to that of bitcoin and Litecoin, for example.
Dogecoin uses a variant of the Proof-of-Work algorithm whereby miners compete over verifying transactions in 'blocks'. Each block rewards 10,000 DOGE, with 1 block mined every minute. At the time of writing, 10,000 DOGE is worth $2400.
Miners will earn block rewards if they are first to find the correct 'hash' for the transactions from the Dogecoin blockchain. Given the competition in the network, many DOGE miners may opt to join a mining pool rather than going solo. This should give them a greater chance of consistent payouts.
A mining pool incorporates all of its members' power to give itself a better chance of successful mining, rewarding miners based on the proportion of power contributed.
Many of these pools engage in merged mining, often simultaneously mining for Litecoin. As Dogecoin is a fork of Luckycoin, an altcoin previously forked from Litecoin, it shares the same Scrypt algorithm used for mining.
How long to mine 1 Dogecoin?
It is impossible to mine just 1 Dogecoin, as each block has a fixed reward of 10,000 DOGE. This means that no matter what, it will take one minute to mine any Dogecoin, provided you are successful.
To mine just 1 DOGE as part of a mining pool, you would need to contribute at least 0.01% (possibly more depending on fees) of the total hash rate.
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