Dogecoin, a meme currency founded on the “Doge” meme, has been phenomenally popular over the past couple of years. A meme joke that began, Dogecoin has become an actual cryptocurrency with users and miners. If you are to engage in Dogecoin mining, you would be interested in knowing how it functions against Bitcoin and other coin mining. In this article, we will analyze the most significant distinctions between Dogecoin mining and Bitcoin mining and other cryptocurrencies.
What is Dogecoin Mining?
Let us then establish what mining Dogecoin entails. Just like Bitcoin, Dogecoin is a blockchain system whereby transactions are verified and added on an open record of transactions. Miners provide computer power to solve complex mathematical problems, and for being successful, they receive a new block to add on the Dogecoin blockchain. They are compensated with new Dogecoin coins.
But Dogecoin mining is less stressful than Bitcoin mining, and where the variations really matter is where the split happens.
How Dogecoin Mining Diffs with Bitcoin Mining
Consensus Mechanism:
Both Bitcoin and Dogecoin are founded on proof-of-work consensus algorithms, with different algorithms being applied in each of them. Bitcoin relies on a base established in the SHA-256 protocol, whereby the miners are required to solve very complex mathematics problems as a prerequisite for access to secure transactions. Scrypt is applied for Dogecoin, which boasts lower computational needs compared to the SHA-256 protocol. This makes it more appropriate for masses of users and mining pools to mine Dogecoin.
Mining Hardware:
Hard mining type is also an area where the difference lies. Mining Bitcoin will be facilitated with the assistance of ASIC machines, i.e., professional mining machines which are extremely powerful but costly. Mining Dogecoin being a Scrypt protocol-based cryptocurrency can be carried out with cheap hardware, i.e., GPUs. It is easier to mine with standard gaming laptops or rigs, thus simpler for new miners to join in.
Block Time and Reward
A variation also includes block time and reward in mining.
Bitcoin block time is around 10 minutes and it would be a 10-minute delay in order to get a new block to the block-chain. A fast block time of just 1 minute can be seen in Dogecoin. It implies that Dogecoin miners are receiving more reward than Bitcoin miners. Dogecoin’s 10,000 DOGE block reward per block is greater than Bitcoin’s decreasing block reward of 50 BTC per block initially and currently 6.25 BTC. Total Supply: Dogecoin differs in the composition of its total supply.
The total supply of Bitcoin is limited to 21 million coins, whereas that of Dogecoin is unlimited.
Therefore there will always be new Dogecoin to add into circulation, and therefore it is inflationary whereas Bitcoin is deflationary. Although this is an influence on the long-term value of Dogecoin, it also prevents Dogecoin miners from realizing the same operating profits that Bitcoins’ miners see in the long term. Mine Dogecoin If you do wish to mine Dogecoin, the fundamentals you will need to accomplish are: Get the Right Hardware
As mentioned, you can mine Dogecoin on a GPU, but as an alternative, you can use an ASIC miner that supports Scrypt-based coins. Make sure the hardware is of good quality and the power supply unit for the same is decent.
Select a Dogecoin Wallet
To mine, you will require a wallet where you can store your rewards. You can purchase mobile, internet, or hardware wallets for Dogecoin. Choose a straightforward one that is simple to use and keep your money safe.
Join a Mining Pool
Solo mining of Dogecoin would be difficult because the network is competitive. But the majority of the miners desire to pool their processing power with other miners so that they are in a better position to solve blocks and get rewards. AikaPool, Prohashing, and EasyHash are the most popular mining pools for Dogecoin.
Install Mining Software:
Once you have installed your hardware and wallet, you will be installing your mining software. There are a variety of mining software programs that you can use when trying to mine Dogecoin, and some of the most widely used of these software programs are CGMiner, EasyMiner, and MultiMiner. With these software programs, your hardware will be linked to your mining pool, and you will set up your hardware mining.
With all sets, you now have the preparedness to mine Dogecoin. Check your mining rig from time to time in an attempt to determine that it works at its optimum and with the most power-efficient methods. Check power usage since it consumes a lot of power, particularly in the high-speed hardware.
Conclusion
Dogecoin mining is a wonderful experience of living in the world of cryptocurrency, and even though it is very much like Bitcoin mining, it does have its differences. Right from using the Scrypt hash function to the shorter block time and larger reward, Dogecoin mining is a fresh experience for one who wishes to live in the world of crypto mining.
If you’re looking for a more accessible and cost-effective way to mine cryptocurrencies, Dogecoin presents an attractive option. Just make sure to do your research, get the right hardware, and join a mining pool to maximize your chances of earning rewards.
To learn more about Dogecoin and other cryptocurrencies, visit Blockchain77.com for the latest news, guides, and resources on the digital asset world.