A variety of coins are born every day in the world of cryptocurrency. Dogecoin (DOGE) stands out with its unique style.
Billy Markus and Jackson Palmer created DOGE as an internet meme in 2013 to develop a fun and friendly digital currency. Featuring the Shiba Inu as its logo, this meme-based currency unexpectedly gained widespread support. Particularly after Elon Musk frequently mentioned it on social media, DOGE’s popularity and value skyrocketed.
Over time, DOGE has become a symbol of internet culture and gradually developed more application scenarios, such as online payments. This article will delve into the basics of Dogecoin and mining essentials to help everyone fully understand this unique cryptocurrency and prepare for mining DOGE.
Basics of Dogecoin
Dogecoin is built on Litecoin’s blockchain architecture, so it shares many technical characteristics with Litecoin. For example, both Dogecoin and Litecoin use the Scrypt algorithm, which is more memory-intensive than Bitcoin’s SHA-256 algorithm. This was originally intended to reduce the centralization risk posed by ASIC miners. However, with technological advancements, current mining equipment for the Scrypt algorithm is also primarily ASIC miners.
Unlike Bitcoin’s 10-minute block generation time and Litecoin’s 2.5-minute block time, Dogecoin has a block time of about 1 minute. This means the Dogecoin network can confirm transactions quicker, making it particularly suitable for small, fast transactions. Additionally, a notable feature of DOGE is that it does not have a halving or reduction mechanism, and its total supply has no upper limit.
Dogecoin’s success is largely attributed to its community culture. The Dogecoin community has promoted the popularity of DOGE through memes and demonstrated the positive uses of cryptocurrency through various charitable activities, increasing DOGE’s acceptance among global users. The community’s driving force and unique cultural charm have made DOGE one of the most popular cryptocurrencies today. Currently, DOGE is commonly used for online tipping, charitable donations, and electronic payments, and some Tesla products have even begun to support DOGE payments.
How to Mine DOGE
DOGE is currently the second most profitable PoW (Proof of Work) coin, second only to BTC. According to MiningPoolStats, the daily mined value of DOGE is substantial, making DOGE mining one of the top choices for PoW miners.
Source: MiningPoolStats
Early on, to better secure DOGE’s network and encourage more miners to join, developers adopted Auxiliary Proof of Work (AuxPoW), enabling merged mining of LTC and DOGE. This means miners can mine both cryptocurrencies simultaneously without extra computational power. Currently, most miners opt for this merged mining method for DOGE mining.
Considering the continuous increase in the network’s hash rate, it’s best to prepare ASIC miners, such as the Antminer L7, before mining DOGE. You can check various miners’ earnings and power consumption on ViaBTC’s miner profit ranking. Additionally, considering your electricity costs before starting mining can help you better estimate the payback period and overall profitability.
After preparing the mining equipment and configuring the appropriate mining software, you should choose a mining pool that supports merged mining, such as ViaBTC. As the leading mining pool for LTC and DOGE, ViaBTC offers very stable earnings. Its PPLNS payout method settles every ten minutes, while the PPS+ method settles hourly, ensuring efficient distribution of earnings.
Once connected to a merged mining pool, you can mine LTC and DOGE simultaneously. Typically, you need to prepare wallets for both DOGE and LTC to receive mining rewards. For users who do not want to set up their wallets, ViaBTC supports auto conversion of earnings to USDT or free withdrawals to the CoinEx exchange, providing convenience for users to exchange at any time.
Today, Dogecoin is not only a cultural symbol in the cryptocurrency space but also a potential project favored by many. Miners and investors can make better decisions based on DOGE-related information to utilize the potential value of this unique cryptocurrency.
Disclaimer: The content of this article is for reference only and does not constitute any investment advice.
