Dogecoin has become the trend in 2021, and that has attracted plenty of new miners into the network. But is it easy to mine Dogecoin, and if yes, how to do it?
The article tries to answer this. Dogecoin began as a joke – coin with the face of the coin, bearing the image of Shibu-Inu meme.
But it has come a long way since then, with many investors and traders also tipping Dogecoin to be the next digital everyday currency.
The coin has a fanbase spanning almost all countries in the world and the market capitalization is already close to $32 billion.
Dogecoin Mining: How Does It Work?
The blockchain network of Dogecoin follows the same principle of adding new blocks to its decentralized ledger and proving it through an agreement. So, the basic principle governing the blockchain for Doge is ‘Proof of Work’.
In this, the individuals or high-end computers compete with each other to add new blocks and verify the pending transactions, using specialized software and/or machinery.
The principle of mining is simple too – the specialized computers have to crack the hash-code for each block and if they will, they will earn the right to add new data to the new block.
They are provided with the reward of new coins, and that is also known as a ‘block reward’. In the case of Doge, the block reward is 10,000 coins.
Till here, the process is comparable to Bitcoin. But, Dogecoin differs from Bitcoin in one important aspect – its supply is infinite. On the network, new blocks are discovered every minute approximately, and this will continue forever.
There is no maximum supply cap for Dogecoin, and that explains why the cost of each coin is so low despite the virality. Also, the difficulty and the energy required to mine Dogecoin is far lesser than Bitcoin.
This is thanks to the Scrypt hashing algorithm that it uses, which is different from the algorithm Bitcoin uses. As a result, Dogecoin mining is accessible to a vast majority of people, with good enough computers and software.
Also Read: Can Dogecoin Reach $1000?
Different Ways To Mine Dogecoin
In general, mining can be done in three ways – individual mining, through mining pools, or cloud mining. The same kinds of processes can be used for Dogecoin mining as well.
Individual Mining
If you want to mine alone, you can do it through a specialized GPU. Along with this, get software like EasyMiner and you should be good to go.
The GPU is what provides the power to the computer to be able to mine, technically speaking though, helps the computer render high-quality videos and photos.
Mining Pool
A smarter and easier way to mine Dogecoin is to join a mining pool. Here, you join a group and the collective hashing power of all the contributors in the group is used to mine the coin.
Then, a certain percentage of the total mining value is provided to each participant in the pool. At the time of writing, the most popular mining tools to join Dogecoin are – Prohashing, AikaPool, and Multipool.
Cloud Mining
Another way to mine Dogecoin is to rent the hashing power from a data center and pay a monthly or an annual fee for it (as specified in an agreement).
The mining is done at the data center through a mining pool, and the rewards are shared with you corresponding to the amount you pay for computing power. Some popular cloud mining pools for Dogecoin include – Genesis Mining and Nicehash.
Read: Is Dogecoin the Next Bitcoin?
Prerequisites For Dogecoin Mining
If you are interested to do Dogecoin mining, here are some stuff you should have:
- Hardware
This is what powers the mining. Depending on the hardware you choose, the computing power of your system will vary. The hardware can be either a CPU, GPU, or an ASIC. The ASIC is a specially designed integrated circuit used for generating the hashes used in mining.
- Software
Once the hardware is decided, you need to get the software that will link with it and provide you with the required controls to mine. Note that the software will vary depending on the type of hardware you choose. The top ones at the time of writing include CPU Miner by Pooler for CPU, EasyMiner for GPU as well as ASICs.
- Wallet
This is the place that will store your mined coins. The wallet can either be online, software, or even hardware. But regardless, it will have a private and a public key. The public key is what you can share to send and receive crypto. But never share the private key.
Can Dogecoin Be Mined?
Yes Dogecoin Be mined. You cam mine dogecoin in different ways like Individual mining, mining pool and Clouding mining. Prerequisites for dogecoin mining is hardware, software and a wallet.
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