Since the onset of blockchain technology and the cryptocurrency era, numerous virtual currencies have emerged in the market. Nevertheless, only a handful have garnered attention. Dogecoin is one such coin, which is also quite unique, considering it started as a joke.
Dogecoin was launched on December 6, 2013, by Billy Markus and Jackson Palmer. Initially, the coin was meant to be a lighthearted take on Bitcoin. Billy Markus developed the coin and called it Bells; the pretend currency of a videogame. According to him, many hated the concept. Thus, he collaborated with Jackson Palmer, who wanted to create a new and more fun-based crypto. Billy Markus then reconfigured Bells to create Doge.
To make it a fun-based, user-friendly cryptocurrency, the software engineers opted for the Shiba Inu dog, infamous for its bad spelling habit as the coin’s namesake and logo. And, hence, the name Doge instead of a dog. Dogecoin has one of the largest yet vibrant communities, adding to its uniqueness. Compared to Bitcoin’s 10-minute and Litecoin’s 2.5-minute block time, Dogecoin transactions are much faster with a 60 seconds block time. However, Dogecoin also shares certain similarities with Bitcoin and Litecoin. And, one such significant factor is that Dogecoin can be mined.
Before understanding what Dogecoin mining is, one has to know how a cryptocurrency transaction works. Some of the cryptocurrencies like Bitcoin, Litecoin, Dogecoin, among others, are used instead of fiat currencies for online transactions. As these cryptocurrencies are decentralized or not governed and controlled by a single authority, the transactions can be verified and confirmed by anyone. Individuals are rewarded with cryptos for successfully confirming a crypto transaction. And, this forms the gist of cryptocurrency mining.
What is Mining?
Simply put, Dogecoin mining is the process of rewarding dogecoins for miners verifying and confirming a Dogecoin transaction. In general, cryptocurrency mining is the process of creating new crypto tokens, for instance, Dogecoin mining is the process of creating new Dogecoins.
Cryptocurrency mining involves solving complex mathematical problems for verifying and confirming a cryptocurrency transaction. Nevertheless, not all cryptocurrencies can be mined. Some of the cryptocurrencies that are mined are Bitcoin, Litecoin, Dogecoin, among others.
How much time does it take to mine Dogecoin?
Dogecoin is considered one of the easiest that can be mined instead of the high-power mining rigs of Bitcoin. Typically, the time taken for mining a Bitcoin is 10 minutes, while the block time for Dogecoin is 60 seconds. Meaning, it roughly takes a minute to confirm and add a new block (transaction data) to the existing blockchain network of Dogecoin. Blockchain is a public distributed ledger of information containing every Dogecoin transaction chronologically arranged.
Mining rewards vary and depend on the cryptocurrency mined. In the case of Bitcoin and Litecoin, the mining reward is 6.25 BTC and 12.5 LTC, respectively, while for Dogecoin, it is 10000 Doge. Also, comparatively, mining Dogecoin is faster and less expensive when compared to the first cryptocurrency, Bitcoin. However, similar to Bitcoin, one can mine Dogecoin individually (solo) or via the Dogecoin mining pool. In the case of the latter, the reward is shared by all miners registered with the pool. Nevertheless, the chances of striking it are higher in a pool when compared to mining individually.
Can we mine Dogecoin at home?
Yes. Dogecoin can be mined at home. For mining Dogecoin, the miner must have a PC with either Windows, Linus, or OSX operating system; graphics card or GPU (Graphics Processing Units); and a Scrypt ASIC miner. Nevertheless, with many individuals seeking to increase their crypto holdings, cryptocurrency cloud mining has garnered quite a popularity.
Cryptocurrency cloud mining involves mining using third-party or rented cloud service providers. Another option involved registering with a cryptocurrency mining pool where you have to pay a small fee, which may either be monthly, quarterly, or yearly.
How easy is it to mine Dogecoin?
As stated earlier, compared to Bitcoin mining, mining Dogecoin involves less power consumption. Also, the hashing system is Scrypt rather than SHA256, which yet again consumes more power. The bottom line is Dogecoin is one of the easy to mine cryptocurrencies.
What is the easiest and the best way to Mine Dogecoin?
While there are several ways of mining Dogecoin like solo mining, cloud mining, via a mining pool, etc., all the methods have their sets of advantages and disadvantages. Thus, one has to determine the methods based on the cost involved, reward system, and the probability of completing mining operations in a specific timeframe.
Whenever a new Dogecoin transaction occurs, many miners strive to confirm and verify that transaction, and only one miner who first verifies the transaction bags the mining reward. It is for this reason; many consider mining a combination of both skill and luck.
Cryptocurrency mining is one of the sure-fire ways of increasing one’s cryptocurrency holding. Dogecoin is one of the cryptos that are easy to mine as it involves less power consumption. Moreover, as per dogecoin price prediction in a short period, Dogecoin has garnered quite the market cap, which at present is at an all-time high. In this article, we have discussed Dogecoin mining basics while highlighting the different ways of mining Dogecoin.