What is Merged Mining?
Auxiliary Proof of Work (AuxPoW), also known as merged mining, allows miners to mine multiple cryptocurrencies simultaneously without additional computational power. This mining method benefits both the primary and secondary chains, enhancing security and increasing rewards for miners without extra effort.
Popular Mined Coin Pairs
- LTC + DOGE (Litecoin + Dogecoin) is by far the most popular and widely adopted pair in this dual-mining method.
Several other cryptocurrencies support mining across multiple chains, particularly those utilizing AuxPoW technology. Here are some of the notable pairs:
1. Namecoin (NMC) + Bitcoin (BTC)
- Algorithm: SHA-256
- Description: Namecoin, one of the first cryptos to implement dual mining with Bitcoin, is known for its decentralized DNS system. Miners can process both Bitcoin and Namecoin transactions simultaneously.
- Mining Pool: Supported by major Bitcoin pools like F2Pool and AntPool.
2. Viacoin (VIA) + Bitcoin (BTC)
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- Algorithm: SHA-256
- Description: Viacoin enables fast, decentralized transactions and supports mining alongside Bitcoin. It’s built for speed and aims to provide a decentralized asset transfer layer.
- Mining Pool: Found on dual mining pools such as Prohashing and KanoPool.
3. Elacoin (ELC) + Bitcoin (BTC)
- Algorithm: SHA-256
- Description: Though less common, Elacoin is a crypto that can be mined along with Bitcoin using SHA-256. It’s another example of dual mining benefits.
- Mining Pool: Smaller pools support Elacoin alongside Bitcoin.
4. Myriad (XMY) + Other Cryptocurrencies
- Algorithm: Multi-algorithm (supports SHA-256, Scrypt, Groestl, Skein, and Yescrypt)
- Description: Myriad supports multi-chain mining through its multi-algorithm framework. It enables simultaneous mining of SHA-256 and Scrypt coins.
- Mining Pool: Supported by a range of mining pools for multi-algorithm cryptos.
5. Syscoin (SYS) + Bitcoin (BTC)
- Algorithm: SHA-256
- Description: Syscoin is renowned for its blockchain infrastructure and decentralized marketplace. It can be mined alongside Bitcoin through AuxPoW.
- Mining Pool: Pools like F2Pool support Syscoin and Bitcoin dual mining.
6. DogeCash (DOGEC) + Litecoin (LTC)
- Algorithm: Scrypt (similar to LTC + DOGE)
- Description: DogeCash, designed with masternode infrastructure and decentralized finance in mind, is mined in conjunction with Litecoin via Scrypt.
- Mining Pool: Available on pools that allow Scrypt-based dual mining.
How Multi-Chain Mining Works
Multi-chain mining, or mining across primary and auxiliary chains, allows miners to work on both a main chain (e.g., Bitcoin or Litecoin) and a secondary chain (e.g., Dogecoin or Namecoin) without extra computational load. When miners discover a valid block for the secondary chain, they can submit it, and the secondary blockchain uses AuxPoW to verify and accept the block.
Advantages of Multi-Chain Mining
- Improved Network Security: Smaller chains benefit from the hashpower of larger chains like Bitcoin or Litecoin, increasing overall network security.
- No Additional Resources: Miners do not need more hardware or power to process both chains—one setup handles both networks.
- Boosted Profitability: Miners earn rewards from both the primary and auxiliary blockchains, making their operations more profitable.
Disadvantages of Multi-Chain Mining
- Limited Support: Not every cryptocurrency is compatible with AuxPoW. Only certain coins, such as Namecoin or Viacoin, can be mined this way.
- Lower Standalone Mining Rewards: With more hashpower dedicated to mining multiple coins, auxiliary coins can become more difficult for individual miners to mine.
Conclusion
While Litecoin and Dogecoin are the most recognized pairs for multi-chain mining, other coins—such as Namecoin, Viacoin, and Syscoin—are also benefiting from SHA-256 and Scrypt-based mining processes. Dual mining is a great way for miners to increase their profits without additional power consumption.