Dogecoin has the same algorithm as Litecoin, but with some changes. It has some differences from Litecoin: block creation is once a minute, which is 2.5 times faster.
- Therefore, confirmation of transactions is also faster. The confirmation procedure takes about 6 minutes, while bitcoin transactions take an hour and Litecoin is bout 15 minutes.
- The coin's mining complexity is recalculated once every 240 blocks, approximately updating every 4 hours. The currency becomes less vulnerable to "raids" by miners. If at that time the rate was artificially inflated it will stabilize in 4 hours.
Algorithm and Current Hashrate
Dogecoin was developed under the "Scrypt" algorithm, this was done so that this cryptocurrency could not be mined using specialized ASIC chips, which were already used in mining Bitcoin. However, this time did not last long, and since about the middle of 2014 ASICs that were based on the Scrypt algorithm began to be widely used. For almost the entire time of the network's existence, the complexity of dogecoin mining grew up, and CPU and GPU miners were already finding it difficult to compete with the more energy-efficient ASIC miners.
Dogecoin's hashrate and complexity have literally skyrocketed. Today it's not profitable to mine this cryptocurrency separately, and many are switching to pools that support combined Doge and Litecoin mining. Each digital currency, Dogecoin, in particular, has its own mining difficulty. It determines the number of coins mined per unit of time. And the higher these figures are, the fewer coins will be mined. You may see the current Dogecoin hashrate here at CoinWarz.
The graph shows the changes in the network hashrate over time, and the mining of Dogecoin, given this data, resembles an ascending staircase with small fluctuations. The higher these steps are, the fewer coins the miner will get. It is very simple - the developers of Dogecoin have laid down a specific amount of coins to be mined. If more coins are mined in a certain period of time than it is supposed to be, the difficulty of mining will increase.
This is all done in order to reduce the rate at which digital money is mined. If the difficulty of mining on the network is reduced from the planned parameters, then finding a block is faster. If interest in cryptocurrency increases, it is logical that there will be an increase in difficulty and cost over time. The difficulty of mining the token shows that the currency is in high demand, so its price on the market is increasing.
How to mine Dogecoin
In order to mine DogeCoin, the first thing to do is to get a wallet address where the mined coins will be sent. To do this, you should install a Doge wallet on your computer.
Link to download Dogecoin wallet.
There are three wallets available from the developers: Dogecoin Core (for Windows, Linux, macOS); Multidoge (for Windows, Linux, macOS); Dogecoin Wallet for Android.
The process of Dogecoin mining itself is the calculation of header blocks according to the current hashrate. The mining, in fact, is done by a computer or an asic. If the first one picks up the key, all the bounty for solving the block will be sent to your wallet.
There are 4 main ways to mine Dogecoin:
- Using a computer.
- By pooling together in a mining pool.
- Leasing capacity in the cloud or cloud mining.
- ASIC mining.
Mining Pools for Dogecoin
The current hashrate difficulty level of Dogecoin mining is so high that you can't make a profit alone. There are pools for this purpose, where everyone can connect his or her own equipment. Existing dogecoin mining pools:
- Aikapool.com is the oldest and one of the largest mining pools that supports a number of Scrypt-based assets;
- Litecoinpool.org is one of the best Litecoin and Dogecoin market pools. It uses a Pay-per-share system;
- Multipool.us - suitable for combined mining Litecoin Dogecoin, that is, the user can mine two coins simultaneously without losing power;
- Prohashing.com - the distinguishing feature of the pool, presented on several markets, is that the user does not have to take the reward with mined coins - you can choose to enroll in any supported cryptocurrency.
Software for Mining Dogecoin
These programs with a GUI allowing you to effortlessly mine Dogecoin on your computer's operating system. It's an easy starter, so the most popular ones are:
- CGMiner for ATI. Setting up CGMiner with a full description and instructions from the official developer is on the bitcointalk forum.
- Cudaminer for Nvidia GPUs. Read how to properly configure Cudaminer according to the developer's instructions on the bitcointalk forum.
Solo mining is the mining of coins by yourself, that is, searching for blocks only on your computer. Nowadays it is not effective. This type of mining requires a powerful supercomputer, which, in turn, will consume a lot of electricity. The disadvantages of this method are that it can take a long time to find a block. And if the block solution is not found, there will be no reward either. As for today, just join a pool (links are above).
Dogecoin Cloud Mining
Dogecoin cloud mining is presented as a lease of specialized equipment. The profitability of cloud mining depends on the power and the number of mined coins at the current value, i.e. at the end of the purchased contract, the invested investment will bring a certain share of profit.
This kind of mining is popular because a lot of users do not want to buy expensive equipment, set up video cards, and spend a lot of time maintaining it. There are a lot of services that provide this type of service, but you need to find a time-tested and reliable one. The only cloud mining service that has docs is the old tried-and-true Eobot.
The first thing to do is to create an account, get acquainted with prices and offered capacity. When all the conditions are fulfilled, you will be able to see how the amount in your Dogecoin wallet is increasing every day.