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How to Mine Dogecoin: Complete Guide For Beginners

  • Vera Thornpike
    📚 WikiCoin

    Find out in which ways you can obtain Dogecoins


How to Mine Dogecoin: Complete Guide For Beginners
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Being the 27th largest capitalized cryptocurrency, Dogecoin can still be mined. Find out how to obtain the coins, which hardware and software suit this purpose better, and where to store the ‘dogmoney.’

If mining Bitcoin is too mediocre for you, try altcoins. There’s a myriad of new cryptocurrencies that can be obtained through mining, and one of the easiest catches is DOGE. It’s not a joke– the famous meme dog has become so popular that now it’s the ‘face’ of a virtual currency.

Why Dogecoin?

Before we start learning how to mine Dogecoin, let’s make a short historical reference. In 2013, two friends, an Australian named Jackson Palmer and an American named Billy Markus, decided to create their own cryptocurrency. Everyone was too serious about crypto, and they wanted their coin to be friendlier than the other solutions. That’s why they did what no one expected– uses the famous Shiba Inu dog from a meme for their currency.


image

Desc: The famous Shiba Inu dog is the mascot of Dogecoin

Alt: Shiba Inu dog meme is the face of Dogecoin

In fact, their idea was fully realized: today Dogecoin is widely used for online tipping and charity. It has the 27th largest market cap in the crypto niche, and its value seems only to grow further. Besides, this is one of the easiest currencies to obtain so far. In order to perform Dogecoin mining, you don’t have to work like a dog. There are different ways to get the ‘dogmoney’ and the time is ripe to see how it works.

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What is DOGE Mining?

To put it simply, this is the process of getting a reward in DOGE coins for verifying transactions made on the Dogecoin Blockchain. Your computer acts like a node that confirms and checks the transactions– it involves solving complicated mathematical problems. The newly confirmed blocks of transactions are added to the blockchain. What’s your role in the process? You need to provide a consistent level of ventilation and the power supply for the hardware.

Just like with other cryptocurrencies, DOGE coin mining is a bit of a lottery– some computers perform calculations faster than others, and only the quickest and most powerful ones win the reward. The node that solves a mathematical problem first is rewarded.

One of the main reasons to mine Dogecoin is the fact that it’s easier to obtain than many other altcoins. Look how Dogecoin mining works compared to other cryptocurrencies:

 

Bitcoin

Litecoin

Ethereum

Dogecoin

Algorithm

SHA-256

Scrypt

EtHash

Scrypt

Difficult

3511060552899.72

6802626.0955

3252245976765090

2798252.1991

Block time

10 min

2.5 min

15 seconds

1 min

Reward per block

12.5 (~$150K)

25 (~$3.027)

3 (~$675.02)

10,000 (~$27,36)

How to DOGE mine?

If you have decided to become a Dogecoin miner, you have three options:

  • mining solo,
  • using Dogecoin mining pool,
  • try cloud mining.

The first and second options suppose using your own hardware for mining. Let’s take a closer look at the equipment that you’ll need.

Dogecoin mining software and hardware

Before you start, prepare a few essentials:

  1. A personal computer with Windows or Linux OS.
  2. Internet connection.
  3. A few GPUs.
  4. Dogecoin wallet to store your money (visit Dogecoin website and download the wallet).

The more powerful hardware you use, the higher is your chance to snatch the reward from competitors’ nose. There’s the whole range of GPUs (graphic processing units) to boost the efficiency of your PC. If you’re a starter, the following will do:

  • SAPPHIRE Pulse Radeon RX 580 ($426.98)
  • Nvidia GeForce GTX ($579.99)
  • ASUS RX Vega 64 ($944.90)

If you have a few hundred bucks to spare, look for a Scrypt ASIC Miner– it’s a small piece of hardware made specifically for mining scrypt-based currencies, such as Dogecoin and Litecoin. Despite its size, it’s a very efficient solution (mind that such units heat up quickly, you need to establish a proper cooling system). Bitmain Antminer, BW L21 Scrypt Miner, and Innosilicon A2 Terminator are top-notch variants.

image

Desc: Bitmain Antminer S9– the real mining monster for advanced crypto hunters

Alt: Bitmain Antminer S9

To get maximum out of mining, you will also need a special software solution, such as:

  • Cudaminer for Nvidia cards
  • SgMiner or CGMiner 3.72 (specifically this version, the following will not work) for ATI.

Mining Solo

As soon as you buy and install all required hardware and software, you can start your DOGE coin miner career. Simply open the mining program you’ve installed and start the process. You will see a lot of unknown graphs on the screen– these display how the mining process goes. As soon as you get a block, the reward will be sent to your wallet. Be ready to provide your computer with energy on a 24/7 basis.

In fact, mining solo isn’t efficient as it used to be– the mathematical problems are harder and harder to solve, so the chances that someone else gets the reward and you stay with nothing are pretty high. Typically, solo miners are either beginners or geeks who’re engaged in the process itself. For this reason, people usually resolve to the second method– collective mining.

Dogecoin mining pools

That means that you unite force with other miners and you perform the process collectively. The computers of your team all work together to solve mathematical problems, which boosts efficiency considerably. As soon as a block obtained, the reward is distributed according to the contribution of parties, so it’s quite fair.

The Internet is full of different mining pools– it’s better to choose well-established websites that have a good reputation. Also, you should mind the fees imposed because they can differ dramatically. As soon as you register on a website, you need to create a ‘worker’ by giving it login and password. We highly recommend setting up an automatic withdrawal of rewards to the wallet (most often, money is transferred as soon as your earnings reach a certain pre-set threshold).

image

Desc: Choose the leading scrypt mining pools for getting DOGE

Alt: the best scrypt mining pools

Cloud mining

Not ready to invest heavily in mining Dogecoin? Then cloud mining is the right solution for you. In this case, you just lease the capacity from a third-party provider and get crypto-loans under a contract. All the work is done instead of you but be ready to pay a great fee. Read customer reviews, as well as rental terms offers– make sure that the commission is agreeable for you (as a rule, it depends on the duration of contract). Of course, it’s better to engage in Doge mining for a longer period (from six months to two years). In this case, you will be able to earn enough crypto without serious investment. Large websites usually offer a large discount for clients ordering their power for a long period. Ideally, there should also be an option of instant withdrawal. The most reliable solutions so far are Dogemining.info, Eobot.com, and a few others.

image

Desc: DogeMining account screenshot

Alt: DogeMining website

Conclusion

If you want to jump on the bandwagon and start earning crypto, DOGE mine is an optimal choice. It’s user-friendly and very simple even for beginners, so you should surely add it to your crypto portfolio. It’s up to you which method of mining to select– anyway, your efforts and time can pay off greatly down the road, because the world is raving about the famous Dogecoin mascot, and it only continues growing in price.

Cover image via u.today
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SegWit Explained: What Is Bitcoin's Segregated Witness?


SegWit Explained: What Is Bitcoin's Segregated Witness?
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Segregated Witness (SegWit) is an implemented protocol update that solves the problem of the Bitcoin’s blockchain transaction malleability. The point is in one of the transaction components. The first part is the Basic information (the sender, the amount, the recipient). And the second part — Witness — carries a special cryptographic signature (code). This code is a confirmation of the virtual transaction in Bitcoin currency.

Witness’ signature creates difficulties for the blockchain because the form can be changed after the appearance in the block. Bitcoin will still reach the addressee, but the construction of new transactions will be complicated because they all go along the chain. Unconfirmed transactions slow down the speed of new ones, reducing the overall Bitcoin network performance due to pulling data from a past virtual transaction.


The current Bitcoin protocol makes it difficult to implement large-scale updates, as well as to conduct fast transfers. The problematic network feature is called the “transaction malleability”. Against this background began the movement for the introduction of SegWit.

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The goals of SegWit

Segregated Witness must restore the Bitcoin network and adapt the blockchain technology to new realities. The main task is to solve transaction malleability and scalability. SegWit optimizes the transaction process and creates conditions for the subsequent increase in virtual block size. SegWit has to solve such problems and questions:

  • If Witness signature is segregated from a block of Bitcoin increases size and bandwidth of the entire network.

  • The transaction size is reduced by 2 times.

  • Reducing the blockchain size, which saves disk virtual space for nodes.

  • Starting and synchronization of nodes speed up significantly.

  • The enhanced spam protection mechanism of Bitcoin currency.

It follows that SegWit addresses the most important aspects for Bitcoin: scalability, protection level, transactions speed, and interaction with new protocols.

The story of Segregated Witness

The first talk about the need to modernize Bitcoin’s protocol and about possible ways to solve the transaction malleability problem appeared in 2012. Bitcoin-Core developers Russell O’Connor, Luke Dashir, Gregory Maxwell and others became initiators. Active actions for the currency began in the summer of 2014, when Maxwell, Pieter Wuille and cryptographer Adam Back launched the blockchain research company called Blockstream. In this environment, they found a solution to Bitcoin’s problem. It was decided to separate special cryptographic signature from the main part of the transaction. They called this function Segregated Witness.

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In parallel with Segregated Witness, the idea of ​​optimizing Bitcoin’s blockchain by increasing the block size (the default is 1 megabyte) appeared. It could be realized only through a hard fork — a rigid network separation through the introduction of changes incompatible with the current protocol. SegWit, on the contrary, was a soft fork or partial update of Bitcoin’s protocol. To implement it, the Witness’s signature must be segregated in a new part of the virtual block. And its anchor (Merkle Root) recorded in the transaction of miners’ fees. As a result, more space remained in Bitcoin’s block, and its size increased without actually increasing. This result allowed us to solve the problem of the Bitcoin network scalability, which was also quite acute.

After the appearance of the second idea, a real war broke out, including among the developers of Bitcoin currency. Miners and pools couldn’t come to a consensus from 2015 to August 2017. As a result, SegWit was accepted and activated. A special code called BIP91, developed by Bitmain engineer James Hilliard, turned out to be the best compromise among all the proposals received over several years.

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Image by 123rf

 

The main advantages of Segregated Witness

The list of benefits which will be received by the Bitcoin network with the introduction of SegWit is very large, we focus the main ones:

  1. The third party will lose any options of signature’s changing, which will facilitate the development of new smart contracts.

  2. Dividing special cryptographic signature from Basic data will significantly increase transaction size and Bitcoin’s blockchain bandwidth, and the average virtual block size will be 1.7-2 MB.

  3. With Segregated protocol, transactions in Bitcoin currency will remain available to participants who have accepted SegWit, and those who refuse to do so. At the same time, users with an updated protocol will work with smaller commissions.

  4. The adoption of SegWit greatly simplifies the implementation of new soft forks, allowing to introduce new ideas to improve the security of Bitcoin currency.

  5. The block validation rate and transaction security will increase due to a change in the signature hash function from linear to exponential.

  6. A segregated signature will reduce the currency’s charging fees.

  7. SegWit will have a positive impact on the Bitcoin ecosystem here and now, as well as create a springboard for further development.

Arguments against SegWit

Even today, Segregated Witness is not fully accepted by the Bitcoin network. Sceptics believe that this will take years because the number of nodes has already exceeded 10,000. An increase in the number of participants and a virtual transaction will result in a Bitcoin’s block size of 2 MB is small for the needs of the ecosystem.

Partial centralization of Bitcoin’s system due to the implementation of the SegWit protocol will increase the number of unconfirmed transactions, which will strip the network and make currency vulnerable to hacker attacks.

Some Bitcoin developers and pools believe the adoption of SegWit is dictated by the economic gain of Blockstream, which owns the Lightning Network protocol. Its technical implementation in the Bitcoin network without Segregated Witness is almost impossible.

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Will the time come for SegWit2x?

Speaking about the implementation of Segregated Witness and Bitcoin currency, it is impossible not to mention the postponed indefinitely SegWit2x. The agreement was the result of heated discussions and a search for consensus. It was decided to make a hard fork, after which the block size should increase to 2 megabytes. The split was scheduled for mid-November 2017. In fact, Bitcoin would split into two networks with its own coin, rules, signatures and standards.

However, the idea was not destined to come true. Firstly, the negative attitude of the developer community and the launched NO2X campaign did not play into the hands of the “Segregated” protocol. Secondly, BIP91 was implemented earlier and it was successful.

As a result, on November 8, 2017, the complete closure of the project was announced. But there were people who positively evaluated the results for Bitcoin. For example, the head of Blockchain.info, Peter Smith, who initially supported the Segwit2x idea, spoke as follows:

“We’re relieved. The goal of the NYA was to bring the community together and keep the majority of the users on the same chain for at least a little while longer.”

SegWit usage metrics
Image by 123rf

Results for Bitcoin and blockchain

From the moment of implementation of Segregated Witness, a year and a half has passed, but the protocol is not accepted by 70%. Many large services have not yet implemented it into their processes. However, positive changes are already visible, especially for ordinary users. Now the average transaction cost with confirmation within 20 minutes, according to Bitcoin Core Fees, is estimated at 5 satoshi/byte, that is, about $ 0.08 for the entire virtual transaction.

Spam attacks on the Bitcoin network have also stopped, the mempool remains free, and the average block size has exceeded 1 MB. In addition, the activation of SegWit has opened the doors to the implementation of new solutions and prospects for Bitcoin and cryptocurrency in general.

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