Dogecoin is a popular meme coin that was started in 2013 as a joke. It may not carry Bitcoin’s high valuation, but it is almost as popular. This can be attributed for the most part to the influence of tech billionaire and Tesla CEO Elon Musk. Since the beginning of 2021, he has been at the forefront of promoting this meme coin. In May, he took to Twitter, asking his followers if Tesla should accept DOGE payments, which, as you can imagine, did not hurt the coin’s popularity.
What is DOGE?
As aforementioned, Dogecoin was launched as a joke. It was based on a Shiba dog, a small Japanese hound that was at the center of a popular meme in 2013. Pretty soon, a few internet users started using these coins to tip their fellow users online. At the time of writing, the coin has a market capitalization of $31.75 billion, placing it 10th in the top crypto coins by market cap. This means it is slowly gaining popularity among traders and miners alike.
How is DOGE mined?
Dogecoin uses a proof-of-work (PoW) system for consensus, which is the same system used by Bitcoin. This means that anyone with the computational power to mine Bitcoin can also mine DOGE. However, DOGE mining uses ASIC miners that are different from those employed for BTC mining.
Dogecoin runs on the Scrypt algorithm, the same one on which Litecoin runs. In fact, mining DOGE is similar to mining Litecoin. Although the same infrastructure can be used to mine the two coins, Litecoin is hugely favored by most miners since it promises more profits than DOGE mining.
Alternatively, a miner could choose to mine DOGE and Litecoin simultaneously. This is known as merge mining. It allows one to mine Litecoin and get DOGE as a byproduct without compromising on their hash rate. Owing to the increased complexity of mining DOGE, most miners opt to pool their resources rather than mining independently.
DOGE mining pools
A mining pool is a group of miners who join their resources in their efforts to mine a crypto coin. For DOGE, miners can join a pool that enables them to increase their computational power. With this improved hash rate, they can solve the computational equation faster and enter new blocks earlier than other miners. In return, they share their rewards among pool members using some predetermined criteria.
Before joining a pool, however, you should keep an eye out for the pool’s safety level, how they share rewards among members, any fees they charge, the location of their servers, and the total hashing power the pool commands. In addition, you should check whether the pool mines any other coins other than DOGE. A pool that mines multiple coins allows you to increase your profits by switching coins when your original coin proves to be less profitable. This is important as ASIC mining does not come cheap.
Top ranking DOGE mining pools
As its name suggests, this pool allows mining of several cryptocurrencies; among them is Dogecoin. Further, it allows the mining of not only coins that run on the Scrypt algorithm but also the SHA-256 algorithm on which Bitcoin runs and the X11 algorithm on which Dash runs. In total, you can mine 29 crypto coins on Multipool.
This pool pays its users in DOGE or any other crypto coin. There are no withdrawal fees as long as the withdrawal amount is above the minimum and the user chooses the Autopay functionality. It also supports merged mining, which allows you to mine LTC and DOGE simultaneously.
Established in 2013, Prohashing allows the mining of several cryptocurrencies. The most outstanding feature is you can mine DOGE on it but be paid in any one of the crypto coins they have listed as their payout options.
This pool uses a pay-per-share system to distribute rewards among its members. This means that a member is paid by the proportion of hashing power they contribute to the pool. In addition, all miners pay a flat fee of 4.99% to save their spot on the pool. With its transparency and ease of use, Prohashing is easily one of the best pools in the market.
Litecoinpool also uses the transparent pay-per-share reward system. It is decentralized, with no physical servers or governing authority to control the mined coins. The pool charges no fees, and withdrawal is not limited. However, miners can only receive payments through Litecoin. The makers of this pool have placed miner security at the forefront. In fact, they boast of being the first pool to protect its members using a TLS-encrypted stratum connection.
Aikapool is known for being user-friendly, which makes it suitable for even beginner miners. It supports DOGE mining and 14 other coins based on the Scrypt algorithm. It also offers ten other algorithms you can switch to if you so wish. Its fees are charged at 1%, while rewards are doled out using the PROP system. In this system, rewards are calculated in rounds, which simply means the time between one block entered by the pool to the next. Your share is dependent on the proportion of shares you submit as compared to the total shares submitted per round.
This pool operates both Litecoin and DOGE mining pools. The pool mines at least three blocks per week, and they utilize the PROP payout system. This means miners are paid proportional to the work they do during a round. Rewards are sent automatically to a miner’s wallet, which is very convenient.
Dogecoin is a cryptocurrency that was started as a joke but has slowly gained popularity over the years. At the time of writing, the coin was ranked 10th in market capitalization. It runs on the Scrypt algorithm, the same as Litecoin. This means the mining process is similar for both coins, and most miners opt to mine LTC for it holds a higher value. However, one can merge mine, where they mine LTC, and get DOGE as a byproduct. For best results, DOGE miners bring their resources together in mining pools and distribute any rewards obtained through a predetermined sharing system.