Unlike other cryptocurrencies created for decentralised currency purposes, Dogecoin was created as a joke. It grabbed crypto enthusiasts' attention in less time, sharply increasing its market valuation in 2021.
It is one of the cryptocurrencies that can be mined easily. You do not need to have a large pool of resources for mining. For solving the hash code and mathematical puzzle to create one block, you can get 10,000 Dogecoin in return.
Here is all you must know about the Dogecoin mining process and the most efficient pool options for this minting process.
What is Dogecoin mining?
Dogecoin mining refers to the process of earning this cryptocurrency. Miners solve intricate cryptographic puzzles using large computational powers to bundle several transactions into one block. It helps the blockchain network to run smoothly.
The miners get new Dogecoin as a reward for the toil and energy used in this process. Nevertheless, they can also get Dogecoin by creating other cryptocurrencies built on the Scrypt algorithm. One needs to use ASICs (Application-Specific Integrated Circuits) computers to mine efficiently and profitably. It helps miners to run the Scrypt algorithm quite easily.
As Dogecoin is a decentralised cryptocurrency, miners must use the proof-of-work (POW) mining mechanism. Through this POW process, miners validate the transactions by collecting consensus.
How does pool mining of Dogecoin work?
One of the special features of Dogecoin mining is that you get both solo and pool mining options. In solo mining, you use your resources and energy to solve the hash puzzles. It may consume a lot of time and energy, which you must bear alone.
However, in pool mining, several miners join together and share their resources to solve the puzzles for creating blocks in the blockchain network of Dogecoin. All the miners share their hash rates and computational efficiencies. It makes the process of creating new blocks much easier. As the risk and challenges are shared with all enthusiasts in the pool, it can be the easiest option even for the new enthusiast to mine Dogecoin.
You may be curious about where to find these pool miners. Several platforms for mining cryptocurrency in pools enable users to share their hash rates and earnings easily.
What is a pool mining platform?
Several users join and share their computational power to solve the cryptocurrency puzzle in a mining pool platform. These platforms share all their earnings with the users according to the proportion of the hash rate they share. However, it charges a certain fee from the miners.
A mining pool for Dogecoin allows you to solve the hash problem pertaining to the blockchain of Dogecoin or any other cryptocurrency that functions on a 'proof-of-work' (POW) mechanism. You get only Dogecoin as a reward.
Best pool options for Dogecoin mining
Pool mining can be the best alternative for new enthusiasts with less experience and resources. Following are some major pool mining options for earning Dogecoin:
Aikapool
Aikapool is one of the leading mining pools with a share of 7% in hash rate contribution. However, miners must pay a 1% charge using its platform. With the proportional reward system, they get a share in the earned coin considering the hash rate they generate in creating a block in that network.
The platform also maintains complete transparency by displaying the members engaged in the pool, total earnings and the hash rate workers have shared separately.
Litecoinpool
Litecoinpool is also a popular Dogecoin mining pool option. This platform can be preferred for earning cryptocurrency due to its fair reward system, pay-per-share (PPS). It allows all miners to get a share of the earned coins till their resources remain working to contribute to the hash rate, irrespective of whether they create any block.
It shares information regarding shared hash rates, total shares, coins earned every day, etc., to maintain transparency. Another significant advantage of this platform is that you do not have to pay any charge. Litecoinpool gives the earnings in Litecoin (LTC), no matter which cryptocurrency you mine in the pool.
Zpool
Zpool is also one of the largest platforms for mining Dogecoin in a pool. It contributes 2% of the world's total hash rate share. It also comes with a proportional payment system and rewards considering the amount of hash rate they share for finding every block. One has to pay a 0.5% charge to use this platform.
However, this platform does not let you choose a cryptocurrency you need to mine. The platform's algorithm will check your hash power and direct you to mine a profitable coin according to your mining system's problem-solving efficiency. The Zpool lets you mine a proof-of-work coin and get paid in Dogecoin.
1CoinPool
1CoinPool lets users mine Dogecoin and Litecoin. The platform provides firewall protection, DDoS (Distributed Denial of Service), attack prevention, etc., to ensure safety and security in mining coins. The platform also lets you start mining even with less bandwidth and computational power, making the process more accessible for new enthusiasts.
It takes a minimum charge to let you mine more profitably. You do not have to pay a fee for withdrawing the earned coins from your wallet. The pay-out system of 1CoinPool is also proportional.
Multipool
You can mine multiple cryptocurrencies such as Dogecoin, Verge and Litecoin. The platform pays only in Dogecoin, no matter which coin you mine for in the pool. You have to pay a charge of 0.25% for mining through Multipool.
One of the unique features of Multipool is that you can choose merged mining. This means you can mine more than one cryptocurrency in the platform without reducing your hash efficiency. For example, you can mine both Litecoin and Dogecoin simultaneously.
Bottom line
You can increase your Dogecoin even without buying it by mining it. However, for mining, you have to solve hashes to create new blocks in the network. It may be challenging for you to solve complex hash problems alone. Mining pools make block creation seamless as several other enthusiasts take part and share their hash rates. This way, you can easily mine Dogecoin using your limited resources.
