What Is Dogecoin And How Does It Work?

What Is Dogecoin And How Does It Work?

In addition to Bitcoin, one of the crypto assets that has recently managed to steal the attention of many is Dogecoin, or familiarly also called Doge. Doge came into the spotlight after the CEO of electric car company Tesla, Elon Musk, gave his support via a tweet on Twitter. Since then, Doge has become one of the coin alternatives that you can choose to start investing in to get a big profit. Not only that, mining Doge may be the perfect starting choice for you to do.

So, what is Dogecoin mining? And, what is the difference between Dogecoin mining and other crypto assets? Find all the answers in the following review.

A Brief History of Dogecoin

In 2013, an Australian citizen named Jackson Palmer and an American citizen named Billy Markus became friends because the two both liked crypto. They decided to use a popular meme as their mascot for a Shiba Inu dog.

Dogecoin was launched on December 6, 2013. It has since become popular due to its fun and fun nature. Just like the mascot!

Dogecoin has become famous for its use in charitable acts and online tipping. In 2014, Dogecoin worth US$50,000 or the equivalent of Rp713.3 million was donated to the Jamaican Bobsled Team so they could go to the Olympics. Dogecoin has also been used to build wells in Kenya.

Dogecoin crypto assets have the 27th largest market capitalization of all existing crypto assets. Dogecoin is a popular altcoin.

What is Dogecoin Mining?

Mining Doge is a rewarding process with the new Dogecoin, to check transactions on the Dogecoin blockchain. Mining or commonly interpreted mining, has a way of working like a lottery. To be able to do mining, you have to do some confirmation and check the transaction.

Generally, the mining process is a mathematical problem solving process, so that later it can attach newly confirmed transaction blocks to the rest of the blockchain. Most crypto mining happens this way. However, mining Doge has some differences in some areas.

These areas include several things:

1.algorithm. Each crypto asset has a set of rules for mining new currencies. These rules are called mining or hashing algorithms.

2.Block Time. This is the average length of time it takes for a new transaction block to be checked and added to the blockchain.

3.difficulty. These are the numbers that show how difficult it is to mine each new currency block. You can use difficulty numbers to find out how likely you are to win the mining lottery. Mining difficulties can go up or down depending on how many miners there are. Difficulty is also adapted to the coin protocol to ensure block time remains the same.

4.gift. This is the number of new crypto assets given to miners from each new block.

How to Mine Dogecoin

Are you interested in mining Dogecoin but confused how to do it? Here's the full guide.

If you want to start mining Dogecoin, the first way you need to do this is to download the Dogecoin core from the official Dogecoin website. In general, this wallet has the same features as other crypto asset wallets.

Once the installation is complete, you can then go to the Settings and Encrypt Wallet menus to guard against attacks or thefts. You need to know that, the synchronization process with Dogecoin network also takes a long time. Where later the wallet core will download all the existing blocks, directly to your CPU.

If your computer is shutdownd, synchronization will continue until it is complete.

Join the Mining Pool Doge

Because solo mining is not very profitable and has high difficulties by some parties, the alternative is to join the Dogecoin mining pool. Mining in groups offers more convenience, thus reducing difficulties during the mining process.

One of Dogecoin's mining pools is Aikapool. You can take advantage of this pool for Doge mining without having to download cores that require large storage space.

If you have, you can directly register to the pool, then how to mine Dogecoin by downloading cpu mining software multi version 1.3.1 windows 64 bit on Github.

When you have successfully downloaded, extract it in one folder and make sure antivirus is set exception for this folder. Next, you can open the folder and edit the batch file with notepad, edit the code in it with the following settings:

cpuminer-gw64-corei7.exe -a x11 -o stratum.aikapool.com:7915 -u UserName.WorkerName -p WorkerPassword pause.

You need to make sure, not to replace every part of the file name that is in the folder. Then, use the cpuminer-gw64-corei7 code.exe according to the i7 processor installed in the CPU.

If you are using a dual care CPU, replace the code with cpuminer-gw64-core2.exe and can be used on a laptop. Finally, to start mining, please click the batch file you have changed the code.

Things to Note

Once you understand how to mine Dogecoin, it's time for you to get ready to jump right in to do so. However, before doing so, there are a few things to note, including:

1. PC with Windows, OS X or Linux operating system.

2. Fast and stable internet connection.

3. You also need a place to store your Dogecoin. It is not recommended to choose an online wallet. We recommend choosing a software or hardware wallet such as Ledger Nano S, Trezor Model T and Coinbase. The last option is a software wallet, while the first two are hardware wallets.

4. Powerful hardware.

Hardware for Mining Doge

In order for the dogecoin mining methods described above to run at their maximum, you also need to set up some hardware, including:

1. PC CPU. The CPU in your PC may be powerful enough to mine Dogecoin. However, that is not recommended. Because mining can cause less powerful computers to overheat which can later cause damage.

2. Gpu. GpUs (or graphics cards) are used to enhance computer graphics but can also be used to mine Dogecoin. There are many GPUs to choose from: SAPPHIRE Pulse Radeon RX 580 (426.98 US dollars), Nvidia GeForce GTX (579.99 US dollars), and ASUS RX Vega 64 (944.90 US dollars).

3. A Scrypt ASIC Miner. It's hardware designed to do just one job. ASIC Scrypt miners are programmed to mine scrypt-based currencies such as Litecoin and Dogecoin. Miner ASIC is very strong. The following are a selection of devices, namely Terminator Innosilicon A2 (760 US dollars), Bitmain Antminer L3 (1,649 US dollars), and Miner Scrypt BW L21 (7,700 US dollars).

Comparison of Mining Doge with Other Crypto Assets

Comparison of mining crypto assets Doge and Bitcoin, can be seen from different hashing algorithms.

If Bitcoin uses SHA-256 to run the mining process, Dogecoin uses Scrypt. The Scrypt algorithm requires low electrical power and has a high computing level when compared to SHA-256. With the algorithm used by Doge, it makes it easy for miners who do not have a sophisticated computer.

In addition, the rewards given from Dogecoin mining are much greater than other Bitcoin and Litecoin. Mining Dogecoin is also much faster than mining Litecoin or Bitcoin.

With the convenience of Dogecoin, it opens up a great opportunity for miners to get a great reward from Doge mining.