Even those that don’t follow the cryptocurrency space closely are familiar with Dogecoin, at least as a meme. Besides being a legitimate cryptocurrency, Dogecoin has thousands of fanatic followers worldwide and is a mainstay at the top of the market.
What Is Dogecoin?
Dogecoin is a cryptocurrency that made its first appearance in 2013. The project with a Shiba Inu dog as its logo has garnered a lot of attention on social media, with Elon Musk tweeting about the coin from time to time. Blockchain proponents Jackson Palmer and Billy Marcus are the founders of Dogecoin and are currently in charge of a top market cap crypto.
How Does Dogecoin Work?
The dog-themed coin is built on the Litecoin blockchain and therefore has commonalities with the predecessor, as Litecoin was built two years before Doge. The most important common point to note is that both cryptocurrencies operate on the proof-of-work model.
This means that there is a network of computers that record transactions on a ledger. The creation and transfer of coins are all recorded on the blockchain, where they are visible to all. This offers transparency to all users and guarantees the integrity of the network.
The ledger consists of blocks that are created, or mined, approximately every minute. All transactions since the coin’s inception are recorded on the ledger. Miner’s collect rewards for running the network and for creating new blocks that perpetuate the network.
How to Mine Dogecoin With Ease
Since mining involves a computer solving complex math problems, to mine Dogecoin, you will need the proper equipment. Start with a Windows, Mac OS or Linux system on which you can install the Dogecoin mining software. ASIC miners have become the industry standard as they can complete the greatest number of calculations in the smallest amount of time.
Connect your ASIC to a power supply unit that is plugged into a power source. Ideally, you will want to have access to the cheapest electricity you can find. To make it worth your while, your energy bill should be smaller than the value of Dogecoin you are mining.
After connecting an Ethernet cable to your ASIC, use an IP scanner to find your machine on your network. Once the scanning is done, double click on your rig in the list and type in the word “Root” as username and password. This will log you into the main antminer page.
You will now be given the choice of joining a mining pool. Mining pools denote groups of miners that pool their resources over the network. By heading over to the Miner Configuration tab, you can enter the addresses of the selected pools. When done, you will be ready to start mining.
Apart from using an ASIC, there are other ways to mine Dogecoin, including using your laptop or mobile. However, you should keep in mind that these are not efficient enough to turn a profit with the current computational power of such devices as well as the high costs of electricity.
If you’re interested in figuring out more on how to mine dogecoin, learn from SoFi, the experts on all things finance and crypto.
Mining Dogecoin With Ease
Depending on your disposable income, mining Dogecoin can be easy and profitable. Buying an ASIC and participating in a mining pool can give you the economies of scale to achieve your goal.
