The Dogecoin, also known as meme crypto coin is a digital cryptocurrency whose brand was influenced by a meme. Since the inception of Dogecoin in 2013, the coin has been gradually gaining profit. By the year 2015, the meme crypto coin had 100 billion coins in circulations which created a whopping market value of the Dogecoin $64 billion USD by 2018. The Dogecoin is preferred by investors and miners alike because of the technological benefits that Dogecoin offers to its users.
The Dogecoin is governed by the same technology that covers the number one crypto coin, the Bitcoin. Even though the Blockchain influences both Bitcoin and Dogecoin, the outcomes of both are different because of the technical limitations. Where the Block time of Bitcoin is 10 minutes, the block time of Dogecoin is 1 minute that makes Dogecoin much faster than Bitcoin. The experts at Bitcoin are in a constant attempt to make the system of Bitcoin better but currently, there are many crypto coins such as Dogecoin that is trending while Bitcoin makes mends itself.
Apart from the investors, the miners are also getting interested in the coin. The technology enables the miners to mine Dogecoin with ease. There are many beginners that are looking to mine Dogecoin but due to lack of knowledge, they are unable to mine. Here is a guidebook for such beginners who are looking to mine Dogecoin.
To understand mining, you have to understand how cryptocurrencies operate. The Dogecoin especially is a decentralized peer-to-peer digital currency which allows transaction from one individual to another without any help or authority of bank. This crypto coin transaction recorded in a digital ledger that is commonly known as Blockchain. The Blockchain is a combination of thousands of computers in the network where each computer is called a node. And when any new transaction occurs the transaction is added to every node and hence the Blockchain.
The transactions are checked by all the nodes before confirming any transaction and if they don’t use Blockchain then the users will pretend that they have a currency which they actually don’t have. After all the nodes have confirmed the transaction, then only the transaction can be fully secured. The confirmation process requires a lot of computer power and electricity which is quite expensive. Therefore, the cryptocurrencies offer rewards to the nodes by giving them crypto coins. Hence this process is called mining.
This is the general idea of mining but each cryptocurrency have different Blockchain and so the mining process and the reward value are different for each crypto coin. So, the question remains how to mine Dogecoin? And what are the requirements for Dogecoin mining?
The Dogecoin can be mined with the two methods where the first is sole mining and second is pool mining. The sole mining includes only one miner, where pool miners include multiple miners. When you mine a block, you alone will receive the complete reward. When you mine in a pool, the reward gets distributed amongst other miners. Hence you only receive a small portion of the reward if you pool mine Dogecoin. In pool mining, you can only mine if you pay certain fees where, as a sole miner you can mine without paying any prior fees. The Dogecoin mining can be a hard process and therefore it is recommended by experts to mine in a pool if you are a beginner.
For mining Dogecoin, you will require a PC that either supports Windows, OS X, or Linux operating system, to have an interface with the Blockchain. You will also require an internet connection so that your node (the computer) can stay connected with the Blockchain. The computer will also require extra power to mine Dogecoin because the process can overheat your system if you don’t opt for extra processing power. You can use a GPU or a graphics card to give your computer extra power. There are many GPUs to choose from such as SAPPHIRE Pulse Radeon RX 580, ASUS RX Vega 64, Nvidia GeForce GTX , etc. A Scrypt ASCI miner will make the work easier because it is specially designed to mine Scrypt based crypto coins such as Litecoin and Dogecoin. The Dogecoin cannot be stored anywhere, so you can go to the official website and download a wallet or you can use a USB flash drive specially designed to store cryptocurrencies. You can also opt for cloud storage that is also specially designed to store Scrypt based crypto coins at a nominal charge.
Here are the requirements and steps that can help you mine for Dogecoin. You can also buy Dogecoin with USD if you need capital for the star-up in the pool mining. The Dogecoin is gaining prominence and the market capital is increasing with its popularity. Thus Dogecoin has the potential of becoming tomorrow’s Bitcoin, and it is wise to invest in a bright future.