Dogecoin block rewards have long been viewed as a bonus for merge mining on Litecoin. As DOGE’s current performance overshadows the LTC, this is occasionally not the case.
The knowledge of Bitinfocharts shows that the mining income of the meme coin per gigahash second (GH / s) of computing energy will be 25 USD in the future, which has increased tenfold since the beginning of April and corresponds to the jump in value of DOGE final month. During the same period, mining revenues of 1 GH / s at LTC increased from $ 5 to around $ 8 at this point in time.
Dogecoin and Litecoin blockchains are mainly based on the proof-of-work consensus mechanism using the Scrypt algorithm.
Because of this, an application-specific built-in circuit (ASIC) miner designed to mine LTC can also mine DOGE with the same hash load at the same time if the mining pools it connects are in support of LTC and DOGE use the merge wizard mining. The hash fee for each blockchains is currently around 350 terahashes per second.
Historical knowledge shows that all of the computational power securing the Dogecoin community goes hand in hand with that of Litecoin due to the massive LTC mining pools like F2Pool, Litecoinpool.org, Viabtc and Antpool that support merge mining . With DOGE’s value being well below $ 0.005 since early 2018 and being sold, it was viewed as a by-product of LTC mining.
In general, the current DOGE and LTC value rallies have additionally stimulated the markets for Litecoin ASIC miners. Last week, Chinese resellers began actively bidding, again asking WeChat about previous LTC mining machines, just like the AntMiner L3 +, which launched in July 2017.
Those earlier fashions remained largely unprofitable after Litecoin halved in August 2019 when LTC modified fingers below $ 100 and paid off marginally last December when LTC jumped above $ 120 again.
Currently, the meme coin is the fourth largest cryptocurrency by market capitalization at $ 78 billion after BTC, ETH, and BNB, while LTC is the tenth largest at $ 22 billion according to CoinGecko.