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Dogecoin Mining 2021: Everything You Need to Know – Coindesk

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dogecoin moon
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Dogecoin’s incredible start to the year has attracted record numbers of miners to its network. But how easy is it to mine dogecoin and what do you need to get involved?
Dogecoin has come a long way since its modest beginnings as a joke cryptocurrency centered around a viral internet meme of a Shiba Inu “doge.” What was once a parody project purposefully created by software engineers Jackson Palmer and Billy Markus to be “as ridiculous as possible,” is now a top ten crypto asset boasting a $32 billion market capitalization and a global fanbase.
Dogecoin’s spectacular rise over the first half of 2021, driven largely by internet pop culture and relentless promotion from Tesla CEO Elon Musk, has unsurprisingly reignited significant interest in dogecoin mining as mining profitability spikes to a new six-year high.
Even with its recent success, mining dogecoin is still significantly less competitive than mining bitcoin (but still difficult). New blocks are also discovered much faster and coin rewards are substantially higher – 10,000 DOGE per block reward vs 6.25 BTC.
Dogecoin’s blockchain network employs the same system for adding new blocks to its decentralized ledger and reaching agreement among its network participants as bitcoin, litecoin and many other cryptocurrencies.
Known as a “Proof-of-Work” mechanism, this process involves “mining” where individuals or organizations compete for the right to add new blocks containing pending transactions to the blockchain ledger using specialized computer equipment.
More specifically, miners use their machines to try and create a fixed length code known as a “hash” with a value that is equal to or lower than the target value of the new block, known as the “target hash.” Whoever creates the winning code earns the exclusive right to add new transaction data to the next block in the chain and is rewarded with newly minted coins for doing so.
Each hash generated is completely random so it’s simply a process of trial and error until one miner wins.
Here is how dogecoin mining compares to bitcoin and litecoin mining (as of June 2021):
How dogecoin mining statistics compare to bitcoin and litecoin
As a rule, PoW blockchains such as bitcoin and litecoin usually have a predetermined total supply of coins that have to be mined in order for them to be added to the circulating supply (21 million and 84 million, respectively). Think of it as being like actual mining and how precious gems or gold have to be physically mined before they can enter the market.
Unlike a vast majority of cryptocurrencies, however, dogecoin doesn’t have a maximum supply cap. Its circulating supply will continue to increase indefinitely over time as new coins are created through mining.
New blocks are discovered approximately once every minute on the Dogecoin network. For comparison, Bitcoin blocks are discovered approximately once every 10 minutes.
Despite using the same Proof-of-Work system, dogecoin mining operates slightly differently than bitcoin.
Bitcoin, which is the oldest and largest cryptocurrency by market cap, uses a hashing algorithm called SHA-256. This might sound complicated but a hashing algorithm is simply a function that generates a fixed-length code using a certain technique. Think of it as random code generators, where each hashing algorithm creates random codes in a unique way.
Dogecoin and litecoin use a hashing algorithm called Scrypt, which is less complex than SHA-256. This makes mining litecoin and dogecoin much faster and less energy intensive than bitcoin.
The use of a common algorithm enabled Dogecoin and Litecoin mining to be “merged mined”, meaning both coins can be mined simultaneously without impacting operational efficiency. The two share a common algorithm because dogecoin’s design is based on luckycoin, which in turn was derived from litecoin.
In its early years, mining dogecoin was much easier because very few people participated in the network. This meant anyone could mine the coin individually. However, as the popularity of DOGE increased, the mining process became more difficult, prompting miners to come together and form “mining pools.”
A mining pool is a group of individual miners who mine the cryptocurrency as a single entity, or node, by merging their computing power. The rewards are then distributed among pool participants proportionally by the amount of computer power committed by each miner.
Today, there are three main approaches to mining dogecoin:
For anyone looking to mine DOGE for fun or simply to understand the process, it can be done independently using a GPU through a software like EasyMiner, for example. The GPU (graphics processing unit) is a specialized processor that renders all images on a computer’s screen, and many laptops and desktop computers use it to improve image processing.
However, mining alone can be a difficult process and is rarely profitable unless one is willing to shell out significant sums of money on top-spec equipment and electrical bills.
For crypto enthusiasts interested in trying to make a profit from doge mining, joining a mining pool is usually recommended and provides a much better chance of becoming a block validator due to the collective hashing power of the pool. But before jumping into a mining pool, be ready to pay 1%-3% in fees for the privilege to participate and always check in advance how each pool calculates payouts for its members.
Popular dogecoin mining pools in 2021 include:
Dogecoin can also be earned through cloud mining, which is not really mining per se. Cloud mining basically involves renting computing power from a data center and paying a monthly or annual fee based on an agreed-upon contract. The chosen coin is then mined at the center via a mining pool and then shared with you based on how much computing power you pay for.
The main drawback of cloud mining is that most contracts are time-locked, meaning you can lose money if DOGE prices drop below the operational and electrical costs associated with mining it.
Nevertheless, this can also be just as effective as joining a mining pool and does not require the user to own any specialist equipment. Anyone opting for the cloud mining route simply needs a dogecoin wallet.
Popular cloud mining pools that support DOGE include:
For individuals interested in mining dogecoin solo or via a mining pool, there’s a range of equipment needed in order to get started.
There are three types of hardware equipment you can use for DOGE mining:
Once you’ve decided which type of hardware to use, you’ll also need to download software to accompany it. Here are some of the leading software options available at the moment:
A dogecoin wallet is essential for mining and provides a secure place to receive any dogecoin rewards generated from mining. A crypto wallet consists of a public key address for sending and receiving DOGE and a private key to access it. The latter has to be kept secure and not shared with anyone. There are several types of wallets, such as:
It’s worth noting, good access to electricity and an internet connection are essential for mining any cryptocurrency. If you opt for ASIC mining, it’s recommended that rigs be kept in a cool and isolated place to prevent overheating and disturbing neighbors with the noise.
Well, dogecoin mining can still be profitable, especially thanks to the recent price surge. However, don’t expect to become a millionaire. Having powerful hardware and joining a pool will give you the best possible chance of making a profit from doge mining. If you’re interested in finding out how much you could make (approximately) per month, there’s a dogecoin mining calculator you can use.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Anatol Antonovici

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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
@2021 CoinDesk

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EOS Slashes Gains after Rally Fueled by Community's Revolt Against Block.one – Cryptonews

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A quick 3min read about today's crypto news!
EOS investors took a chance to exit after a strong rally yesterday, prompted by the news that the EOS community voted to stop token vesting to Block.one, the developer of EOSIO, an open-sourced blockchain software.
At 08:48 UTC, EOS trades at USD 3.47 and is down almost 6% in a day. However, it’s still up sharply as it traded below USD 3.20 before going almost vertical in the morning on Wednesday (UTC time). The rally helped some investors cash out as the price is still down by 29% in a month, trimming its gains over the past 12 months to 24%.
The EOS Network Foundation (ENF), composed of the dissatisfied members of the EOS community who claim that Block.one is no longer acting in the network’s best interests, has rebelled against the company in a bid to gain the EOS network’s intellectual property.
The foundation has also discussed with EOS block producers, decentralized entities that govern the EOS network, convincing them to halt payments to Block.one.
On December 8, the top 25 EOS block producers approved to halt issuing EOS 67m (USD 232m) that were scheduled to be unlocked and distributed to Block.one over the next six to seven years. 
“Through a super majority consensus, the EOS network has taken its future in its own hands. This begins a new era for EOS and highlights the power of the blockchain to enable a community to stand up against corporate interests that don’t align with theirs,” said Yves La Rose, who now runs the ENF. 
La Rose, formerly the CEO of the internet company EOS Nation, announced that he is the CEO of the ENF back in August, saying that “EOS is in a state akin to exsanguination” and blaming Block.one for it. 
In October, La Rose further continued his opposition against Block.one, highlighting that the network wants to fork out from Block.one. In a medium post, he wrote that “as it stands, EOS has been a failure of monumental proportions on various levels.” 
Later at a virtual event, he declared his stance towards Block.one, saying:
“What we are experiencing is a shift whereby the EOS community is placing itself in a position to be able to move away from Block.one, essentially forking them out. Until this formal shift occurs Block.one will simply continue weighing EOS down.”
Following the criticism by Yves and other members of the EOS community, Block.one revealed that it has inked a deal with Brock Pierce‘s Helios to bring additional growth to EOS and serve its “community through several high ambitions, including creating an EOS Venture Capital fund.”
As part of the deal, Block.one agreed to pay EOS 45m to Helios. However, Block.one only controls EOS 8m as the remaining EOS 37m are still vesting — and given that the community has halted payments to Block.one, the firm might not get those tokens. 
Nevertheless, while the ENF and Block.one have engaged in dialogues, they couldn’t reach a conclusion. According to the ENF, one major problem was that the EOS intellectual property sits on Bullish’s—a yet-to-be-created exchange by Block.one—balance sheet.
This means that Block.one would have to purchase the EOS intellectual property from Bullish. This has set up a barrier particularly that Block.one wouldn’t publicly commit to gaining the intellectual property from the exchange.
Meanwhile, Block.one co-founder Brock Pierce revealed Wednesday that he is seeking to reach a conclusion with Yves and the ENF. 
“I’m working with Yves and the ENF on a mutually beneficial proposal for B1 and Bullish’s consideration that would allow the ENF and the EOS community to take a leadership role in the future of EOSIO’s development and intellectual property,” Pierce said.
______
Learn more: 
EOS Down as Community ‘Forks Out’ Block.One
Block.one to Make Voice NFT-based Amid Non-Fungibles Market Cool Down
Block.one Secures USD 10B To Compete With Coinbase, Binance & Co
Ex-Block.One CTO Larimer Makes a Comeback With Social Network Project

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Miami jury rules in favor of Craig Wright, who claimed to invent bitcoin – CNBC

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Miami jury rules in favor of Craig Wright, who claimed to invent bitcoin  CNBC
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Why China's bitcoin miners are moving to Texas – BBC News

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By Zhaoyin Feng
BBC News, Washington

China's ban on cryptocurrency mining has forced bitcoin entrepreneurs to flee overseas. Many are heading to Texas, which is quickly becoming the next global cryptocurrency capital.
When China announced a crackdown on bitcoin mining and trading in May, Kevin Pan, CEO of Chinese cryptocurrency mining company Poolin, got on a flight the next day to leave the country.
"We decided to move out, once [and] for all. [We'll] never come back again," Mr Pan told the BBC.
Headquartered in Hong Kong, Poolin is the second largest bitcoin mining network in the world, with most of its operations in mainland China. The country was home to around 70% of global bitcoin mining power, until the clampdown sent the price of bitcoin into a tailspin and caught miners off guard.
Now China's "bitcoin refugees" are urgently scrambling to find a new home, whether in neighbouring Kazakhstan, Russia or North America, because for bitcoin miners, time is literally money.
"We had to find a new location for the [bitcoin mining] machines," Poolin's vice-president Alejandro De La Torres said. "Because every minute that the machine is not on, it's not making money."
In what some call the "Great Mining Migration," the Poolin executives are among the many bitcoin miners who have recently landed in a place reputed as part of America's wild wild west: Austin, Texas.
Bitcoins are a digital currency with no physical form – they exist and are exchanged only online.
They are created when a computer 'mines' the money by solving a complex set of maths problems and that is how bitcoin 'miners' who run the computers earn the currency.
This takes a lot of energy.
As a new form of money that transcends national boundaries, there is also much confusion and potential to run afoul of government rules – so two things bitcoin entrepreneurs value are cheap electricity and a relaxed regulatory environment.
The Lone Star State fits the bill to a tee.
For Mr Pan, Texas felt like home almost instantly. Days after his arrival, he was gifted an AR-15 rifle, which he says he may use to "hunt hogs from a helicopter" one day.
While the shooting ranges and Texas barbeque provide for welcome entertainment, legal protection for business is the major attraction for the bitcoin miners. "What happened to us in China won't happen in the US," Mr De La Torre says.
Governor of Texas Greg Abbott has been a vocal supporter for cryptocurrency. "It's happening! Texas will be the crypto leader," he tweeted in June. In the same month, the Lone Star State became the second US state after Wyoming to recognise blockchain and cryptocurrency in its commercial law, paving the way for crypto businesses to operate in the state.
Many Chinese bitcoin companies have looked to Texas for stability and opportunity. Shenzhen-based firm BIT Mining has planned to invest $26 million to build a data centre in the state, while Beijing-based Bitmain is expanding its facility in Rockdale, Texas. This small town with around 5,600 residents once housed one of the world's largest aluminium plants, and now it's emerging as the next global hub for bitcoin mining.
There might be another underlying connection between the industry and the state, as De La Torre says that bitcoiners and Texans share the same values. "Texans take their freedom and rights very seriously, and so do we bitcoiners."
Experts believe China's bitcoin crackdown was motivated by having greater control over the financial markets, and it may become a boon for America.
"The migration benefits the US in terms of talent acquisition and furthering the innovation ecosystem," says Kevin Desouza, a business professor at the Queensland University of Technology who has done research on China's digital currency policy. In return, the bitcoin miners get access to a thriving and innovative community, as well as more diverse sources of capital, according to Prof Desouza.
Other than a stable regulatory environment, the energy-hungry industry is hunting for cheap electricity in Texas.
Texas has some of the cheapest energy prices in the world, due to its deregulated power grid. Consumers enjoy more choices of electricity providers, which encourage providers to lower prices to stay competitive. During peaks of electricity demand, bitcoin farms can even sell unused power back to the grid.
Although El Salvador is set to become the first country to adopt bitcoin as a national currency, bitcoin miners prefer the US because of its well-developed electrical infrastructure, says Mr De La Torre.
But some analysts warn that the "Great Mining Migration" may lead to serious repercussions, as cities and towns struggle to meet the huge energy appetite.
In February, blackouts following a deadly snowstorm left millions of homes and businesses in Texas without power for days. More than 200 people died. During the power outage, bitcoin farms were compensated to stay offline.
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The increased scrutiny of Chinese companies in America may also lead to more attention on these mining newcomers. Texas recently passed a law that prevents "hostile foreign actors" from accessing critical infrastructure, including its power grid. The new law was reportedly prompted by a Chinese billionaire's plan to build a wind farm in southwest Texas. Critics allege that the project could be used to hack into the Texas energy grid and to gather intelligence from a nearby US military base.
Prof Desouza says that while access to electricity grids is unlikely to be an issue for bitcoin miners in the short term, political risk will continue to evolve.
The bitcoin miners do miss something in China – cheap labour cost and speedy construction.
According to Mr Pan, while a new bitcoin farm takes up to five months to build in China, it could take as long as 18 months in Texas. Global shipping prices have also skyrocketed during the pandemic, making it significantly more expensive to ship mining machines from China to the US.
Despite the costly and time-consuming efforts, Mr Pan says his company is committed to settle in Texas, "It's a free land, and a lot of bitcoiners are here," he says, "so we feel: 'whoa, family reunion.'"
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