Dogecoin’s block rewards have lengthy been thought to be a bonus of merge mining on Litecoin. However with DOGE’s current value rally overshadowing LTC, that will not be the case.
Information from Bitinfocharts reveals that the meme-coin’s mining revenue per one gigahashes second (GH/s) of computing energy in in the future is at $25, which has ten-folded since early April and is according to DOGE’s value leap over the previous month. Throughout the identical interval, the mining revenue of one GH/s on LTC has solely grown from $5 to proper now round $8.
The blockchains of each Dogecoin and Litecoin run on the proof-of-work consensus mechanism utilizing the Scrypt algorithm.
Due to this fact, an utility particular built-in circuit (ASIC) miner that’s designed to mine LTC can even mine DOGE concurrently with the identical hash fee if the mining swimming pools they connect with help LTC and DOGE merge mining. Presently, the hash fee on each blockchains are round 350 terahashes per second.
Certainly, historic information reveals the whole computing energy securing the Dogecoin community goes hand-in-hand with that on Litecoin due to main LTC mining swimming pools resembling F2Pool, Litecoinpool.org, Viabtc and Antpool all supporting merge mining. However for the reason that value of DOGE had largely been buying and selling effectively beneath $0.005 since early 2018, it was thought to be arguably an LTC mining byproduct.
General, the current value rallies of each DOGE and LTC have additionally revived the markets for Litecoin ASIC miners. Over the previous week, Chinese language mining resellers have began actively posting bids and asks on WeChat once more for outdated LTC mining gear such because the AntMiner L3+, which was launched in July 2017.
These outdated fashions have largely stayed unprofitable after Litecoin’s previous halving in August 2019 when LTC was altering palms beneath $100 and haven’t develop into marginally worthwhile till final December when LTC jumped again above $120.
As of writing, the meme coin is the fourth largest cryptocurrency by market capitalization with $78 billion after BTC, ETH and BNB whereas LTC is the tenth largest with $22 billion, in accordance with CoinGecko.