In July 2014, at block height 317,337, merged mining (AuxPoW) between $DOGE and $LTC took effect at this height. Both chains use Scrypt, so miners hash once and can submit the same result to both.
Structurally, the trade-off is borrowed hash power: $DOGE doesn’t need to build its own mining pool of comparable size; hash power from $LTC also happens to mine blocks here. The cost is that the security budgets of both chains are now tied together. If something goes wrong on the $LTC side, it’s hard to say this chain is completely unaffected. $BTC uses SHA-256 and has no connection to this mechanism.
#Dogecoin #Blockchain
The figures come from a merged-mining case study by Binance Research. Crypto asset prices are volatile; DYOR.
Structurally, the trade-off is borrowed hash power: $DOGE doesn’t need to build its own mining pool of comparable size; hash power from $LTC also happens to mine blocks here. The cost is that the security budgets of both chains are now tied together. If something goes wrong on the $LTC side, it’s hard to say this chain is completely unaffected. $BTC uses SHA-256 and has no connection to this mechanism.
#Dogecoin #Blockchain
The figures come from a merged-mining case study by Binance Research. Crypto asset prices are volatile; DYOR.