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04-18-2021, 03:19 AM
By Jason Murdock
The cryptocurrency Dogecoin hit an all-time price high this week, surpassing 10 cents and sending its Reddit community into a meme frenzy. But some people don't want to simply buy the digital tokens, they want to create them.
The process is known as mining, and it's possible to do with some computer hardware and software. Unlike Bitcoin, which has a hard cap of 21 million tokens available to be mined, there is no upper cap on the potential supply of the dogecoin currency.
There are currently more than 129 billion dogecoins in public circulation, according to tracking data published by CoinMarketCap and CoinDesk.
Mining DOGE may not require as much computing power as Bitcoin, but it's still not a process for beginners, and the rewards are essentially a competitive lottery.
Broadly, crypto mining works like this: all transactions of tokens are stored on a ledger called a "blockchain," which is distributed across a network of computers called nodes. The nodes assign new transactions into groups, which are known as blocks.
The blocks are checked by all nodes before being successfully added to the ledger. It is the confirmation process that needs a lot of computer power. The miners—the people behind the nodes—are rewarded with new cryptocurrency in return for the work.
Dogecoin's blockchain, called Dogechain, is publicly online and shows transactions in almost real-time. The process is often referred to as a lottery because only one node at a time will win a reward—the computer that can confirm a new block fastest.
The block reward when mining dogecoin is 10,000 dogecoin. Both DOGE and Litecoin merged mining in 2014 and are based on an algorithm known as Scrypt. In comparison, Bitcoin uses the SHA-256 algorithm, which needs more computer power to mine.
Source:
The cryptocurrency Dogecoin hit an all-time price high this week, surpassing 10 cents and sending its Reddit community into a meme frenzy. But some people don't want to simply buy the digital tokens, they want to create them.
The process is known as mining, and it's possible to do with some computer hardware and software. Unlike Bitcoin, which has a hard cap of 21 million tokens available to be mined, there is no upper cap on the potential supply of the dogecoin currency.
There are currently more than 129 billion dogecoins in public circulation, according to tracking data published by CoinMarketCap and CoinDesk.
Mining DOGE may not require as much computing power as Bitcoin, but it's still not a process for beginners, and the rewards are essentially a competitive lottery.
Broadly, crypto mining works like this: all transactions of tokens are stored on a ledger called a "blockchain," which is distributed across a network of computers called nodes. The nodes assign new transactions into groups, which are known as blocks.
The blocks are checked by all nodes before being successfully added to the ledger. It is the confirmation process that needs a lot of computer power. The miners—the people behind the nodes—are rewarded with new cryptocurrency in return for the work.
Dogecoin's blockchain, called Dogechain, is publicly online and shows transactions in almost real-time. The process is often referred to as a lottery because only one node at a time will win a reward—the computer that can confirm a new block fastest.
The block reward when mining dogecoin is 10,000 dogecoin. Both DOGE and Litecoin merged mining in 2014 and are based on an algorithm known as Scrypt. In comparison, Bitcoin uses the SHA-256 algorithm, which needs more computer power to mine.
Source:
Code:
https://www.newsweek.com/dogecoin-how-mine-cryptocurrency-explained-129-billion-tokens-circulation-1583515