Merge mining is a relatively nascent model in the realm of cryptocurrencies that have already taken the world by storm. Those who are keen on cryptocurrencies might have already heard this term. But what is it all about?
Let us find out more below.
The concept of came to light at the dawn of 2014. It is defined as the activity that grants mining of two or more cryptocurrencies at the exact moment without disrupting the overall mining process. To connect, one has to haul the blocks of both parent and child chains. The parent chain reserves a set of its transaction affairs coupled with the hash of a recent block designed in the child chain. The child chain holds blocks with transactions corresponding to its blockchain alone.
How exactly does merge mining works?
Auxiliary proof of work, otherwise called AuxPOW, is the reason for the very existence of merged mining. AuxPOW allows the merging of two different blockchains, which results in a relationship between them by accepting and understanding how others work and thereby accepting it as their own and accepting AuxPOW blocks. Blockchains hoard information as blocks which is impossible to hack, cheat or break the system. These blocks are connected via cryptography. The highlight of merge mining is that every time a miner does a hash, it hands out the entire hash rate of the currencies, and that is the case; it is well secured.
A miner or (when it comes to pooled mining) comes up with new crypto coins by solving tortuous mathematical problems. The mining speed is represented as the hash rate, which measures computational power per second. A miner builds blocks in favor of both the hash chains to such a degree that the same hash calculations seal both the blocks. To carry out merged mining, every cryptocurrency involved uses the same algorithm. The parent chain does not go through any moderations; hence it is hardly affected, but the auxiliary blockchain must be organized to receive and accept the work of the parent chain efficiently. Another element of merged mining is Hard fork (also called hard fork) which is an episode where the blockchain splits into two different blockchains that run side by side to each other. These separate chains have different parameters from a standard former chain. Therefore, adding or removing a blockchain requires a hard fork.
If a miner puzzles out a block, the block is rebuilt with wrapped up proof of work and submitted to an errorless blockchain. In recent years’ an upper hand in merged mining has been observed.
Advantages of merge mining
- Double reward – In merged mining, as you are in unison searching for proof of work on the parent and auxiliary blockchain when a block hash on the parent chain is encountered, you can secure two rewards.
- Escalated security for auxiliary blockchains
- The handiness of accessible capacity
- Child network protection
- No need to shift between blockchains
- Increased net profit and staging of the equipment
The merged mining activity or combined mining bring about sound blocks for both primary and auxiliary networks. In the latter situation, the Auxiliary proof of work (AuxPOW) protocol attaches factual information essential for the proper functioning of the protocol and the auxiliary network. The block’s data within the bounds of merged mining, primarily the block that enters the auxiliary network, are identical, the data that carry a block inside the leading network.
What is a merged mining pool?
The merged mining or combined mining pool is fabricated by merging the assets of a large number of people. A merged mining pool, otherwise called mmpool, is a combination of networks that encourages faster mining and comes up with added resources. Joining a pool is a crucial step of mining though some miners prefer solitary mining. A mining pool is a united group of cryptocurrencies that enables miners to use their resources to strengthen up their possibility of finding a block and solving it, and this could result in recurring mining reward payoff. Before choosing a merged mining pool, one must confirm that your is unanimous with the pool selected. The rewards are claimed as per the agreed contract while joining the pool.