Merged mining
Also called: merge mining, auxiliary proof of work, AuxPoW
Merged mining lets you mine several cryptocurrencies that share the same algorithm at the same time, without using any extra energy.
Merged mining means using the same computing work to secure two or more blockchains at once. It is only possible between coins that share the same algorithm, where one of them, known as the auxiliary chain, accepts the proofs of work produced for the other. The best-known example pairs Litecoin and Dogecoin, both Scrypt coins, since 2014.
Technically, the miner prepares a block for the main chain and slips into it a reference to the auxiliary chain's block. Every hash computed is then checked against both networks. Since Dogecoin's difficulty is not the same as Litecoin's, a single solution can validate a block on one chain, the other or both. The miner thus receives several rewards for a single electricity outlay.
In practice, nothing needs to change on the machine: it all happens at pool level. You simply choose a Scrypt pool that offers merged mining and, if it asks, provide a wallet address for each coin. Some pools also pay out additional small Scrypt coins. A Scrypt machine, such as the Antminer L series, therefore produces both Litecoin and Dogecoin.
Our Litecoin and Dogecoin collection brings together the Scrypt ASICs compatible with this way of mining.