Merged Mining — What It Is And How Important Is It In The Cryptocurrency Market

With the increasing demand for cryptocurrencies and investors in this environment, new ways to obtain advantages and maximize not only the profit, but also the amount of effort used are constantly emerging. That’s how the merged mining technique emerged, which aims to use the work of a mining operation for other currencies.

Want to better understand what it is, how it works and its importance to the market? Then check out the main information on the subject!

Merged Mining — What It Is And How Important Is It In The Cryptocurrency Market

What is merged mining?

Merged mining is a practice that is becoming more and more common among professionals responsible for mining cryptocurrency blocks, especially those who use the Proof of Work system, as is the case with Bitcoin.

Also known as auxiliary work proof, the technique aims to use the same effort to mine two different cryptocurrencies.

How does combined mining work?

After all, if they are different cryptocurrencies and they also have different blocks, how is it possible to carry out transactions together? Although it seems complicated, merged bitcoin mining Raspberry Pi uses the similarities that each of these currencies has in relation to the other in order to work.

For this, it is necessary to use a primary bitcoin mining Raspberry Pi, which will be used as a base. Then, just choose a cryptocurrency that uses the same algorithm.

Furthermore, the functioning also depends on two important points: the primary blockchain must accept data input in its header and the secondary must include verification logic that proves that the work was done through the primary chain.

After finding the solution of the combined mining equations, the professional can find three different results according to the difficulty:

  • Low: Cannot resolve for both currencies;
  • Medium: Is able to validate only one of the strings, usually the secondary one;
  • High: Is enough to cause both strings to validate.