Merge Mining Cryptocurrency Concept

Merge Mining Cryptocurrency Concept
Merge Mining Cryptocurrency Concept

Merge Mining Cryptocurrency Concept – How Mining Merger Can Be Done

Merge Mining Concept. Previously, we already know what and how the beginning Altcoin emerged . Now we will discuss how the cryptocurrency mining can be combined. The general term, merging mining is called Merge Mining .

After Altcoin emerged and began to be widely known, the crowd saw as though there was an interaction between Bitcoin and Altcoin. Likewise also with the effect of the alternative coin of altcoin is against Bitcoin.

By 2015, Bitcoin’s mining climate is divided into concentration. Not entirely for Bitcoin anymore, but starting to split with Altcoin mining. In a number of large mining hash power for example, started also reaching Altcoin.

In pool mining that has a large hash power, it certainly has the potential to dominate small Altcoin, if the coin is using SHA 256. Altcoin that use SHA 256 many emerging in 2015. But gradually, Scrypt appeared and became more popular. In addition to avoiding the dominance of mining and networks, it also tries to be more resistant to ASIC. One that popularized Scrypt was Litecoin.

The dominance of the network, has happened to CoiledCoin in 2012. At that time, one pool mining Bitcoin, Eligius to decide that CoiledCoin has scam and embarrass the cryptocurrency ecosystem. Found many empty blocks in block chain. As a result, there are attacks that prevent users from transacting.

So, basically, merging this cryptocurrency mining is indeed biased. Miners, can find block while mine for Bitcoin as well as for Altcoin. However, it certainly is not done simultaneously to solve the mining puzzle at once. Miners do it by dividing their own mining resources. Divide these resources to do Bitcoin mining as well as Altcoin.

Merge Mining

As mentioned above. If on an Altcoin compiled from forking source code Bitcoin directly without doing many modifications, of course the mining of the altcoin becomes exclusive.That is, that Altcoin also uses SHA 256, because there are not many modifications to the source code. So the miners can also mine either Bitcoin, or also Altcoin this.

On the other hand, there is a disadvantage to the new altcoin. Because the same use SHA256, then make the bootstrapping process coin is also quite difficult, if using an exclusive network. However, the bootstrap altcoin process can be simplified if using merge mining . The difficulty is because there is a potential power mastery hashing, especially from miners who have great power. Then how can merge mining be done?

This begins with the idea of ​​designing altcoin that allows the mining of new Blocks both altcoin and Bitcoin. All it takes is to create a new block that can include transactions between the two. Namely, both Bitcoin transactions and also Altcoin. The hope, the transaction in the block terseut, will be applicable and accepted in both blockchain both Bitcoin and also Altcoin.

Up here, we certainly remember that the design of altcoin can be done with forking source code Bitcoin. So to write a set of rules itupun also can be in accordance with the desired.Likewise, when determining the set of rules associated with the new block later. Well, the hardest part is, to be able to place the altcoin transaction on the block Bitcoin .

Let’s review the discussion about Block Bitcoin on the How Bitcoin Works section. In that discussion, we again recall how the coinbase transaction can be done. The most important point about the coinbase transaction is that miners, can place the arbitrary data they want.

Arbitrary data on Genesis Block is raw. Contains text Title of The Times headline on January 3, 2009.
Arbitrary data on Genesis Block is raw. Contains text Title of The Times headline on January 3, 2009.

Inside the coinbase transaction, there is a scriptSig that actually does not contain any specific meaning, but can still be used to store arbitrary data. The transaction certainly has no previous transaction output because the coinbase transaction is not a transaction in general. Instead of special transactions for awarding rewards for the discovery of new blocks to miners.

With arbitrary data that can be inserted into the new block, it can also be used to block Altcoin. So when merge mining is done, mining will do a Bitcoin block count which has a scriptsig Coinbase contains a hash pointer that points to the Altcoin block.

So whether merge mining will be able to walk with a stable? What about the level of difficulty, the average timing of blocks generated between each block of both Bitcoin and Altcoin? What about new acceptable target blocks?

Basically Altcoin’s network of blocks, runs independently of the Bitcoin network. Between new block targets and difficulty levels, also independently separated from Bitcoin. At Altcoin, the average timing of creating new blocks, can also adjust every 10 minutes. So also on the target block that must be met.

A slight difference between the target blocks Altcoin and Bitcoin, usually altcoin targets will be much smaller / slightly compared with the target block Bitcoin. Associated with the level of difficulty, it is not impossible also altcoin prepared more difficult than Bitcoin. Well, until here we can see the picture that merge mining can be done.

Merge Mining For Miners

Merge mining has a strong economic impact based on its scalability. Miners, of course, will cost the same on the basis of their power hashing. That’s because miners only need to share their power hashing.

Meanwhile, when viewed from the side of Bitcoin mining, the required cost will be proportional to the electrical power that must be met. It can be said that the cost of mining altcoin will cost lower.

But for solo miners, merge mining is not profitable enough, because the income can be reduced. That’s certainly if their power hashing has been divided to mine altcoin. While in 2015, the potential of mining Bitcoin is still much larger when compared with altcoin.

Merge Mining Security Side

Although merge mining is believed to facilitate bootstrapping, but Altcoin needs to increase the resilience of various possible attacks. But still, the attacker must also require a large fee to be able to master the network.

If events happen to CoiledCoin, participants in pool mining Eligius do not even realize that their power hashing is used to master the network. Therefore, this potential can not be ignored. Moreover, for the new Altcoin with the SHA256 is still small.

The outline here, though merge mining can be used as an option that facilitates altcoin bootstrapping, but on the other hand, it also has the potential to attack. Especially when it comes to network mastery in the altcoin mining ecosystem.

Cloud Faucet Net

Cloud Faucet Net

Cloud Faucet Net is an online medium for sharing knowledge and information about Bitcoin and cryptocurrency. It was first established in March 2017. Hopefully, it can be used as a source of information as well as a reference to the addition of useful knowledge, related to Bitcoin and the technology that surrounds it.

One thought on “Merge Mining Cryptocurrency Concept

  • January 10, 2018 at 9:56 am
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    greate and Helpful blog for everyone. thanks lots for sharing this post.

    Reply

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