Mining cryptocurrency has become popular as an effective way to earn digital assets. Mining involves processing transactions within a decentralized currency network such as Dogecoin. To do this, miners use expensive computer equipment to solve complex computer algorithms and verify transactions across the decentralized network. Users that spend their computer’s processing power on the process of mining will be rewarded with the platform’s native currency.

To understand mining cryptocurrency, specifically Dogecoin, it’s important to understand a few mining-specific key terms. These terms are the basics to almost all mining operations for cryptocurrency assets, including the Dogecoin network.

Mining Basics

  • Block size – A block refers to a list of transactions within a blockchain network. The block size refers to the maximum amount of transactional data which can go into a single block. When a miner or group of miners completely solves a block, aka they process a certain number of transactions, they are rewarded for their investment of processing power and energy into the network
  • Block difficulty – Block difficulty dictates how much processing power is needed to find a hash and solve a single block within a decentralized network.
  • Algorithm – The algorithm dictates how exactly computers will process data, store transactions, and reward mining users. Common mining algorithms for cryptocurrency include Scrypt (Dogecoin) or SHA-256 (Bitcoin), and many other algorithms have been created for different cryptocurrency assets.
  • Reward – The amount of cryptocurrency sent to miners in exchange for their time and energy used for processing network transactions. Currently, rewards are based upon a decreasing pool of rewards and eventually will be calculated using network fees rather than a pre-existing pool of assets.
  • Double spend – The concept of having a transactional-based model with no central authority to stop double spend has been solved with blockchain technology, specifically blockchain mining. This is done with network consensus of transactions.

Dogecoin Mining Requirements

There are two main forms of mining which have become popular: mining locally with your own hardware or mining via the cloud with hardware provided via a data center. Utilizing a cloud mining protocol luckily has become fairly easy to deploy as cryptocurrencies have become popular. Today a variety of different websites offer turn-key mining services with a monthly fee. To that point, we will look briefly at the hardware mining model where users purchase their own equipment and deploy it for Dogecoin mining.


Hardware mining requires a computer or specialized hardware to process transactions and successfully complete a block to be rewarded. While there are specialized pieces of mining equipment available, when mining Dogecoin you can go this route and you also can go the route of creating your own powerful GPU mining rig.

Either way, the key difference after you select your hardware will be solo mining or joining a mining pool.

Solo Mining Versus Mining Pool

After you decide if you will operate a mining operation firsthand with your own hardware or establish that you will be utilizing cloud mining operations, you will then decide if you want to do the mining by yourself or within a larger network.

There are two ways that you can start to mine Dogecoin. The most popular method is to do so via a mining pool, which will aggregate your mining efforts into one larger processor and then split rewards respectively based upon your contribution of processing power to the group.

On the other hand, you can choose to mine by yourself or without a pool. This gives you more autonomy over your mining operations but also restricts the number of blocks you will be able to successfully complete.

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Author: Team