DogeCoin Mining: A Historical Overview, Perspectives, and Best Practices for Miners

Dogecoin mining involves validating blocks of transactions by solving a complex puzzle and submitting your solution to the Dogecoin Network. Every successful confirmation adds a new transaction to the block. DOGE miners require computing power to solve these puzzles and confirm transactions. By contributing their computing power to the network, the miners secure the meme-coin blockchain and receive payouts in DOGE.

A game called RollerCoin offers exciting prospects for Dogecoin miners by allowing them to play games and accumulate mining power. This mining power helps them run a virtual mining facility and mine almost any cryptocurrency you know about, including Bitcoin, Ethereum, Litecoin, Cardano, Dogecoin, Shiba Inu, and many others. Through RollerCoin, one enjoys a variety of games and receives payouts through mining their favorite cryptocurrency.

Those who aspire to be Dogecoin miners are lucky to have both RollerCoin and the conventional mining process. Both approaches are not capital or resource-intensive. Furthermore, after Dogecoin merged with Litecoin and implemented the auxiliary proof of work consensus, it became possible to get Dogecoin by mining other networks on the Scrypt algorithm.

Now that you have some little information about mining Dogecoin, here is detailed information about the history of the memecoin and Dogecoin mining perspectives and challenges.

A Historical Overview

The story of Dogecoin started in 2013 when Jackson Palmer and Billy Markus launched a meme-coin to satirize the then-cryptocurrency hype. By launching as a joke, the coin picked up faster and surged by 300% within 2 weeks. Everyone loved the idea of a digital currency that didn’t hold itself with much seriousness. Aside from that, the meme-coin somewhat assisted many non-crypto-savvy individuals in learning more about cryptocurrencies.

Palmer and Markus based their code for the network on Litecoin’s Luckycoin. At first, the network implemented a randomized block mining reward before changing to static rewards in 2014. Dogecoin uses a proof-of-work consensus similar to Litecoin.

6 years after its launch, the cryptocurrency community celebrated the listing of DOGE on Binance Exchange. As of this writing in 2024, the crypto’s market capitalization is $11 billion. In 2021, Dogecoin’s market capitalization hit an all-time high of $89 billion, as shown on the chart below:

Dogecoin’s historic market capitalization by CoinMarketCap

The network’s infrastructure has continued to garner market traction due to its active community of hodlers, developers, and miners.

Perspectives and Challenges

After starting out as a memecoin and creating its own path, DOGE has created two sides of its story: those who argue it has utility and those who say it’s useless. Blockchain users often associate cryptocurrency utility with long-term value and market appreciation. As a result, each of these claims has always influenced the cryptocurrency’s market price.

Nevertheless, the community of miners and developers has long argued that Dogecoin has utility beyond the meme culture, including a history of tipping humanitarian efforts, a payment method embraced by online retailers, and a store of value. Besides, Bitcoin, the largest cryptocurrency by price and market capitalization, hardly had any utility when it launched. Building a blockchain’s use cases is a work in progress; since developers on both Bitcoin and Dogecoin have built and are still actively building these use cases, it is not advisable to dismiss Dogecoin as a zero-utility coin.

Best Practices for Dogecoin Miners

In crypto mining, those with more computing power have the highest chances of solving the complex puzzle and receiving the reward.

Dogecoin gives you two options: solo and pool mining. You can accumulate as much mining equipment and computing power to mine solo, or else you can still contribute your computing power to a mining pool and split the reward. The upside of solo mining is you do not split rewards with anyone, but on the downside, you have to pay all expenses of running your facility.

Joining a mining pool is an excellent way to cut down on costs; the only downside is having to share the rewards amongst the pool members.

Regardless of whether you are going solo or joining a pool, here are things you need to get started with Dogecoin mining.

1. A DOGE-compatible wallet to securely store your Dogecoins after mining.
2. A powerful personal computer with strong GPUs if you are mining as a hobby. A strong GPU is one that’s suitable for video editing or gaming.
3. Use an application-specific integrated circuit (ASIC) machine instead of a powerful personal computer in case you are not getting into crypto mining as a hobby.
4. A large or mid-size warehouse to set up your professional solo mining operation. This might be cost-intensive for those starting out, but it does not mean you cannot do without it. This is for those who intend to power several ASIC machines to gain more Dogecoins.
5. Electricity will be your biggest cost, even for those mining Dogecoin as a hobby. If you have several ASIC machines for a larger operation, the cost of electricity could be astronomical.
6. A cooling mechanism is necessary to protect your equipment from all the energy and considerable heat.
7. Join a virtual mining simulator, if possible, just to learn the ins and outs of mining Dogecoin. RollerCoin is the first of its kind that aims to onboard as many newbie miners into its platform as possible so they can get real crypto through a simulated mining facility. One of the reasons to use this platform is because it’s free, you don’t pay for computing power, and you don’t have to purchase a decent PC. RollerCoin is available both on mobile and as a web-based app you can access from any computer.

Conclusion

Mining Dogecoin is not tough for beginners. The only thing you must note is that your share of computing power is equivalent to your reward. If joining a mining pool, there will also be a fee. The wisest thing to do as you begin is to compare the fees for several pools and pick a suitable one. You might not necessarily be a rich miner compared to those mining Bitcoin, but Dogecoin will serve as an excellent introduction to mining cryptocurrencies. One of the best things about Dogecoin is that mining the coin is accessible compared to most other coins. This holds particularly true if you choose to join a mining pool or mine Dogecoin through a virtual mining facility, such as RollerCoin.