What is merged mining? An analysis of the pros and cons of one computing power and double rewards.

Merged mining allows miners to simultaneously mine two types of crypto assets, achieving “passive income.” This article details its principles, advantages and disadvantages, applicable coins, and operational methods. This article originates from a piece written by Dr. Chai on crypto, organized, compiled, and authored by Rhythm BlockBeats. (Background: How low is the success rate of independent miners in block generation? A complete guide to Bitcoin mining) (Background: Tether is looking to engage in “real mining” by investing in the gold mining industry, currently holding 8.7 billion USD in gold reserves) Merged mining is a clever mining method that allows miners to use the same computing power to mine two types of crypto assets without increasing additional electricity costs or hardware burdens. It is based on a parent-child chain mechanism: the main chain (such as Litecoin) is responsible for the primary computations, while the child chain (such as DOGE) “borrows” this work to validate its own blocks. Miners automatically receive rewards from the child chain while mining the main chain. A simple analogy is like using the same lottery ticket to participate in two lottery games. If you “win” (solve a block), the prize money from both pools belongs to you! The entire process is almost transparent for miners; they only need to connect to a mining pool that supports merged mining to achieve “dual mining with one machine.” This differs from solo mining as it fully utilizes shared algorithms (like Scrypt), enhancing overall efficiency. According to the latest data, merged mining has become the preferred strategy for many miners by 2025, especially in the active MEME coin market, as it helps miners diversify risk and increase revenue. The principle of merged mining: how to achieve “dual mining with one machine”? The core of merged mining is algorithm compatibility and protocol collaboration. Both chains must use the same mining algorithm (such as Scrypt); when the main chain generates a block, it embeds validation information for the child chain. The proof of work (PoW) submitted by miners applies to both without the need for additional computation. Workflow – Miners connect to a mining pool: choose a pool that supports merged mining (for example, F2Pool or ViaBTC). – Computing power allocation: the mining rig calculates the hash value for the main chain (like Litecoin). – Child chain validation: the child chain (like DOGE) automatically uses this hash to validate its transactions. – Dual rewards: after successfully generating a block, miners receive coin rewards from both the main chain and the child chain. This technology is implemented at the mining pool level, requiring no complex setup for users. Merged mining significantly enhances the security of the child chain without increasing miners' energy consumption. What coins support merged mining? By 2025, the most mature merged mining combination remains Litecoin (LTC) and DOGE, as both share the Scrypt algorithm, operate stably, and have extensive mining pool support. Currently, Litecoin's market capitalization is 8.89 billion USD, while DOGE's market capitalization is 33.823 billion USD. Emerging combinations – PepeChain and Bells: these meme coin projects have joined Scrypt merged mining, leveraging Litecoin's computing power to enhance security. – Other child chains: such as LKY, PEP, JKC, DINGO, SHIC, CRC, commonly supported in pools like F2Pool. – Historical cases: Bitcoin and Namecoin once merged mined but have gradually faded out. With the MEME coin craze, more projects like PepeChain are leveraging the ecosystems of Litecoin and DOGE through merged mining, and by 2025, more emerging chains are expected to join. Advantages and disadvantages of merged mining: can you really achieve “passive income”? The biggest attraction of merged mining lies in the efficient use of resources, but it is not without flaws. Here is an analysis based on actual cases from 2025. Advantages – Additional revenue with no extra cost: using the same computing power to mine two coins does not change electricity costs but yields an extra reward. For example, while mining Litecoin, you automatically receive DOGE, which can enhance overall revenue. – Enhanced network security: the child chain borrows computing power from the main chain, reducing the risk of a 51% attack. DOGE significantly strengthens its computing power through merging with Litecoin. – Low threshold: no new hardware is needed, making it suitable for existing Scrypt mining rig users; the mining pool handles everything automatically, making it simple to operate. – Ecological synergy: merging of DOGE and Litecoin promotes multi-chain development, benefiting emerging projects in 2025. Disadvantages – Algorithm limitations: limited to the same algorithm (like Scrypt), not supporting cross-algorithm mining. – Mining pool dependence: not all pools support it (some only distribute main chain rewards), so it is necessary to choose transparent pools, or else you might lose child chain earnings. – Potential concentration risk: excessive dependence on the main chain's computing power could impact the independence of the child chain. – Overall, merged mining is suitable for miners seeking stable additional income but requires monitoring of coin prices and mining pool policies. How can newbies start merged mining? 1. Prepare hardware Choose Scrypt mining rigs, such as ElphaPex DG 2 series or Antminer L9 series. 2. Choose a mining pool For example, F2Pool (supports LTC+DOGE+BELLS, etc.) or ViaBTC (transparent distribution of multi-chain rewards). 3. Set up the mining pool Access the web control panel of the mining rig, set the URL, port number, miner name, password, and other basic information in the management interface. 4. Connect the mining rig Configure the mining pool URL and port, and start mining. The pool will automatically record dual coin earnings. 5. Monitor earnings Use the mining pool dashboard to check; it is recommended to use cheap or clean energy to ensure profitability. Note: This tutorial is only a rough reference; the specific process should follow the user manual for the specific mining rig. 06. Merged mining vs dual mining: don’t confuse them Merged mining Same algorithm (like Scrypt), low power consumption; computing power used once, dual chains shared; suitable for ASIC miners, such as LTC+DOGE. Dual mining Different algorithms (like Ethash+TON), high power consumption; GPU resources utilized separately; suitable for GPU mining but with complex configuration and heavy hardware burden. The former is more efficient and energy-saving, while the latter is flexible but costly. The choice depends on your hardware and goals. Conclusion: Merged mining, an efficient new choice for “gold mining” Merged mining is a smart strategy for “dual mining with one machine,” especially suitable for the classic combination of Litecoin (LTC) and DOGE, which can significantly enhance revenue and network security by 2025. This merging method allows miners to automatically reap DOGE rewards while mining Litecoin, increasing overall earnings without additional electricity costs. However, it is also limited by algorithm compatibility (like having to share Scrypt) and coin price fluctuations. In the future, as more projects like Bells and PepeChain join the Scrypt ecosystem, leveraging merged mining to enhance network security and efficiency, the potential of this trend will be even greater. Some emerging chains like Pepecoin have already achieved multiple merged mining, further diversifying risks and attracting small miners. Additionally, under environmental pressures, merged mining can optimize energy use, promoting sustainable “gold mining.” Overall, this is a strategy worth paying attention to, helping miners steadily increase their income in a volatile market while rationally participating by monitoring real-time coin prices and mining pool policies.