What is Merged Mining (Mining Right Merger Procedure)

08/15/2023 18:59 • Crypto & Markets • 100 views

Merged mining refers to the process of reorganizing between the Bitcoin network and the consensus mechanism of the proof-of-work blockchain. When the block height reaches 12,888, a new forked coin will be automatically included in a chain for processing, which means that this forked coin is the first Bitcoin token mined.

Merged mining is a way to improve reward efficiency by upgrading the existing two mining systems (PoW and POS). According to the current network version, this process is divided into three stages: the first part, the second part, and the third part, where the first and second steps are the same, but it is important to note that there will be a difficulty adjustment after this stage (if there is an increase in difficulty, it will bring a new round of work). According to the original plan, after two difficulty changes every two weeks, the entire software will be updated until a new block appears.

To ensure security, merged mining uses a “hash function” (HashCode), which allows users to create their own algorithms and modify block header information to calculate their hash value. The hash function is a mathematical operation method that can be used to generate more transactions of digital currencies like Bitcoin.

Mining Right Merger Procedure

The mining right merger procedure (PoW) is implemented through the transfer of computing power and will be adjusted according to a certain proportion after Bitcoin halving.

Since the Bitcoin network produces a new block once every four years, it takes three months to complete the mining right merger confirmation process. During these three days, two fees will be generated: mining rewards and miner fees (approximately 100BTC), and the profits will be determined by the market. (Note: The 5-year output time is from February 2, 2019 to February 3, 2020).

To ensure the security of mining operations, when a new cryptocurrency enters the main network or starts running, all mining pools and exchanges will automatically receive income from its holders. If users want to get higher income, they can first deal with other miners and then distribute rewards to other mining pools (such as Antminer S17Pro, Whatsminer M30s, etc.), or directly purchase the token (such as BCH) from the service provider of the mining pool to obtain additional income.

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What is Merged Mining (Mining Right Merger Procedure)

Mining Right Merger Procedure

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