Boston, MA – 10/17/2021
An essential part to the crypto-currency ecosystem is crypto-mining. For many new comers this process may at first appear to be a hopelessly tangled bowl of spaghetti. In this post, DogeDealz embarks to explain the origins of crypto-mining in simple terms that it hopes average new comers to dogecoin “baby shibes” can understand. To answer this correctly we take the reader through a short genealogy of dogecoin and where it came from.
You of course may have heard that dogecoin started as a joke. In truth, depending on which of the founders you ask, this may or may not actually be true. Many people attribute the founding of dogecoin to Billy Markus, the guy who is known on Twitter as @BillyM2k and also playfully referred to as Shibetoshi Nakamoto which is a nod to the original Satoshi. Unlike Satoshi, Shibetoshi is famous for selling his stake in dogecoin for a Honda Civic a few years before dogecoin became mainstream.
The other guy is also well known, but his public image isn’t as topical to those who may be new to crypto. His name is Jackson Palmer, his twitter handle is @ummjackson and unlike Billy’s often snarky comments concerning the project, @ummjackson has a more nuanced perspective and philosophy. From experience in working on joke projects, something tells me that Jackson probably had more to do with dogecoin’s creation than Billy, but that’s a matter of personal speculation. His latest tweet came in July of this year when he announced he would not actively be seeking to influence the community out of concerns for where the crypto-currency ecosystem was headed.
If you’re interested in more backstory, here is an interview we found with Jackson hosted by “Money & Tech” on YouTube:
OK. So, what did Billy and Jackson actually do to create dogecoin? Well. . . they “forked” Litecoin #LTC. What exactly does that mean? Did they stick a literal fork in it? Well, sort of. In “block-chain” “forking” is a process that splits up the decentralized transaction ledger also known as “the established source of truth” into multiple sources of truth, a lot like what we would call, in the days before GPS, a “fork in the road”.
That’s why DogeDealz commonly refers to Litecoin #LTC as #dogecoinclassic and constantly missives about Litecoin #LTC being undervalued. . .
Litecoin #LTC itself is a “fork” of Bitcoin #BTC by creator Charlie Lee who on Twitter is @SatoshiLite and would also be an interesting follow for any baby shibe wanting to learn about mining, forks and genesis blocks.
Ok. Great. So why DogeDealz are you telling me this rabbit hole of a back story? I just want to learn how to mine dogecoin. Just tell me how to do it!
Well, to do this properly and to give you a complete understanding of what you are getting yourself into, if mining is something that you want to get into, whether you want to do it yourself for fun, or eventually do it professionally by supporting an advanced commercial mining operation like #PROHASHING who, by the way, appear to be hiring, then it’s useful to have an understanding of the full story, even if you haven’t learned a lick about mining from DogeDealz yet.
OK, so then why the need for all of this talk of forks, and founders and blocks and rabbit holes? What do miners actually do, and what is a miner?
A miner is any processor (a chip inside of a computer) that devotes resources to solving the complex cryptographic algorithms associated with a particular block-chain. This is typically a CPU, a GPU or an ASIC device. These chips vary in hardware cost, power draw and overall profitability depending on which block-chain the processor is assigned to solve, how complex the computation is associated with a particular block-chain at a given time and other environmental variables like network connectivity and the number of other computers that are attempting to solve the same problem at the same time.
The various buzz words you may have heard in the crypto-mining community including Proof of Work, Proof of Stake and also the very elusive Proof of Donut.
WARNING – this is very advanced crypto and not for baby shibes. To go there you will first require to obtain the very elusive Japanese Litecoin #LTC fork MONACOIN @tcejorpniocanom. She is a cat. Very elusive.
Ethereum is in the process of transitioning to a Proof of Stake consensus method, so we won’t concern ourselves with it here except to share this link, tell you that it will work based off creating consensus of things called special validator nodes and the fact that the #doge #ethereum or #dogethereum bridge is supposedly coming. However that unicorn turns out looking and exactly how to mine for that unicorn is strong kleene determinant, but I digress.
Dogecoin Mining! Okay! YES! Yay! Finally! Proof of Work!
Bitcoin, Litecoin, Monacoin and Dogecoin are all proof-of-work algorithm block-chains. So if you’re trying to mine doge then you will be committing computational resources to performing proof-of-work for the foreseeable future. To that end, you may have heard that proof-of-work is bad for the environment because of the power draw required to maintain the network of miners, seeing that proof-of-work assigns rewards for solving the cryptographic algorithm associated with the distributed transaction ledger to whichever of the solo miners or pool of miners (many miners working together) solves the transaction ledger and sends it out the fastest to other nodes, which means that miners compete for transaction blocks with both advancements in chipsets (ASIC is stronger than GPU which is stronger than CPU) and raw power.
However, like Moore’s “Law” for the exponential rise in CPU speed and cost reduction, as time passes, it’s likely that the proof-of-work marketplace will see similar advancements in energy efficiency and computational speed as more engineers put their minds together to solve the environmental issues associated with proof-of-work, so investing in proof-of-work is probably still a sound investment, particularly with the advent of quantum computing emerging on the near horizon.
So if you choose to participate in crypto-currency mining you have these two fundamental choices, whether you intend to mine or contribute to transactional consensus through proof of work, proof of stake or proof of donut, and whether you choose to mine “solo” or in a “pool”. We hope that the information above arms you with a solid jumping off point for investigating the questions further.
Well, that’s it for now baby shibes. Here are some resources below that were recommended to DogeDealz by the #dogecoin community to further you in your crypto-mining journey. If you have any specific questions and would like to learn more please don’t hesitate to reach out.
Here are some resources for a deeper dig:
- UnMineable https://unmineable.com/
- Prohashing https://prohashing.com/about/careers
- RedPanda Mining https://www.redpandamining.com/
For the next update in this “Everything Shibes Need to Know about Mining” series, follow this link.
Stay tuned for more updates on how to mine with Minera on a Raspberry Pi OS.