Litecoin and Dogecoin Merged Mining: How One Scrypt Miner Earns Two Coins

Two coins, one algorithm

Litecoin (LTC) and Dogecoin (DOGE) both use the Scrypt algorithm. That is why one kind of machine can mine either coin, and why people talk about “Litecoin miners” and “Dogecoin miners” as if they were the same thing. On the OneMiners site they mostly are: the Litecoin and Dogecoin collections show the same kind of machines, labelled “Doge / LTC”.

A Scrypt ASIC cannot mine Bitcoin, which uses a different algorithm called SHA-256. Our guide to which coins an ASIC can mine covers this.

What merged mining is

Merged mining, also called auxiliary proof of work or AuxPoW, lets a miner work on more than one blockchain at the same time without extra computing. One piece of work counts for the main chain and for a second chain. In this pair, Litecoin is the main chain and Dogecoin is the second.

In practice you do not do anything special with the machine. You connect it to a pool that supports merged mining. ViaBTC’s beginner guide says the pool handles the second chain for you, so one machine and one hashrate earn rewards for both coins.

You are never forced to do it. Merged mining is an option that the pool offers, so you can choose a setup that mines only one of the two.

Where it came from

The idea has a clear history, which is useful when you hear claims about it:

• Crypto.com University writes that Litecoin’s creator, Charlie Lee, proposed merging the mining of Litecoin and Dogecoin in April 2014, because both coins use Scrypt.
• Litecoin.com adds that Dogecoin’s own network was in danger at that point. After months of discussion the Dogecoin community agreed, and Dogecoin changed its software to allow merged mining.
• Crypto.com University dates the start of merged mining to September 2014.
• Litecoin.com says Dogecoin’s hashrate rose a lot once Litecoin pools added merged mining. In other words, the extra miners made Dogecoin harder to attack.

This is why many people think of the two coins as partners: Dogecoin gained security from Litecoin’s miners, and the miners gained a second reward.

What it does and does not change

• It does not double your hashrate. The machine does the same work as before. What changes is how many coins that work can earn.
• It does not guarantee a second reward. ViaBTC notes that merged rewards are not guaranteed, so read the pool’s terms to see how the second coin is paid.
• The two coins have different rules. Reward amounts, schedules and difficulty are different for each, so a calculator that handles both separately is more reliable than a single rough number.
• It does not remove electricity cost. Merged mining earns more from the same power, but power is still the main cost. See what drives mining profitability.

What to check before you buy

1. The algorithm. The listing should say Scrypt (LTC and DOGE).
2. Hashrate and unit. Scrypt machines are listed in MH/s or GH/s, which are small numbers compared with Bitcoin machines. Compare units carefully, as in our spec sheet guide.
3. Efficiency and power draw. A more efficient machine keeps more of each reward after electricity.
4. Cooling. Some Scrypt machines are air-cooled and some are liquid-cooled. A hosting site supports only certain types.
5. Pool support for merged mining. Check that the pool mines both coins, what it charges and how it pays. Our article on pool payouts explains the common methods.
6. Your own numbers. Test both coins in the calculator with your power price. Count the merged rewards once.

Where to look on OneMiners

The Litecoin miners collection and the Dogecoin miners collection have filters for brand, cooling, price, energy efficiency and hashrate. The calculators page lets you test your own electricity price.

If you want to know how a hosted order works from payment to payout, read from order to payout. Terms such as merged mining and hashrate are also explained in the glossary.