Bitcoin and Litecoin have always been high-profile representatives in the field of digital currencies, and a recent report suggests that merged mining may be an effective way to mitigate the shock of Bitcoin and Litecoin’s reward halving. This idea has sparked a lot of discussion, and today we’re going to delve deeper into the topic and reveal the potential and impact of merged mining in the world of cryptocurrencies.

 Merged Mining: A New Direction to Solve the Halving Shock

As a new mining method, merged mining aims to integrate the computing power of different blockchain networks to improve the overall mining efficiency. As the Bitcoin and Litecoin halving events approach, the mining industry is facing unprecedented challenges. The traditional single mining model has been unable to meet the increasing computational difficulty, and the emergence of merged mining has brought new hope to the industry.

 Bitcoin Halving: The Game Between Mining Difficulty and Rewards

Bitcoin’s halving event is one of the focuses of the market. Whenever this event occurs, the balance between mining difficulty and rewards will be challenged. Past data shows that before and after the halving, the mining difficulty showed obvious fluctuations, which not only affected the profits of miners, but also challenged the stability of the entire network. By merging mining, different blockchain networks can share computing power, effectively alleviating this problem.

 Litecoin’s mining innovation: the pioneer of merged mining

As a derivative of Bitcoin, Litecoin has been committed to the innovation of mining technology. Recently, the Litecoin community began to explore the possibility of merged mining and achieved certain results. Through merged mining with other blockchain networks with similar algorithms, Litecoin has successfully improved mining efficiency and set an example for the entire industry.

 Advantages and Challenges of Merged Mining

Merged mining undoubtedly brings many advantages, such as improving overall computing power utilization, reducing mining costs, and increasing network security. However, achieving the goal of merged mining will not be easy and requires solving many technical and collaborative challenges. Only through the joint efforts of miners around the world can merged mining become the norm in the digital currency world.

 Future Outlook: A bright future for consolidated mining

As the digital currency industry continues to develop, merged mining is expected to become the mainstream mining method in the future. By integrating global computing resources and achieving efficient mining, it can not only improve the overall level of the industry, but also lay a solid foundation for the long-term development of digital currency. I believe that in the near future, we will see more blockchain networks join the ranks of merged mining and jointly promote the progress of the industry.

In the field of digital currencies, merged mining is seen as an effective way to solve the halving shock problem of Bitcoin and Litecoin. With the continuous advancement of technology and continuous innovation in the industry, merged mining is expected to lead a new trend in mining methods and bring more possibilities to the entire digital currency industry. Let us wait and see and witness the future of the digital currency world together!

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’s research arm released a report on July 12 stating that merged mining could mitigate the impact of the Bitcoin (BTC) and Litecoin (BTC) mining block reward halving.

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After Lee predicted that some miners may stop mining Litecoin after the reward halving on August 5, 2019, Binance Research analyzed the potential of so-called “merged mining” in retaining the enthusiasm of crypto miners.

Merged mining is the method of implementing auxiliary proof of work (AuxPoW), which will use the work completed to build a certain blockchain or a certain parent chain to other smaller sub-chains. There are three main examples of merged mining so far, including Namecoin (NMC), which was spun out of the Bitcoin blockchain, Dogecoin (DOGE), which merged with Litecoin, and Myriadcoin (XMY), which merged with LTC and BTC.

In the report, Binance Research concluded that merged mining could “provide potential opportunities” to increase mining rewards in the event of future block reward halvings for Litecoin and Bitcoin. Binance also added that other smaller chains may also move to Auxiliary Proof of Work (AuxPoW) to guarantee a higher level of network security while reducing the need for a single mining rig.

At the same time, Binance’s research department warned about the potential pitfalls of merged mining from both the perspective of miners and project teams. Miners may lose incentive to support sub-blockchains due to high operating costs and potential drops in coin prices. From the perspective of a project team operating PoW crypto assets, the risks it faces include not only the dependence of the sub-chain on the parent chain, but also potential new attack vectors.

In the report, Binance Research also believes that Dogecoin, which has been operating for about six years, is the most successful example of merged mining to date. Dogecoin in
After adopting merged mining mode in August 2014, its mining hashrate increased by 1,500%, showing correlation with the Litecoin hashrate. According to the report, as of July 2019, almost 90% of Dogecoin’s total hash rate comes from large Litecoin mining pools.

On July 5, Dogecoin appeared on the Binance exchange’s crypto trading platform. On the same day, the exchange released "Crypto-Related Comments for the Second Quarter of 2019", stating that Dogecoin, like Bitcoin, showed low correlation with other cryptocurrencies in the second quarter of 2019. However, Dogecoin still maintains a significant correlation with Litecoin, which is mainly caused by the joint mining of the two coins.

On July 9, Bitcoin’s mining difficulty reached an all-time high of 9.061012, and its hash value was an average of 64.851018 per second.