Merged Mining

What Is Merged Mining 

Merged mining is a process that allows a miner to use the same computational work to secure multiple blockchain networks simultaneously. In this setup, a miner solves a proof-of-work problem that can be applied to both a primary blockchain and one or more auxiliary blockchains. The idea is to reuse the same hash computations so that the energy and resources spent on mining benefit more than one network at once, providing an incentive for miners to support additional chains without sacrificing their efforts on the primary chain.

The technical mechanism behind merged mining involves constructing a block header that includes a reference to both the primary and auxiliary blockchains. Miners generate a proof-of-work that satisfies the difficulty requirements for the primary blockchain, while also embedding a commitment to the auxiliary chain’s data. Once a valid proof-of-work is found, it can be submitted to both networks, effectively proving that the miner has performed the necessary work. This dual submission is enabled by the auxiliary chain design, which recognizes and accepts proofs of work from the primary chain as valid for its own consensus process.

Merged mining provides several operational benefits, particularly for smaller or emerging blockchains that may struggle to attract sufficient mining power on their own. By linking with a more established primary blockchain, these auxiliary chains can benefit from increased hash power, enhancing their resilience to attacks. At the same time, miners can earn rewards from multiple blockchains with minimal additional effort, optimizing resource usage. This arrangement encourages greater collaboration and shared security among blockchain networks, although it also requires careful coordination to ensure that both chains maintain their individual integrity and consensus rules.

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