Why Bitcoin miners should start merge-mining now
Amidst the full-scale bear market, everyone is looking for more opportunities to make money, as mere HODL is not enough. While retail traders and investors may turn to DeFi products and services, Bitcoin miners have a risk-free chance to earn extra income. Let’s take a look at the advantages of merge-mining and top protocols merge-mined with Bitcoin.
Better late than never
The concept of merge-mining was first introduced back in 2010 by mysterious Satoshi Nakamoto himself. In a forum thread, he explained how miners can search for proof-of-work in two networks simultaneously. Thus, a process of mining two or more cryptocurrencies at the same time got the name merge-mining or merged mining. The main peculiarity of this type of mining is that miners can reuse the hashrate of the parent chain, for example, Bitcoin, to find proof-of-work in the child chain and earn block rewards of both networks without any hashrate loss or extra operating cost.
With the new cycle of a bear market gaining momentum, BTC miners, especially those with less experience, are urged to either look for ways to decrease their production costs, increase their revenue or turn their rigs off. Luckily, merge-mining is a great measure of keeping the mining business afloat. Just think about it. There is no need to buy extra hardware or modify the existing equipment, as Bitcoin miners can merge-mine any blockchain that runs on SHA-256. Miners receive block rewards as well as transaction fees from both networks, provided they succeed to find proof-of-work. Furthermore, merge-mining is considered an eco-friendly solution because it does not require extra hardware but simply reuses the already existing hashrate power.
The first and most famous merge-mining protocol that we can’t help but mention is Namecoin. It was launched in 2011 and used Bitcoin as a parent chain. In fact, there are not so many networks merge-mined with Bitcoin, namely Syscoin, Elastos, RSK, and Jax.Network. The latter has a unique merge-mining architecture, so let’s take a closer look at it.
Jax.Network was founded back in 2018 but the mainnet was launched only last year. It houses two coins, namely a stablecoin (JAX) and a utility coin (JXN). JXN is given as an additional reward on top of the BTC block reward, while JAX coins can be minted only if miners forgo their BTC + JXN block rewards, thus transferring value to stablecoins. Bitcoin miners can try the software and start merge-mining Jax.Network via JaxPool. At the moment, there is a promotion going on offering negative pool fees, meaning 0% fees on BTC mining + a 1% bonus.
Merge-mining provides a great opportunity to keep the Bitcoin mining business intact during the bear market and maximize profits. There are a number of protocols that BTC miners can easily start merge-mining right away, including Jax.Network.