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Topic: The Future of Dual Chains and Merged Mining: A Theoretical Discussion (Read 28 times)

legendary
Activity: 2940
Merit: 1090
Weird that you neglected to mention the whole family of coins merged mined alongside BiTCoin?

Starting with NaMeCoin, onwards through DeVCoin, IXCoin and I0Coin all three of which still enjoy huge difficulty thanks to the still ongoing merged mining, then also a whole slew of others some of which might not be currently merged by a whole lot of mining power, down even to GeistGeld which with its 8 seconds or so block time target kind of breaks attempts to merge it with bitcoin since re-starting a mining attempt every 8 seconds leads to processing overhead high difficulty and much higher target blocktime chains would prefer not to deal with. Still mergeable though with other low difficulty chains some of which I am actually a bit reluctant to even list here being as how some are so low in difficulty one can even pick up lots of them lots of the time just with a CPU or few unaugmented with merged mining...


-MarkM-
newbie
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The Future of Dual Chains and Merged Mining: A Theoretical Discussion

The development of blockchain technology has made merged mining a key solution for smaller cryptocurrencies to sustain their networks. Litecoin (LTC) and Dogecoin (DOGE) already share the Scrypt algorithm to enable merged mining, with Infinitecoin (IFC) also integrated. This model could evolve into a “one-chain” future or even a “two-chain coexistence” model.

1. Technical Feasibility of Merged Mining

Merged mining allows multiple blockchains to share the same proof-of-work (PoW) system through Auxiliary Proof of Work (AuxPoW):
   •   Bitcoin and Litecoin: Currently, the incompatible algorithms (SHA-256 vs. Scrypt) prevent direct merged mining. However, algorithm adjustments or multi-algorithm compatibility could make this technically feasible.
   •   Infinitecoin as a Pioneer: Smaller coins like IFC use merged mining to enhance network security, setting a precedent for larger coins like LTC.

2. Economic Drivers and Network Security

Small cryptocurrencies face challenges in maintaining nodes and hashrates:
   •   Insufficient Transaction Fees: Reliance solely on fees cannot sustain miners, leading to weaker networks.
   •   Need for Merged Mining: Sharing mining resources reduces costs for miners and strengthens smaller networks’ defenses against attacks.

In the future, as LTC mining rewards deplete (similar to BTC’s eventual state), merged mining may become essential to sustain its network and incentivize miners.

3. From “One Chain” to “Two Chains”

If blockchain networks consolidate into fewer core chains:
   •   Single-Chain Model (“One Chain”): Consolidating all mining resources into a single chain for maximum efficiency and security.
   •   Dual-Chain Model (“Two Chains”): Two key chains might dominate—Bitcoin as a store of value and Litecoin-based chains for payments and applications. Competition between two chains could ensure vitality in the ecosystem.

4. Infinitecoin’s Experimental Significance

Infinitecoin’s merged mining with LTC serves as an “early adopter” example:
   •   Compromise and Innovation: IFC integrates into the LTC ecosystem, ensuring survival while paving the way for future “one-chain” models.
   •   Fixed Block Rewards: Like DOGE, IFC’s fixed block rewards could secure long-term miner profitability and network stability.

5. Decades-Long Outlook

The evolution of blockchain mining may unfold in three stages:
   1.   Widespread Merged Mining: More cryptocurrencies adopt merged mining to survive.
   2.   Optimized Economic Models: Fixed rewards and fee structures improve miner incentives.
   3.   Global Integration: Mining resources consolidate into a few efficient blockchains.

Conclusion

Merged mining is a necessary strategy for small cryptocurrencies to overcome technical and economic challenges. Current models, like those of Infinitecoin, Litecoin, and Dogecoin, offer a clear vision for the future. As mining rewards diminish, the “one-chain” or “two-chain” structure may become the ultimate solution, ensuring a unified and efficient global blockchain ecosystem.
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