Dogecoin mining profit increased 3.135% and transaction fees increased 6,700% this year

Prices for Dogecoins (CRYPTO: DOGE) have fallen recently, but chain statistics show that dog currencies have seen tremendous growth this year.

What Happened: According to blockchain data service BitInfoCharts, dogecoin mining profitability increased by almost 9,500% until its peak in early May.

At the time of printing, the benchmark has been adjusted by only 3.135% compared to the first day of the year.

The total fee paid to network miners has also increased many times. According to blockchain data provider Messari, Dogecoin's total price from just $ 390 on the first day of the year rose 56.310% in early May to a high of $ 220,000, now 2,100% more than in January. It's $ 8,580. 1.1.

Importance: Dogecoin is a proof of work network. That is, it relies on miners to use the computing power of their hardware to protect their networks in exchange for new currencies and transaction fees.

If any entity has enough computing power to occupy more than half of the total computing power of the network alone, it is possible to change the transaction history and use the same currency multiple times.

Such an event, known as a 51% attack, breaks the basic beliefs and functions of blocking and cryptocurrencies. For this reason, it is very important that the anti-work protocol pays workers enough money to buy enough computing power so that such attacks can have an impact.


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