Crypto

Binance has a proposal for the expected shock effect in Litecoin and Bitcoin


According to a report published today by Binance Rersearch, the research unit of the cryptographic exchange Binance, the impact of block award halves for both Bitcoin and Litecoin mining can be mitigated by merged mining.

In his assessment of the 2015 Litecoin block award half, the half said it could cause some miners to shut down their devices. Lee also stated that the half-life would be a shock to the system.

Binance Research analyzed the potential of merged mining as a way to maintain the incentive awards given to crypto-money miners in a report on this issue.

Combined mining allows one miner to mine at more than one Blockchain at the same time. So far, there are three major examples of combined mining, such as Namecoin combined with Bitcoin, Litecoin and Dogecoin, and Myriadcoin combined with both Litecoin and Bitcoin. The report also addressed some of the flaws of combined mining. Accordingly, miners, for example, may not be encouraged to support child blockchains due to costs. For the project team, the risks include being connected to the main block chain and new possible attack vectors.

Binance Research points to Dogecoin, which has been operating for nearly six years, as the most successful example of combined mining. Adopting this model in August 2014, Dogecoin experienced a 1500% increase in its mining hash rate. The report also states that 90 percent of Dogecoin's total hash rate comes from Litecoin mining ponds.

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