What is Merged Margin ?

Today we’re Going to Discuss about What is Merged Margin ? so Let’s start

What is Merged Margin ?
Merged mining refers to the operation of mining two or more cryptocurrencies at the same time, without sacrificing overall mining performance. Essentially, a miner can use their computational power to simultaneously mine blocks on multiple chains known as Auxiliary Proof of Work (AuxPoW).

The idea behind AuxPoW is that work done on one blockchain can be leveraged as valid work on another chain. The blockchain that provides proof of work is called the parent blockchain, while the one that accepts it as valid is the subsidiary blockchain.

To perform merged mining, all cryptocurrencies involved must be using the same algorithm. For example, Bitcoin uses SHA-256, meaning virtually any other coin that uses SHA-256 can be mined with Bitcoin – as long as the technical implementation is done correctly.

Notably, the parent blockchain is rarely affected as it does not need to undergo any kind of technological changes. On the other hand, the supporting blockchain needs to be programmed to effectively receive and accept the work of the parent chain. In general, merged mining requires a hard fork to add or remove support.

In theory, merged mining could be an interesting method for small (low-hash) blockchains to increase their security, by leveraging the hashing power of Bitcoin or another large chain. This could potentially reduce the chance of a 51% attack as long as enough miners agree to adopt merged mining.