Invest in AuxPow

Invest in AuxPow

In Aux Pow, also referred to as “Merge Mining” - a cryptographic mining process, a hash rate, and proof of work are simultaneously presented to many blockchain networks. The mining activity used to add transactions and solve blocks can consequently be used to complete the same task for another.

In this article, I will evaluate all the merits and demerits of merge mining and specifically why different altcoin teams and altcoin multipools start to invest in Aux Pow. It is indeed going to be of good help in knowing the vital points to capitalize on or avoid in other to make merge mining a reality.

Pros

1. Merge mining makes it possible for the very mining equipment to be used to generate new blocks in various networks.
2. Merge mining is not hidden from the public. Instead, it can be seen through the chains mined along with any given block. For this reason, data on concealed forks can be made available. In addition, data on total mining power can be provided, and security is improved due to its ability to expose more than 50% of attacks.
3. Merge mining raises the hash power in blockchain networks. This builds higher computational power for networks, thereby making networks more robust and secure. This is advantageous for minor blockchains, which have little hashing power and hence suffer low-security levels. For example, look at Namecoin; although it has a small blockchain, its level of security is still comparable to that of Bitcoin. Thanks to the "difficulty" generated through merging mining.
4. When a blockchain allows several proofs of work utilizing the same hash function, it becomes easy for miners to toggle between one or the other. This can result in a hash rate swing between the chains since miners will keep switching to the most beneficial opportunity. 
5.  It is economically profitable for miners to merge mines where possible. This is because miners gain the economic merits from the block rewards of the extra chains without needing to use any substantial extra hash power.
6. Chains that are merged mined can be very separate from each other. However, they are not independent in the way they were mined. Protocols to involve cross-chain consensus rules can be set up. Just like with sidechains, it will help to establish an interaction between them.

Cons

1. Merging mining a large blockchain with a high hash rate like Bitcoin with a comparative less value blockchain may result in specific problems if it does not gain substantial acceptance. For instance, if fewer Bitcoin miners employ this merge mined chain, a more significant portion of the Bitcoin hash rate will be rendered unused. Furthermore, those miners who are not involved can choose to set their hash rate towards mining the new blockchain with less cost, as well as attack it. Techniques to keep off these attacks include applying the cross-chain consensus rules and using the visibility of merge-mining activity. However, those techniques do not rule out the possibility of such attacks.
2. Merge mining permits miners to generate blocks for extra chains by reusing the same hash rate at a lower price. Nevertheless, they must install and launch the software for generating blocks in the primary chain, which they may not be acquainted with. They would also be required to maintain a node for this direct chain, which could come with substantial bandwidth demands if it has consistent or large blocks. As such, it could be uneasy for a small-scale miner to do. There have also been arguments that merge mining can raise centralization in the parent chain.

There is an alternative approach to stay away from these issues – Blind Merge Mining (BMM). This approach does not seem to have profited much in reality, but it is still reasonable. In BMM, the child chain blocks are not designed by the miner of the parent chain. Instead, they are constructed by a separate party. That party pays the miner to add the child to his block for the parent chain. The miner doesn't need to know anything concerning the child chain. Instead, he takes the payment for adding extra data to his blocks.

1. A Bitcoin miner will acquire the rewards in the child blockchain token and not in Bitcoin if he chooses to merge mine. He will not receive those rewards in Bitcoin.
2. A parent chain, though unacceptable, can be incentivized by the miners' behavior of the child chain. For instance, a bitcoin miner may receive a greater block reward in the child chain if they mine empty Bitcoin Blocks. This would be an instance of an unaccepted fallout of merge mining and could result from poorly built cross-chain consensus rules or a deliberate attack on the parent chain.

Invest in Aux Pow Conclusion

Following the knowledge shared in this article, you should be able to independently decide if merge mining is something you’d like to try out. With merge mining, there is a possibility of designing a blockchain that can only be merged and mined with Bitcoin blocks which do not include transaction spending from particular addresses. For instance, these addresses may be connected to government-sanctioned persons, and the creators of the child chain desire acceptance by these government bodies and so can’t risk it. It is thus suitable to have a solid knowledge of the theoretical aspects before considering the technical aspects.