Crypto users who are familiar with Litecoin (LTC) probably know that the currency utilises a cryptographic algorithm called Scrypt which is different from some of the more famous cryptocurrencies such as Bitcoin (BTC) which utilises the SHA-256 algorithm. The SHA-256 is generally considered to be more complex compared to Scrypt, while providing a greater degree of parallel processing. DOGE, like LTC, uses the Scrypt algorithm.

It is already common knowledge that for BTC miners that wish to make a profit from the industry, it is compulsory for them to utilise multiple ASIC (Application-Specific Integrated Circuit)hardware, which are machines made specifically for mining BTC or other SHA-256-based cryptocurrencies. In contrast, the way Scrypt was designed made it more difficult to construct custom machines similar to ASIC hardware for the algorithm, thus making it easier for investors who only own GPUs (Graphic Processing Units) or CPUs (Central Processing Units) to participate and compete in the network as miners.

There are manufacturing firms that introduced and sell Scrypt ASICs, which do give anyone who owns them an edge over others. However, it is most probably more profitable if the owner utilises the high-quality mining rig to mine LTC. In fact, DOGE is usually mined alongside LTC as an ‘additional income’, as ‘merged mining’ is possible for the two coins. Merge mining is a process where low hash powered cryptocurrencies, in this case DOGE, have their network hashing power increased by ‘sharing’ the high hashing power used to mine more popular coins, in this case LTC. To put it simply, miners will be able to mine LTC and DOGE simultaneously without drops in their hashing power.