Definition
Merged mining is a concept in cryptocurrency where a miner can contribute hashing power to more than one blockchain network simultaneously using the same proof-of-work. It allows a primary blockchain and one or more secondary blockchains to share the results of a single mining operation without weakening the security of the primary chain. The blockchains involved must use compatible mining algorithms so that the same work can be recognized by each network. This setup lets miners potentially earn rewards from multiple coins while performing essentially one set of computations.
Context and Usage
Merged mining is often used by smaller or newer proof-of-work coins that want to benefit from the larger hash power of an established network. By linking their security to a stronger chain, these secondary networks can make it more difficult and expensive for attackers to reorganize blocks or perform double-spend attacks. For miners, merged mining can improve the overall efficiency of their operations because the same hardware and energy usage can support multiple chains. The concept focuses on sharing security and mining effort, without requiring miners to split or reallocate their existing resources.