Apr 30


Unlocking the Power of Merged Mining: A Game Changer for Anduro

Anduro integrates merged mining, using Bitcoin's PoW to validate transactions on its sidechains. Merged mining boosts Bitcoin miners' revenue without extra energy and enhances security of the Anduro sidechains.

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Anduro sidechains feature Bitcoin Proof-of-Work (PoW) at the heart of consensus through a process known as merged mining. Just by integrating a simple API and running a full Anduro node, any Bitcoin miner could earn Bitcoin-denominated transaction fees, in perpetuity, from each Anduro sidechain at once. Additionally, merged mining should not require additional power consumption. Through Anduro, Bitcoin miners can extend Bitcoin-denominated revenue, which is becoming increasingly crucial as the industry heads toward the next Bitcoin halving.

Merged mining is no new concept. In fact, Satoshi Nakamoto himself invented the concept [1]. This innovative approach to consensus allows PoW miners to simultaneously validate transactions on multiple blockchains. Anduro utilizes PoW merged mining to revolutionize its consensus, enhancing the ecosystem’s ties to Bitcoin.

So, What is Merged Mining?

Merged mining, also known as Auxiliary Proof-of-Work, enables PoW miners to utilize work done on one blockchain (the "Parent” blockchain) to validate transactions on one or more Auxiliary blockchains [2] – in this case, Anduro sidechains. The key to merged mining lies in the relationship between these chains, where the Auxiliary chain trusts the work performed on the Parent blockchain as if it were its own. In Anduro’s case, the Anduro sidechains trust Bitcoin as its Parent blockchain– the most secure and highly audited blockchain.

To participate in merged mining, all involved cryptocurrencies need to share the same algorithm. Bitcoin, acting as the Parent blockchain, employs SHA-256 [3]. Anduro's sidechains, utilizing Bitcoin-denominated native assets, also leverage the SHA-256 algorithm. The process involves assembling transaction sets for both Bitcoin and the Anduro sidechains and inserting the hash of the sidechains’ block header into the coinbase transaction of Bitcoin’s PoW. If the miner successfully solves the block at the difficulty level of either or both chains, the completed PoW is submitted to the respective blockchain(s). This integration allows for efficient validation of transactions across multiple blockchains.

Benefits of Merged Mining for Anduro’s Chains

Anduro sidechains are intended to be as close to Bitcoin-native as possible. Merged mining as part of the consensus mechanism reinforces this natively-Bitcoin ideal. Anduro sidechains also have Bitcoin-pegged native assets, meaning Bitcoin miners could earn rewards denominated in Bitcoin. Bitcoin miners simultaneously have the opportunity to create blocks for Anduro sidechains and Bitcoin making the security of PoW embedded at the center of Anduro chains.

Anduro’s consensus mechanism is a hybrid of Bitcoin SHA-256 merged mining and strong federation consensus governed by the Anduro collective.  By employing the robust security of the Bitcoin network as the Parent blockchain, Anduro’s hybrid merged mining leverages the security of the Bitcoin protocol. The hybrid consensus mechanism creates space for a significant reduction of the risk of attack and, by paying the Bitcoin miners incremental fee revenue, it also fosters enhanced network security. Bitcoin miners that implement merged mining could get upside from all Anduro sidechains at once.  This would allow the Anduro network to adapt and expand to ecosystem demands all the while enhancing mining revenues.  

Looking Ahead: Anduro Hybrid Merged Mining

By harnessing the power of merged mining, Anduro not only fosters enhanced security and efficiency but also cements its position as a Bitcoin-native blockchain platform. The commitment to merged mining underscores its dedication to advancing Bitcoin’s utility with the intent of driving sustainable growth. Anduro could revolutionize the way transactions are validated, assets are transferred, and value is exchanged, ushering in a new era of decentralized finance and innovation with bitcoin!


[1] “BitDNS in the World of Satoshi” [online]. Available: https://bitcointalk.org/index.php?topic=6197.0. Date accessed: 2024-04-18.

[2] “Merge Mining Introduction” [online]. Available: https://tlu.tarilabs.com/mining/MergedMiningIntroduction. Date accessed: 2024-04-18.

[3] “Merged Mining” [online]. Available:  https://academy.binance.com/en/glossary/merged-mining. Date accessed: 2024-04-18.

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