Dogecoin (DOGE)

Dogecoin

NamePrice
Dogecoin (DOGE)
$0.253275

What is Dogecoin?

Definition

Dogecoin is a cryptocurrency, which is basically a decentralized digital currency. It came into existence in 2013 to be a “fun” currency that could reach more people. It reached this goal by using the image of the Shiba Inu dog from the “Doge” Internet meme as its logo.

Dogecoin works like other cryptocurrencies, it has a blockchain and mining system, but it was created as a meme without any specific purpose. One of the differences between Dogecoin and Bitcoin is that Dogecoin has no hard limit on the number of coins that can be mined. To get started mining Dogecoins, you need to get a wallet and some coins.

You can buy and sell Dogecoins for fiat currency, or you can also trade them on cryptocurrency exchanges. You can use Dogecoin to buy goods from different stores, but there are not many companies that accept this coin as a form of payment.

The one thing that makes Dogecoin different from all the other cryptocurrencies is its community. They keep supporting the coin, and they made it what it is at this moment. No matter if you like or hate Dogecoin, you cannot ignore its community and its efforts to make this coin a success story.

History

The creator of this coin, Billy Markus used an existing cryptocurrency named Luckycoin as the basis for Dogecoin’s initial codebase. However, unlike Luckycoin that uses random blocks, Dogecoin has a static block reward of 10,000 coins.

One of the fundamental features that set Dogecoin apart is its fixed block rewards of 10,000 coins per block. Unlike other cryptocurrencies where new coins are generated with each transaction, there are no limits for mining coins in the blockchain of Dogecoin.

Dogecoin quickly developed its own online community and reached a capitalization of US$60 million in January 2014. The Dogecoin community on Reddit decided to donate more than $30,000 worth of Dogecoin to help finance the Jamaican bobsled team’s trip to the Sochi Winter Olympics.

On February 16, 2014, Dogecoin suffered a 51% attack on its network. This caused a fork in the blockchain since other mining pools were following the wrong chain at that time. After this event, many altcoins started facing rapid declines in hash rate which ultimately led to a huge rise in Coinmarketcap’s listed altcoins’ price.

In April 2014, the Dogecoin community raised funds to sponsor NASCAR driver Josh Wise. Wise ran with a Dogecoin/Reddit-sponsored paint scheme at Aaron’s 499 at Talladega Superspeedway.

Use Cases

Dogecoin might have started as a joke, but it is currently worth tens of billions. Many people believe that Dogecoin has no future, but this coin has been holding its own for quite some time now. Right now, more than 100 billion Dogecoins have been mined, and the daily volume is in millions.

  • Dogecoin may be used in online casinos, but there are no Dogecoin casino sites that accept it at the moment. However, you can always sell your Dogecoins for Bitcoin and then buy them back when you need them for playing games in casinos that only accept Bitcoin deposits.
  • Another possible use of Dogecoin is through its tip bot on Reddit. The tip bot allows people to quickly support other users on Reddit with a simple function.

Technical

Dogecoin looks like Bitcoin on the outside, but its inner workings are quite different from each other. It uses a Scrypt-based algorithm instead of Bitcoin’s SHA-256. There were some issues with Dogecoin in the past such as 51% attacks (when someone got more than 50% of the network hash rate which allowed him to double-spend Dogecoins), but they have been fixed.

The Scrypt-based algorithm of Dogecoin is one of the two main types of proof-of-work algorithms. It was created by Colin Percival and is a memory-hard key derivation function that was specifically designed with the aim of being safe for ordinary users on cost-sensitive devices.

The Dogecoin network was originally intended to produce 100 billion Dogecoins, but later, it was announced that the Dogecoin would produce infinite coins – or rather, had no limit at all.

The creator of this coin, Billy Markus used an existing cryptocurrency named Luckycoin as the basis for Dogecoin’s initial codebase. However, unlike Luckycoin that uses random blocks, Dogecoin has a static block reward of 10,000 coins.

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