Blockchain Comparison: Key difference between DOGE and Bitcoin
July 22, 2022 7:02 AM
Dogecoin is regarded as a Bitcoin alternative currency. The programming language used by Bitcoin and Dogecoin is the same. It is a programming language built on stacks that instructs the Bitcoin software on how to carry out transactions.
Even if the following cryptocurrencies have developed their blockchains with unique characteristics, Bitcoin was the first cryptocurrency and the first to employ the blockchain technology that we have grown accustomed to.
Dogecoin was created as a fork of Litecoin utilizing its consensus algorithm, albeit having its blockchain currently. BTC and DOGE both employ Proof-of-Work (PoW), however, Dogecoin is undergoing a significant transition.
Vitalik Buterin, the creator of Ethereum, is promoting the conversion of Dogecoin to Proof-of-Stake (PoS), according to recent reports.
Being a memecoin, DOGE was primarily developed as a humorous token, used to thank supporters of the project and community in general, particularly on social media. This contributed to the cryptocurrency's rising prominence. A new payment system and a new method of storing money were the driving forces behind the creation of Bitcoin.
The mining algorithm used by DOGE Blockchain is distinct from that of Bitcoin. Because of this, mining DOGE is quicker and simpler. DOGE employs the Scrypt algorithm, whereas Bitcoin uses the SHA-256 method.
There is no doubt that Dogecoin and Bitcoin have many similar technological features. They are not alike, though. The two coins are not identical copies due to a few differences. The creators of Dogecoin were able to include their sense of humor into the fundamental coding of the coin. In particular, they altered many of the vocabulary phrases spoken within the ecosystem. Dogecoin miners, for instance, are referred to as "diggers."
Compared to BTC transactions, DOGE blockchain transactions are processed faster and cheaply. While the BTC blockchain processes a block every 10 minutes, the DOGE blockchain generates a new block of transactions every minute.
While this could increase the appeal of DOGE as a medium of trade, it detracts from its usefulness as a store of wealth. A bigger quantity of new Dogecoins hitting the market often results in lower prices since DOGE miners earn 10 times the block rewards as compared to Bitcoin miners.
Dogecoin was first designed with a 100 billion hard supply capitalization, Doge creators Markus and Palmer eventually removed the hard supply capitalization to prevent users from hoarding and viewing it as an investment. Since there’s a lack of scarcity which should lead to a lack of value in DOGE following their main goal as a joke.
Bitcoin on the other hand would become more scarce over time due to its limited supply of 21 million, it should hypothetically rise in value as it becomes less available to investors. Dogecoin’s lack of a supply capitalization alongside its 5 billion yearly issuance ensures the asset will never become too valuable as they would be high supply and low demands.