What is Dogecoin: A beginners guide to the DOGE ecosystem
By: Timilehin
July 16, 2022 11:04 PM
A peer-to-peer, open-source cryptocurrency is called Dogecoin (DOGE). It is regarded as a meme coin and an alternative cryptocurrency. Dogecoin was introduced in December 2013 and uses a Shiba Inu dog as its logo.
What is Dogecoin?
Like Bitcoin or Ethereum, Dogecoin is a cryptocurrency, albeit it is substantially different from both of these well-known currencies. Dogecoin, which derives its name from a once-famous meme, was developed at least in part as a humorous prank for cryptocurrency fans.
In 2013, Dogecoin (DOGE) was developed as a fun alternative to established cryptocurrencies like Bitcoin. The Shiba Inu symbol and logo are based on a meme to make fun of the crypto community.
Dogecoin is purposely plentiful, with 10,000 new coins being mined every minute, in contrast to Bitcoin, which was intended to be limited.
Although Dogecoin was first intended to be a joke, it soon acquired popularity. By the end of 2017, it was taking part in the cryptocurrency bubble, which considerably increased the value of several currencies.
History of Dogecoin
IBM software developer Billy Markus and Adobe software engineer Jackson Palmer came up with Dogecoin as a joke at first.
Peer-to-peer digital money that might appeal to a wider audience than Bitcoin was what they aimed to build. They also intended to separate it from the contentious past of previous coins.
On December 6, 2013, Palmer and Markus introduced the currency. On Dec. 19, two weeks later, Dogecoin's value increased by 300 percent, possibly as a result of China barring its banks from investing in cryptocurrencies.
The erratic cryptocurrency has increased by more than 4,000 percent in 2021 alone thanks to the backing of a sizable online community that includes Elon Musk, Mark Cuban, and Snoop Dogg. Some analysts predict the price will hit $1 before the year is over.
How does Dogecoin work?
The Dogecoin blockchain has a proof-of-work consensus method, in which miners utilize computers to execute transactions and record them on the blockchain by solving challenging mathematical problems.
The cryptocurrency Dogecoin is based on blockchain technology, which functions similarly to most cryptocurrencies in that it employs a distributed, secure digital ledger to record and add all transactions done on its network. Additionally, the Dogecoin network secures all transactions on its blockchain network using encryption.
Although Dogecoin may be used for transactions and purchases, it is not a reliable cryptocurrency store of value. This is because Dogecoin, a cryptocurrency that is extremely inflationary by design, maybe minted in an endless number of units.
The mathematical calculations and transaction recording are substantially quicker and simpler for DOGE miners. As a result, Dogecoin is better at processing payments. On the Dogecoin blockchain, new blocks are processed and ratified on average in one minute as opposed to an average of ten minutes for Bitcoin. Although this distinction makes miners labor longer and harder for each block reward, it also helps Bitcoin keep and increase in value over time.