Dogecoin is a peer-to-peer digital currency that enables the easy transfer of money online. It is one of the fastest growing cryptocurrencies and is entirely anonymous, decentralized, and secure.
Dogecoin’s popularity is due in part to the fact that it features a likeness of the Shiba Inu dog from the Doge internet meme as its logo. While it initially began as a lighthearted sendup to the meme, its popularity is genuine.
Dogecoin is considered a clone of Bitcoin and Litecoin but with a much higher number of coins and fast transactions speeds. It can also be envisioned as a payment network without the need of central authority as a clearinghouse.
History of Dogecoin
Billy Markus, a programmer based in Portland Oregon and Jack Palmer, based in Australia, are the brains behind Dogecoin. Initial plans were to come up with a cryptocurrency that could have a broader demographic than Bitcoin. The two developers never thought that the cryptocurrency would become famous. Together, they launched Dogecoin in 2013 with the initial plan of producing 100 billion Dogecoin. However, it was later announced that the Dogecoin network would have infinite Dogecoin. Markus derived Dogecoin from the source code of Luckycoin, a Scrypt featuring random block rewards.
During the initial stages after launch, Dogecoin was used as a means for raising money for worthwhile causes. Among other reasons, the coin’s extensive usage for charity and other positive endeavors ended up producing so much good publicity that it has become one of the most widely used cryptocurrencies.
How to Mine Dogecoin
Compared to Bitcoin, the Dogecoin mining industry is less developed. Computers that can be used to mine the digital currency are hard to find, and Dogecoin’s mining process requires vast amounts of time and electricity, even more so than Bitcoin.
Dogecoin, just like Bitcoin and other cryptos, uses Proof-of-Work to verify transactions. For a transaction to go through on the Dogecoin network, a miner has to include it in a block, and the block containing it must be verified. When a transaction has been entered, miners confirm it through the Proof-of-Work process by checking it against previous transactions on the Blockchain.
A new block is created and added to Dogecoin’s existing Blockchain if no double-spend is detected in any of the transactions contained in it. Each new block is sent to all the nodes on the network, which miners use to verify and transmit transactions.
How to Use Dogecoin
Just like other Altcoins, Dogecoin is a spending currency that can be used for various purposes. Its attraction is as a medium of exchange through which value can be transferred anywhere in the world for a fraction of what fiat currencies charge.
Unlike other cryptocurrencies that are struggling with network congestion problems, Dogecoin is much quicker when it comes to transaction speeds. It features a friendly community and relatively high inflation rate. It also serves as a good entryway into cryptocurrencies due to ease of use.
Unlike fiat currencies, Dogecoin is immune to the effects of hyperinflation and eliminates the need for a third party such as a bank and a clearinghouse. Transactions carried out by Dogecoin are irreversible and cannot be traced back to the user.
Dogecoin’s popularity is largely because it is used as a tipping currency for various types of work done online. For instance, Reddit and Twitter users use the digital currency to tip for services like providing streaming, data sharing, or expertise.
Dogecoin’s value has been steadily rising since its inception. However, it is highly unlikely it will ever match the likes of Bitcoin and Ethereum, the top cryptocurrencies that continue to lead the pack and call the shots. Dogecoin’s future value is highly dependent on the fate of these larger players and the continuous adoption and acceptance of cryptocurrencies as a means of legal tender around the world.