What is Dogecoin?
Dogecoin is an open-source cryptocurrency built on blockchain technology that allows users to send payments quickly and inexpensively between peers in a decentralised fashion. The Dogecoin network's native cryptocurrency is called DOGE.
Dogecoin's mascot is a Shiba Inu, a Japanese breed of dog that first gained notoriety by appearing in many internet memes. Consequently, the cryptocurrency Dogecoin is referred to as a meme coin, a joke-based cryptocurrency that emerged from online memes.
On May 8, 2021, DOGE reached an all-time high market worth around US$90 billion at a price of $0.70. Since its launch in 2013, DOGE has increased by nearly 141,000%, briefly ranking it among the top cryptocurrencies in the world by market cap.
The Dogecoin blockchain network uses a proof-of-work (PoW) consensus mechanism, even though Scrypt technology powers its mining process. Consequently, mining DOGE coins is far cheaper, quicker, and uses less energy than mining Bitcoin.
Miners must solve challenging mathematical puzzles to validate transactions and add new blocks to the Dogecoin network thanks to the PoW consensus algorithm. New DOGE coin is created during the process, and as payment for their work, they are given a share of the cryptocurrency.
Creating a new block in the Dogecoin blockchain takes just about one minute, one-tenth the time taken on the Bitcoin network. DOGE can offer lower transaction fees than the top coin by market cap, because mining takes less computer power and complexity.
DOGE coin was created as a joke as a fork from the Litecoin blockchain network.
A few weeks after Dogecoin Core version 1.14.6 hit the market, Dogecoin Core creator Michi Lumin, announced the creation of Libdogecoin, a C-library of the network's building components,
Developers might create Dogecoin-compliant products with Libdogecoin "without worrying about the underlying mechanics of the crypto functions." This implies that users with less technological expertise can easily design goods that adhere to Dogecoin requirements.
The update won't offer a "runnable" node facility, as it is a pure library. Libdogecoin, on the other hand, will support various languages, such as Python, Node.js, and Ruby.
What makes Dogecoin unique?
Dogecoin can be used as payment for products and services in e-commerce. It is also one of the most widely used digital currencies for "tipping" other internet users who produce or distribute quality content. You can consider it a like or up vote with real value that can be applied across the internet.
Here’s a list of some companies that currently accept Dogecoin payments:
- AMC Theaters
- Dallas Mavericks
Who is behind Dogecoin?
Jackson Palmer, a co-founder of the DOGE meme coin, tweeted on November 27, 2013, that he would be willing to develop a new cryptocurrency if anyone was interested. Billy Markus reached out and collaborated to build Dogecoin, which they released on December 6, 2013.
In 2021, Tesla founder and billionaire Elon Musk publicly endorsed the coin. DOGE swiftly built a strong online community and eventually attracted mainstream notice.
Early in 2022, Ethereum co-founder Vitalik Buterin said he was helping Dogecoin switch from its current proof-of-work (PoW) crypto consensus system to a proof-of-stake (PoS) one in an effort to reduce its energy consumption and speed up the transaction.