Dogecoin (DOGE) is an open-source peer-to-peer cryptocurrency that is based on the popular “Doge” internet meme. It is considered an altcoin and an almost sarcastic meme coin that features Shiba Inu on its logo.
While it was created as a joke, the Dogecoin blockchain has proved to have merit. Dogecoin is traded and used as a tipping currency for social media content by its online community. It is notable for its low price and unlimited supply.
Dogecoin was founded in 2013 by Billy Markus from Portland, Oregon, and Jackson Palmer from Sidney, Australia. The developers of this altcoin envisioned it as a fun, light-hearted digital currency that would appeal to a larger audience beyond Bitcoin audience. The popularity of Dogecoin has grown in the recent past with Tesla CEO Elon Musk frequently posting tweets on social media claiming that Dogecoin is his favorite digital coin.
Dogecoin is a derivative of Luckycoin, which is forked from Litecoin. It uses a scrypt algorithm to keep all the transactions secure, which makes it significantly different from Bitcoin. Dogecoin uses Auxilliary Proof of Works (AuxPoW) and has been merged-mined with Litecoin. The altcoin has a one-minute block time and uncapped supply, meaning there is no limit to the number of Dogecoin that can be supplied. Users can either mine Dogecoin individually or by joining mining pools. The digital currency can be mined on Windows, Mac, or Linux, and with a GPU.
Dogecoin can be used for rewards, payments, and purchases. For example, Dogecoin online community uses the coin to tip or reward people who create or share quality content on Reddit and Twitter. However, the altcoin is not very effective as a store of value since it has no lifetime cap on the number of coins that may be mined. It is highly inflationary by design.
Dogecoin has had some security challenges in the past. On December 25, 2014, a Dogecoin wallet (Dogewallet) was hacked and 21 million Dogecoin worth $12,000 stolen. However, the Doge community raised $13,000 to pay back the users who lost their funds.
Dogecoin is based on blockchain technology hence nearly impossible to hack. However, it is still at risk of A 51% attack, where more than half of a blockchain comes under the control of one person or group. In such a case, the group could add invalid transactions to the blockchain network.
When Dogecoin first launched, it was launched, it was at risk of a 51% attack, just like any other blockchain-based digital currency. However, when the developers built a merged mining operation with Litecoin in 2014, they protected Dogecoin against this attack. The two currencies can now be mixed, making both networks more secure.
You can buy or sell Dogecoin at any exchange that offers the digital token. You can store it on an exchange or in a Dogecoin wallet. To purchase the digital coin, you need to download a crypto wallet and set up a crypto exchange account. Binance and Kraken are some of the major exchanges where you can trade Dogecoin.
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