What is Dogecoin?
Dogecoin is an Internet meme focused on the famous “Doge” cryptocurrency and has a Shiba Inu on its logo. Dogecoin is simply a clone of Litecoin. Introduced on 6 December 2013 as a “joke currency,” Dogecoin soon established its own online community and in January 2014 hit a capitalization of US$60 million.
Dogecoin has a high initial coin development schedule relative to other cryptocurrencies: by mid-2015, 100 billion coins were in circulation and a further 5,256 billion coins per year afterwards. As of 30 June 2015, it had mined the 100 billionth Dogecoin.
Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, developed Dogecoin. Beyond the main Bitcoin community, all aimed to create a friendly cryptocurrency that would appeal.
Dogecoin is mainly used on Reddit and Twitter as a tipping scheme, where users tip each other to make or post positive material. In organizing charitable events for worthy causes, the community has put together many notable events.
How does Dogecoin work?
Known mostly as a meme, Dogecoin has gained popularity in online activities such as a tipping scheme in which social network participants tip others to provide relevant or notable material.
Online forums such as Reddit and Twitter, where users often share currency-related knowledge, trading in physical, visible objects in exchange for DOGE takes place.
Dogecoin was often used to attempt to sell a house and was used in the fields of pornography and poker.
Dogetipbot was a transaction tool for cryptocurrencies found on common platforms like Reddit and Twitch.
It enabled users to submit Dogecoins via commands via Reddit comments to other users. Since its founder announced bankruptcy, Dogetipbot was discontinued and took offline in May 2017, which left many Dogetipbot users losing their coins deposited in the Dogetipbot wallet.
The implementation of Dogecoin varies in many parameters from Litecoin. The block time for Dogecoin is 1 minute, compared to 2.5 minutes for Litecoin.
Several incidents of using university or employer machines to mine Dogecoin have been identified.
With 100 billion coins in circulation, Dogecoin began its initial coin production plan. Around mid-2015, with an extra 5 billion coins placed into circulation per year afterward, the 100 billionth Dogecoin had been mined. On the overall availability of Dogecoins, there is actually no implemented hard limit.
Initially, Dogecoin had a 100 billion coin supply cap, which would have been much more coins than the top digital currencies allowed.
Nevertheless, Dogecoin designer Jackson Palmer revealed in February 2014 that the cap will be eliminated in an attempt to reduce the inflation rate steadily over time.
What is the history of Dogecoin?
IBM software engineer Billy Markus from Portland, Oregon and Adobe software engineer Jackson Palmer co-founded Dogecoin, which set out to build a decentralized peer-to-peer currency that could hit a larger demographic than Bitcoin. In comparison, they decided to distinguish it from the other coins’ notorious history.
On December 6, 2013, Dogecoin was publicly released and there were over a million visits to Dogecoin.com during the first 30 days.
Palmer was a member of the Adobe Systems Marketing Group in Sydney at the time and is credited with making the concept a reality. Palmer acquired the Dogecoin.com domain and added a splash screen that included the emblem of the coin and the text of Comic Sans dispersed.
After seeing the web, Markus reached out to Palmer, and began efforts to grow the currency.
Centered on current cryptocurrencies, Luckycoin and Litecoin, Markus developed Dogecoin’s protocol that uses scrypt technology in their proof-of-work algorithm.
The usage of scrypt ensures that miners may not use SHA-256 bitcoin mining equipment and must now use dedicated mining FPGA and ASIC computers, which are considered to be more complicated to produce.
Dogecoin soared almost 300 percent in value in 72 hours on December 19, 2013, increasing from $0,00026 to $0,00095.
This rise occurred at a period when China’s decision to bar Chinese banks from participating in the Bitcoin economy was suffering from Bitcoin and several other cryptocurrencies.
Three days later, due to this incident, Dogecoin suffered its first big crash by falling by 80 percent and massive mining pools leveraging the relatively little computational capacity needed at the time to mine Dogecoin.
The first big Dogecoin robbery happened on December 25, 2013, when millions of coins were stolen during a hack on the Dogewallet online cryptocurrency wallet site.
The hacker obtained entry to the filesystem of the platform and changed its send/receive page to send any and all coins to a static address.
This hacking event spiked Dogecoin tweets, rendering it the most reported tweets The Dogecoin group launched a project called “SaveDogemas” to support those who lost funds on Dogewallet after its breach, to help donate coins to those who had robbed them.
About one month back, ample cash was donated to replace all the stolen coins.
Dogecoin’s exchange value briefly approached that of Bitcoin and all other crypto-currencies together in January 2014, but its market capitalization stayed well below that of Bitcoin.
Dogecoin originally had a randomized incentive that was earned for each mining block, but this behavior was later changed to a static block reward in March 2014.
On January 7, 2018, Dogecoin briefly hit a high of $0.017/coin during the cryptocurrency boom from 2017 to early 2018, bringing its overall market capitalization close USD 2 billion.
The Dogecoin price soared in July 2020 after a TikTok movement aimed at bringing the price of the coin to $1.
How do I hold Dogecoin?
You need to open a Dogecoin wallet before you can begin your crypto-currency adventure. You can store and ship Dogecoin by using your Dogecoin wallet.
Some examples of Dogecoin wallets include:
- Online wallet: DogeChain
- Light wallet: MultiDoge
- Android wallet:Dogecoin wallet
- iOS wallet: Dough wallet
