Most people would not believe that an innocent joke could turn into a digital currency with which you can buy and sell real goods. However, that was exactly the case with dogecoin. Something that started off as a joke, slowly began to compete with other cryptocurrencies.
What is dogecoin?
Most cryptocurrency creators advertise them as very serious, groundbreaking projects. With dogecoin, that was not the case. It began as a silly project, not a particularly serious currency.
But what exactly is doge coin? It’s a peer-to-peer currency based on the modified bitcoin protocol. Currencies such as DOGE are in the inflation category, because the number of coins is constantly growing and there is no maximum permitted quantity. Every dogecoin can be divided into 100 mln decimal points. The blocks are mined almost instantly – one per every minute.
When was dogecoin created?
When dogecoin appeared on the market, bitcoin was already very popular, as well as cryptocurrencies in general. Today DOGE stands right next to the most important digital currencies. Dogecoin’s logo is also one of the most recognizable ones out there – thanks to the DOGE meme with the Shiba Inu dog.
When did dogecoin start? And who created dogecoin? It all started in 2013, when software engineers Jackson Palmer (working for Adobe) and Billy Markus (working for IBM) released a new cryptocurrency. The punchline was that it was a luckycoin (which doesn’t exist anymore) hard fork, which in turn was a litecoin (LTC) fork. So, dogecoin was created as a fork of a fork – which immediately earned it the title of a silly coin.
Even today, there is no company or institution representing DOGE. It gained its popularity mainly thanks to its enthusiasts – of whom there are many.
If you’re wondering, how many dogecoins are there – it’s hard to say. The initial dogecoin supply limit was 100 billion coins, but it was lifted rather quickly. Today, dogecoin may be produced practically without limits – every year, there are approximately 5 billion new DOGE coins.
Dogecoin cryptocurrency – technical information
The DOGE network operates on the Scrypt algorithm of the Proof of Work consensus (used to confirm transactions and create new chains of blocks). Dogecoin itself is based on the luckycoin source code – which gives a random reward for every mined block. With time, this system evolved into a fixed reward of 10,000 DOGE. This currency is mined using ASICs. Dogecoin enables you to perform very fast payments. The block confirmation time is less than one minute – while for bitcoin, it’s usually around 10 minutes.
What can you do with your dogecoin supply?
Dogecoin works similarly to bitcoin, although there certainly are some differences, such as the lack of a mining limit for DOGE. What can dogecoin be used for? Here are some examples:
- making small payments;
- Internet tipping;
- investing (making a profit from exchange rate differences);
There is also an active dogecoin gadget (collector’s coins, keychains, etc.) and mascot trade on many different sites. That is just one of the reasons why DOGE owners are somewhat of a community – but more on that later.
Which wallets support DOGE?
It’s best to use renowned, secure digital wallets to store your dogecoins. Here are some of the best ones to use for DOGE:
- MultiDoge – available for PC computers, for operating systems such as Windows, Linux, MacOS;
- Dogecoin Core – also for PC computers, but it’s a more complex wallet which keeps track of your whole dogecoin transactions history;
- Jaxx – a mobile wallet available both for Android and iOS systems;
- Coinomi – a wallet for mobile devices;
- Dogecoin Wallet – for various mobile platforms;
- Coinbase Wallet – another mobile wallet.
Additionally, there are also some hardware wallets, such as Trezor, Ledger or KeepKey.
Where can you trade your dogecoins?
DOGE is currently quite a popular digital currency, available on most cryptocurrency exchanges. Here are some such exchange examples:
- Binance – functioning since 2017, created in the Cayman Islands. Currently one of the largest cryptocurrency exchanges in the world;
- Bittrex – one of the most popular exchanges, with its headquarters in the United States;
- HitBTC – a european exchange which operates since 2013. It’s a very fast and efficient trading platform;
- Gate.io – one of the most popular exchanges in the world, functioning since 2013;
- Kriptomat – quite a young exchange, compared to the others on this list. It was set up in 2018 by Slovenes.
Such cryptocurrency exchanges allow you to easily buy and sell dogecoins.
What is the difference between dogecoin and bitcoin?
Bitcoin is definitely the most popular cryptocurrency in the world. It jump-started the evolution of digital currencies. Bitcoin is the reason why other cryptocurrencies exist. So, how is dogecoin different from bitcoin? First of all, it’s certainly not as popular. However, there is more to it than a popularity contest. Most importantly, dogecoin is not limited in any way. There can be as many dogecoins as necessary, while there can only be 21 million bitcoins. Also, DOGE processes blocks ten times faster than the bitcoin network.
Social initiatives and DOGE
Dogecoin owes much of its reputation to an active community centered around this digital currency. There are many social initiatives connected to DOGE – which certainly is no rule for cryptocurrencies. The DOGE community is well known for its charity projects and activities.
In the early years of the currency’s existence, there have been many donations made on Reddit by its users. They were supporting others financially, using dogecoins. Eventually, there came a time for bigger work. Worthy notations are e.g.: a fundraiser for the Jamaican bobsleigh team in 2014 ($30,000 worth of dogecoins were raised), a fundraiser for a well drilling in Kenya (another $30,000) or a sponsorship for a racecar driver ($50,000).
What is the future of doge coin?
The currency certainly sparks a certain interest. Dogecoin is quite intriguing. It was enough for Elon Musk to tweet that it might be his favourite currency for its rate to drastically rise. Dogecoin is the perfect example that it’s not just large currencies, such as bitcoin, that can interest investors and cryptocurrency users alike.
DOGE is an example of a project which surprised even the creators themselves. An innocent joke had turned into a serious endeavour with a growing popularity. Dogecoin is turning into a must-have currency in any digital wallet.