Updated: Dec 20, 2019
Dogecoin is a fun version of regular cryptocurrencies, which is rapidly growing and being accepted by many. It is an open-source, decentralized peer-to-peer digital currency, which is thought to be favored by Shiba Inus worldwide. Shiba Inu is a breed of Japanese dogs and represents the DOGE mascot. It was popularized online as a meme. Dogecoin works a lot like any other cryptocurrency, allowing users to send and receive online payments, and also as a mode of digital currency accepted by vendors worldwide.
This guide will explain the purpose behind Dogecoin, its creators, how it works and various applications.
What Is Dogecoin Designed For?
The idea behind DOGE was to create a fun cryptocurrency in a world, where the technology was buried deep within the interests of only techies and finance geeks. The developers wanted to create a digital currency in the crypto space, free from controversies surrounding all other cryptocurrencies.
The coin was created on the same principles as Bitcoin, albeit, with a friendlier logo. DOGE became highly popular, and things got pretty serious when the community lapped up the advertising and the comical Shiba Inu dog memes. Soon, what started as an attempt to make cryptocurrency fun became a coin with celebrity status.
Who Is the Team Behind Dogecoin?
Dogecoin was launched for the world in 2013, by Billy Markus, Jackson Palmer, and “Shibetoshi Nakamoto”. Shibetoshi Nakamoto is an obvious dig on the name of the notable and anonymous Bitcoin creator - Satoshi Nakamoto.
Jackson Palmer soon left the DOGE scene, leaving behind a developing team consisting of names such as Ross Nicoll, Max Keller and Patrick Lodder.
In an April 2019 gag, Tesla CEO Elon Musk was labeled as Dogecoin’s new CEO, which helped bring DOGE back into the public eye. Musk played along and even changed his Twitter bio to feature “CEO of Dogecoin” for a whole day. The next day he changed the bio to read “retired CEO of Dogecoin.”
How Does Dogecoin Work?
DOGE is simply internet money, using a decentralized platform to trade tokens and exchange value. It is based on the framework of another cryptocurrency called Luckycoin. It runs on the Scrypt Proof-of-Work protocol, which is originally from Litecoin. This means that DOGE cannot be mined by ASIC’s, instead requires computers. This also has the added advantage of making DOGE mining less energy-intensive.
Dogecoin’s block time is 1 minute as opposed to the original Litecoin’s time of 2.5. This allows for faster transactions and confirmation. It takes approximately 2 to 5 minutes for a DOGE transaction to be validated and confirmed on the blockchain.
There are over 50 exchanges globally that allow 250 pairings of Dogecoin. DOGE can be purchased by using coins, like Bitcoin and Ethereum. Popular exchanges include HitBTC, Cryptopia, and Bittrex.
What are Current and Future Applications of Dogecoin?
The cryptocurrency has become an accepted way of tipping content creators on social media, as a token of appreciation. It is also used extensively as a currency for smaller, lower-valued transactions in general.
Sites like Reddit allow users to tip others by using the Dogetipbot or any other similar service.
Dogecoin has been used for various purposes since its initial launch in 2013. The community frequently uses the crypto coin to raise funds for charitable causes. Notable fund-raisers include NASCAR and 2014 Winter Olympics. It was used to raise $25,000, to help the Jamaican bobsleigh team participate in the Sochi Winter Olympics.
On the consumer front, Dogecoin charges significantly lesser than the other cryptocurrencies for transactions, like spending or remittance. This is because of the significantly low value of individual tokens.
The future of this currency looks very encouraging as the coin is adored globally, which led to it having the highest production rate during its initial phase. DOGE is expected to gain greater worth in the coming years. However, it is important to understand that popularity is largely user-based.
The Dogecoin Foundation, which is responsible for overseeing the development of the Dogecoin network, is largely idle and inactive. The group posted only thrice in the last year on social media. Its Reddit profile dates the last post back to 2016.
The important thing about DOGE is that it is the only currency, which started as a joke in the crypto universe and due to the adulation of people worldwide, gained the status of being a serious and legit digital currency. Dogecoin may not make it to the top 5 cryptocurrencies in 2019, but it does currently stand as the 20th largest cryptocurrency, with a market cap of over $640 million.