What is Dogecoin and how is it different from Bitcoin?
Dogecoin is a peer-to-peer and open source cryptocurrency. This coin was made as altcoin and a behavioral pattern coin and initially only for entertainment. Dogecoin was invented in December 2013 and has the image of a Shiba Inu dog as its logo. It may be safe to say that this digital currency may have seemed like a joke at first, but it turned out that now we have to call Dogecoin one of the most popular digital currencies.
Its underlying technology is derived from Litecoin, and one of the remarkable features of this cryptographic algorithm is its low input price and unlimited supply. Dogecoin was launched as a “fun” version of Bitcoin with the Shibu Inu (Japanese dog) logo.
Although Dogecoin has never been as successful as Bitcoin and Ethereum, the cryptocurrency quickly gained its own fans and users. The non-payment currency jumped 300 percent in just 72 hours from its inception – (from $0.00026 to $0.00095). Of course, Reddit users played a big part in this and should not be ignored.
Although Dogecoin started out as a joke, but since then Peruvian fans have gained a lot of pills. At the end of 2017, the company was present in the formation of a large cryptocurrency bubble, which significantly increased the value of many coins. But after the bubble burst in 2018, Dogecoin lost a lot of its previous value and price, but still has fans who buy and sell this digital currency.
Users can buy and sell Dogecoin at digital currency exchanges. They can also store their Dogecoin in an exchange or Dogecoin wallet.
Initially, Jackson Palmer, product manager at Adobe Inc. in Sydney, Australia, created Dogecoin in 2013 as a cryptocurrency to ridicule other digital currencies and criticize people’s addiction to them. His early tweets about his encrypted new venture soon became popular. This led him to buy the dogecoin.com domain after receiving a lot of significant positive feedback on various social networks, especially Twitter.
In Portland, Oregon, meanwhile, Billy Marcus, an IBM software developer who wanted to create his own digital currency but had a hard time implementing his ideas and efforts. Having heard about Dogecoin’s fame, he found it a good opportunity to make his dream come true. Marcus contacted Palmer for permission to build real Dogecoin support software, and this paved the way for their collaboration in the development of this digital currency.
Marcus based the Dogecoin code on Luckycoin, which itself was derived from Litecoin and initially used random rewards to mine blocks. (Although in March 2014, it changed to a fixed bonus.)
Dogecoin and Bitcoin Differences
Palmer and Marcus launched the coin on December 6, 2013. Two weeks later, on December 19, its value jumped 300%.
Dogecoin uses password-based encryption technology, like other cryptocurrencies such as Litecoin and Luckycoin. This makes it different from Bitcoin, which uses SHA-256 encryption.
Dogecoin is an “inflation coin”, while cryptocurrencies such as bitcoin are non-inflationary because there is a ceiling on the number of coins created. Every four years, the amount of bitcoins issued through mining bonuses is halved and the inflation rate is halved along with it until all the coins are released.
Interestingly, Elon Musk, who put Dogecoin at the forefront of the world’s hot news, has been a fan of Bitcoin. “Bitcoin is a good thing,” the 49-year-old entrepreneur recently tweeted. He also switched his bio Twitter to “#Bitcoin” and said he was “late for a party” in support of cryptocurrency. This development brought Bitcoin to more than $38,000.
Shortly after supporting Bitcoin, Elon Musk moved to Dogecoin. He first tweeted “Doge” and then said, “Dogecoin is the cryptocurrency of the people.” This led to a more than 50% increase in Dogecoin cryptocurrency, making it the headline of the leading media. Tesla and SpaceX CEO Musk tweeted about Dogecoin again on Monday. This time, the Dogecoin coin set a new record. In fact, Elon Musk’s tweets acted as a launching pad for this digital currency and seem to continue to drive its growth and development.
How to buy and sell Dogecoin?
Just like other cryptocurrencies, Dogecoin can be purchased through any wallet or online cryptocurrency platform. There is also a dedicated Dogecoin wallet that can be accessed via smartphone or desktop. What makes this digital currency so popular is the very low transaction fee and the high and remarkable transaction speed, as well as the very simple and smooth platform of these cryptocurrencies.
People use Dogecoin for a variety of purposes, including rewards, purchases or sales, financial transfers, and exchanges.
Dogecoin mining happens just like what we saw in bitcoin mining. In this mining process, nodes compete to confirm a transaction. In this competition and lottery, the desired code must be guessed and added to the transaction block. In fact, existing blockchain databases are categorized as blocks. This lottery happens once every minute and with this account, part of the transactions will be confirmed every minute. In this way, it can be said that the time required to complete Dogecoin transactions is much less than what we need to confirm Bitcoin transactions, which makes Dogecoin a simpler and smoother digital currency.
If you are interested in the world of digital currencies, it will probably be very interesting for you to know more about Dogecoin. How active are you in the world of cryptocurrencies, and what are the benefits of trading on this basis so far?