652
views

The Beginner’s Guide to Dogecoin

Dogecoin is popularly known by its mascot: Shiba Inu, known in most social communities across the internet. It was developed based on an already existing coin, called Luckycoin but had some slight modifications along the line to fulfill its purpose. Dogecoin also uses Scrypt Technology in its proof of work protocol, making it a derivative of Litecoin.

There were many perceptions surrounding cryptocurrencies, and one of them was that it was meant purposely for the elite who are technically inclined to use them. Dogecoin was launched on December 8, 2013. However, its developers Billy Markus and Jackson Palmer had a different perception. They wanted to create something that everybody could use on the internet for fun, not knowing this idea would turn into something else along the line.

Dogecoin in a Nutshell

  • It Is a decentralized cryptocurrency developed purposely to reward content creators for creativity.
  • People also use it as a tip to build its community and engage its members in community activities.
  • It used Scrypt Technology in its Proof of Work protocol, making it a derivative of Litecoin and had some features similar to Luckycoin.
  • Billy Markus and Palmer Jackson pioneered its development.
  • It has an infinite supply.

What is Dogecoin

Dogecoin is one of the most popular cryptocurrencies used in tipping community members across various social platforms on the internet. It operates quite similar to Bitcoin, Litecoin, and other major coins in the industry, as a peer-to-peer decentralized digital currency to enhance the security, speed, and scalability of transactions. A slight modification in its coin supply and its mode of circulation was different from its parent coin.

Dogecoin has no limited supply, and also the release of new coins as a result of mining takes a minute, unlike the two minutes required for Litecoin. While many cryptocurrencies were mimicking Bitcoin in terms of development, Dogecoin became a derivative of Litecoin as it uses Scrypt Technology in its Proof of Work consensus protocol. Dogecoin began as a joke and a fun cryptocurrency where users on Reddit, Twitter, Imgur could get tipped by coming out with amazing content. Several people got to know about it and started tweeting about it with several memes along the line. This got the attention of the crypto space, and during the bull run of bitcoin, it also rallied along and has occupied a slot among the top 100 coins in this industry.

A Brief History of Dogecoin

It all started as a game on the internet when Billy Markus, a programmer, wanted to develop a cryptocurrency that could be used by the masses instead of having a limited amount of coins like Bitcoin, Litecoin which was only accessible to the very few in the world. The process involved in getting cryptocurrencies from either exchange or over the counter platforms can put any crypto starter off this idea. Palmer took advantage of social media platforms’ worldwide use and decided to create a coin that could tip users for making quality content.

Inspired by this intention, a student from Front Range Community College reached out to Jackson Palmer, a marketer with Adobe Systems in Sydney, checking if he could help turn this brilliant idea into a reality. Several people joined in the request until Palmer decided to give it a look. He was impressed with the idea and decided to purchase dogecoin.com.

Billy reached out to Palmer in an Internet Relay chat room and, after a few discussions, decided to build the most popular cryptocurrency tip on social media. Dogecoin’s release due to mining was developed quite similar to Luckycoin, an already existing cryptocurrency at that time. The block rewards for mining on the Dogecoin’s network were randomized and a total coin supply of 100 billion, but this was changed later on, as rewards were fixed and Doge has an infinite supply.

Getting towards the end of 2013, Dogecoin, together with many altcoins, rose high in price across the crypto markets. DOGE rose over 300%, leaving many holders happy with their profits, but this was a flash in the pan as the price plunged again by 80% price reduction. The fear, doubts, and uncertainties spread by governments about major cryptocurrencies also descended on DOGE, as it was making waves across social media outlets.

The Reserve Bank of India resounded the huge risks involved in using dogecoin and other cryptocurrencies, taking into account some of the crypto sphere’s historical hacks. Unfortunately, the Bank of India played the role of a seer this time around, as there was a major hack just the day after they announced an online dogecoin wallet, which led to the loss of about $12,000 US dollars. The strong and ever-growing Dogecoin Community made several contributions to refund users who lost their funds. Dogecoin, led by its team, has engaged in several donations across the world. Unfortunately, Jackson Palmer made a public declaration of taking an indefinite leave from cryptocurrency and its activities.

This, in a way, affected the solidarity among some community members, as some decided to leave. Whatever the situation, some members are still loyal to Dogecoin’s course and have the cryptocurrency still trending.

How Dogecoin Mining works

Like any other PoW blockchain network, the mining of DOGE is when miners secure the network and add new transactions across the existing blockchain. The DOGE blockchain is proof of the work network, but it uses Scrypt Technology instead of SHA 256 as in Bitcoin. Miners across the network do a non-stop job of verifying transactions that are broadcast onto the network. Once more than half of the nodes online agree with any transaction void of any double-spent, it is added unto the network. Miners get incentivized with 10000 $DOGE for every block they mine, which is approximately every minute. Below is an image showing the Dogecoin Blockchain and Block schedule:

doge coin block reward

After mining, block rewards were random until March 12, 2014, where an update to the Dogecoin wallet client was released. This update also came along with a security feature that made Dogecoin unique. DigiShield, as its name was supposedly designed to secure the Dogecoin network. It introduced a difficulty algorithm that made it non-profitable for miners to join as pools and mine dogecoins. This security feature provides extra security against the chances of a 51% attack on the network, as witnessed in Bitcoin’s early days.

How to buy Dogecoin

Cryptocurrency exchanges are the number one spot to purchase Dogecoins for any crypto enthusiasts, while crypto starters can resort to the use of over-the-counter platforms, such as Coinbase (currently not supported by them). Others can also use Atomic Swap Technology embedded in some cryptocurrency wallets and brilliantly purchase these coins.

I would never advise buying any cryptocurrency from escrow groups, even though they are very reputable ones in this industry. The very best and minimal risk is buying from cryptocurrency exchanges, and this link should take you to the various exchanges where you can purchase dogecoin.

Where to store Dogecoin

Most of the mobile wallets, as well as hardware, support dogecoin. You can download any of the wallets below for the safety of your dogecoins:

Coinomi

Ellipal

How much is Dogecoin worth

Dogecoin began with an initial price of about $0.000570. News about it spread like wildfire till it attained its all-time highest price of $0.018773 on Jan 07, 2018, but had already recorded an all-time low price of $0.000085 on May 07, 2015. There is about 124 billion DOGE in circulation, and this supply is never going to be capped. At the time of writing, one DOGE was worth $0.0.00200.

The Benefits of using Dogecoin

Using this cryptocurrency to make payments is way faster than some of the popular cryptocurrencies and more user-friendly than them. For those interested in building and establishing a community, using dogecoins as a tip to enhance community participation is one of the ways to go.

Dogecoins have made several huge donations, such as building wells in Tana Valley in Kenya from a 35 000 donation.

Final Thoughts

Bitcoin live price
Btc
Bitcoin
$29.178
price
2.1772%
price change
BUY NOW

I am not too optimistic about this project, neither am I calling for its downfall at any point in time – but the development of this project after its launch has been staggering for half a decade. There have not been any major updates nor partnership aimed to bring other use cases, aside from being used to engage community members on social platforms.

Stay up to date with our latest articles

More posts

What is Tornado Cash, and How Does It Work?

Decentralized and non-custodial, Tornado Cash is an Ethereum-based solution for privacy and anonymity. Severing the on-chain link between those who send and receive coins enhances transaction anonymity.  This guide will provide our readers with more insight into Tornado Cash. We will start with a general introduction and move deeper into how Tornado Cash works. We will also add a list of pros and cons to this system for the reader's benefit. Understanding Tornado Cash Decentralized protocols such as Tornado Cash…

How Can Crypto Trading Bots Help You Manage Your Investments?

Bots are computer programs designed to carry out specific activities automatically. They operate with the least amount of human input possible.  Crypto trading bots are automated programs that trade a single coin or a portfolio of cryptocurrencies. They trade on one or more exchanges on behalf of the owner or user.  Cryptocurrency bots can automate trading tactics to increase portfolio profits. Today, we'll take a closer look at this ever-expanding technology.  A Simple Way to See Crypto Trading Bots Artificial…

Can You Really Protect Your Crypto Investments Against Whales?

It is only natural that the price of BTC changes following whales' transactions. Because altcoins have smaller market capitalizations, this effect is even more pronounced on their prices. The ways whales manage to manipulate the market are inventive and can lead to heavy losses for small traders. In our guide, we look into the matter and reflect on how to protect a wallet against whales. Understanding the Concept of Whales The term "crypto whale" refers to a person or organization…

What Are Fractionalized NFTs?

Most people who use the internet regularly, whether for business or pleasure, are familiar with NFTs. Everyone in the crypto/blockchain community looks at these "Non-Fungible Tokens” with interest.  The only problem is that NFTs are becoming extremely popular and too costly to own.  In this context, Fractional NFTs, or F-NFTs, have entered the market to attract new investors. Imagine dividing a single NFT into smaller parts and making it available for purchase. This concept is the principle governing the growing…

Diluted Market Cap – A Beginners’ Guide

The value of a cryptocurrency is difficult to predict, especially if we are dealing with a new token. If you're looking to invest in cryptocurrency, measures like the fully diluted market cap can guide your choices.  The term "fully diluted market cap” will represent the core of today’s guide. We'll begin by defining the sector's market capitalization before moving on to more advanced notions. Market Cap in the Crypto Industry The total worth of an asset now in circulation corresponds…

Top Crypto Marketing Agencies to Promote Your Cryptocurrency Project in 2022

Nowadays, launching a crypto project can be a daunting task for most developers, especially considering the competition. This report claims that the industry amasses over 18,000 cryptocurrencies as of March 2022. Whether you focus on NFTs, DeFi, or any other crypto-related activity, you will have to face stiff competition. Fortunately, you can gain a competitive advantage over your peers with the help of crypto marketing agencies. These services cover all the promotional aspects your project needs to get into the…

The Difference Between Capped and Uncapped ICOs

Some ICOs decide to set a cap on how many coins investors can buy. However, some people choose to offer unlimited coins at the sale. Different teams can follow different strategies to obtain success in this growing market. Today, our guide aims to make a clear distinction between capped and uncapped ICOs. Understanding the Concept of ICOs An ICO (“Initial Coin Offering”) is a way to launch a new cryptocurrency. ICOs are a way to raise money for a project…

Is It Possible to Spot a Fake NFT?

Blockchain technology should have made life simpler for digital artists selling unique tokens of ownership to other people. A public ledger can give buyers a record of who owns a piece of art in perpetuity. Blockchain gave some artists a new chance to earn money. However, some artists admit that the last year's crypto boom has been a real mess.  Anyone can "mint" a digital asset as an NFT, even if they don't own it. How do you spot a…

Unstoppable Domains – A Beginner’s Guide

Unstoppable Domains are an intriguing and unique new option that is gaining traction in the crypto industry as more people become aware of them. Even though you may be inclined to dismiss them as simply another "crypto craze,” you may not want to be so hasty in your judgment. Whether you have your wallet or just learning about crypto, unstoppable domains have some unique advantages that you might consider utilizing for your website. This post will go over all you…

Understanding How Ripple’s Interledger Protocol Works

Payment networks are now fragmented and disjointed. Transferring money within a nation or between accounts on the same system or ledger is quite simple. The same goes for transferring money between accounts on a different network or ledger. In most cases, however, transmitting data from one ledger to another is unfeasible. Even in places where connections are available, they are often manual, sluggish, or costly. Ripple’s Interledger Protocol allows the routing of payments across multiple digital asset ledgers. Meanwhile, it protects both…