Not all cryptocurrencies initially meant a serious project. This fully applies to Dogecoin. The Dogecoin cryptocurrency was perceived by many as a joke (the coin is named after the Internet meme Doge), but there is some truth in every joke. In our case, Dogecoin not only “took root” in the cryptocurrency community, but also demonstrates good results.
Technologies underlying dogecoin
Dogecoin cryptocurrency is based on the same algorithm as Litecoin, but with some differences. First, a new block appears within one minute, which is 2.5 times faster than Litecoin. This is also the reason for the higher transaction speed. Online confirmation takes about 6 minutes. For comparison, transactions on the bitcoin network can wait for confirmation for an hour or more (in case the commission is insufficient). For Litecoin, this indicator is approximately 15 minutes. Secondly, the difficulty of mining is recalculated every 240 blocks.
The cryptocurrency is based on the Scrypt algorithm. This approach allowed developers to protect the system from mining using ASIC hardware. Since 2014, interest in Dogocoin has grown significantly. ASICs appeared that work with the Scrypt algorithm. For miners using a CPU or graphics card, the mining process has become more complicated. The Proof of Work consensus protocol helps protect the network from attacks and spam. Using this algorithm, the system checks the execution of the calculations by the miner.
Initially, the developers decided to limit the number of coins in circulation at the level of 100 billion. But then the limit was lifted. The number of coins at the time of this writing exceeds 117 billion. The project does not solve any global issues or problems, since it was created, like Litecoin, as an alternative.
However, the coin has its own advantages:
- High transaction speed;
- Small commission (its size is not related to the volume of the transaction);
- No scalability problems for the entire network;
- Listing on the largest cryptocurrency exchanges;
- High speed of creating new blocks.
This makes the cryptocurrency very popular among the investors.
Dogecoin Team and Coin Interesting Facts
The founders of the cryptocurrency are Billy Markus, a programmer at IBM, and Jackson Palmer, a product manager at Adobe. The latter left the project in 2015. Other programmers have joined Dogecoin. The Dogecoin cryptocurrency is interesting in that interesting fundraising projects are associated with it:
ü the Dogecoin Foundation and the Dogecoin community were able to raise 50,000 USD in 2014 for the Jamaican bobsled team with the aim of their trip to the Olympic Games. Already on the second day after the launch of the fundraiser, we managed to get coins in the amount equivalent to 36,000 USD. Thanks to this, the Dogecoin rate in relation to Bitcoin increased by 50%, it can be seen in doge to btc price;
ü In collaboration with Charity: Water, the Dogikoin Foundation has begun raising funds to build a well in the Tana River Basin, Kenya. They managed to get 40,000,000 million coins (equivalent to $ 30,000). The campaign was successful. 4,000 investors participated, including one who donated 14,000,000 Dogecoin (equivalent to $ 11,000);
ü In addition, for some time, Vancouver hosted the world's first dogecoin ATM. The device has become something of an advertisement for the CoinFest festival taking place in the city. Attempts to use cryptocurrency have been made in home sales, as well as in poker and pornography. Katia Eirin and Benet Wong are asking for donations for their Dogecoin weather forecast website.
We can make a conclusion that these advantages and useful facts are the reasons to buy DOGE.