Project Name: Dogecoin
Project Ticker: DOGE
Website: dogecoin.com
Twitter Account: twitter.com/dogecoin
Whitepaper: Click here for the whitepaper.
What Is Dogecoin?
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency. Inspired by the “doge” meme, which is quite famous on social media, it was launched by Jackson Palmer and Billy Markus in December 2013 to make fun of the cryptocurrency boom of the period. Choosing the famous meme's Shiba Inu dog as its symbol, Dogecoin has promoted itself as a "fun" version of Bitcoin, gaining a loyal community on Reddit and Twitter. Its loyal community and ever-growing popularity have managed to place Dogecoin among the fifty cryptocurrencies with the largest market cap. Its use for donations and various charitable works also contributed to its popularity.
The image of the Shiba Inu dog, the subject of the famous internet joke. This meme usually has some kind of internal monologue written in Comic Sans font in deliberately broken English.
What Does Dogecoin Offer?
Dogecoin is a cryptocurrency you can trade or hold. Since its release, it has been widely used to tip on platforms such as Twitter and Reddit, and over time it has become one of the most common methods for tipping internet creators. With transaction fees as low as $0.01, Dogecoin has been a cheap alternative to its competitors, especially at the beginning. Dogecoin's transaction speed and ease of use also increased its popularity at launch.
The creators of Dogecoin have chosen a fun and simple-looking way to ensure that people who are not familiar with the world of Bitcoin and cryptocurrencies do not shy away from the complex appearance of the ecosystem. For this reason, it has a significant role in introducing people to the cryptocurrency ecosystem. Dogecoin's community has a mission to educate people about Blockchain Technology through a variety of content. The “Shibes” Community occasionally raised funds to serve a variety of purposes.
The Shibe community raised $50,000 for Jamaica’s national bobsleigh team to participate in the Sochi Winter Olympics in 2014 and $30,000 to drill clean water wells in Kenya's Tana Valley on March 22, 2014, as part of World Water Day. In 2014, after a Dogecoin wallet app called Dogewallet was hacked, the community raised 21 million DOGE, which was worth $12,000 at the time, to cover the losses of DOGE holders. The community has a say in updating the project and setting prices. Looking at the price chart, we see that DOGE has been seriously affected by the explosions in the crypto market and the comments of various celebrities about DOGE.
Dogecoin's popularity has been boosted by celebrities like Elon Musk, who once wrote "Former CEO of Dogecoin" on his Twitter profile. Musk said that Dogecoin was his favorite cryptocurrency when he was chosen as Dogecoin's future CEO in a poll conducted by Dogecoin's official Twitter account in early April 2021, surpassing the likes of Vitalik Buterin, and praised it even more with tweets. With his “One word: Doge” tweet on top of Edward Snowden's “One word: Bitcoin” tweet, who is known for the top-secret information he leaked to the public as a former CIA employee, Musk declared his support for Dogecoin and its community.
One word: Doge
— Elon Musk (@elonmusk) December 20, 2020
Dogecoin’s Technology
Dogecoin is built on top of Luckycoin, which is built on top of Litecoin. Therefore, it works with the Proof of Work consensus. Since it is built on top of Litecoin, it has Litecoin’s Scrypt technology. That is why miners cannot use SHA-256 Bitcoin mining equipment, but instead need to use FPGA or ASIC. In its early days, the network's processing power was 150 TH/s (TeraHash/second), which was just below Litecoin's 170 TH/s. For this reason, miners who mined LTC were able to mine DOGE at the same time through merged mining and increase their profits. Similar incentives continue today. This combined mining algorithm, in which two blockchains accept blocks by relying on each other's work, is known as Auxiliary Proof of Work.
Users who validate Doge blocks are rewarded with 10,000 DOGE. This process repeats itself every minute. In this respect, Dogecoin offers a faster mechanism than Bitcoin or Litecoin on which it is built. Although it has benefited from upgrades to Litecoin, it has not received a significant upgrade since 2015. However, the community has long voiced its desire for Dogecoin to move to the Ethereum chain.
The Dogecoin Team & Company
Dogecoin was launched in 2013 by Billy Markus, a software engineer at IBM, and Jackson Palmer, a software engineer at Adobe. The official website was launched on December 6, 2013. Markus created dogecoin.com, while Palmer created Dogecoin's protocol by studying Luckycoin and Litecoin.
Dogecoin’s Digital Asset Economy
Unlike many deflationary cryptocurrencies like Bitcoin, Dogecoin is inflationary, meaning it doesn't have a maximum limit, unlike cryptocurrencies like Bitcoin, which have a limited supply. Through mining, its supply is always increasing.
At the time of this writing, 128,094,794,875 are in circulation and have a market cap of $1,120,927,565. With the current processing power of the Dogecoin network, 174.1 DOGE can be mined per day.
Dogecoin Collaborations
The large amount of Dogecoin in the market has brought wallets that support Dogecoin. There are three popular Dogecoin wallets, two are software-based and one is online. These are Dogecoin Core, MultiDoge, and Dogechain.
- Dogecoin Core: This wallet contains the entire Dogecoin blockchain. If you use this wallet, your computer becomes a Dogecoin validator.
- MultiDoge: This is a lightweight wallet. This means that your computer does not require it to be a validator, it only stores enough information to use DOGE.
- Dogechain: This application allows you to use the Dogecoin blockchain without storing any data on your computer.
Evaluation of Dogecoin
Dogecoin offers faster and low-cost transactions compared to major cryptocurrencies such as Bitcoin and Litecoin. It has set an example of having a real community. The community's movement can be tracked on social media platforms like Reddit and Twitter to see the impact of these movements on price changes. This situation creates volatility problems as we have mentioned above.
Dogecoin is similar to fiat currencies in that it has constant inflation, which keeps liquidity high by directing users to trade their assets instead of holding them. Its decentralized nature is considered a significant advantage. It has become a popular choice for users stepping into the world of crypto.
