It seems like digital currencies are never-ending. For instance, if you want to know what Dogecoin is, the answer will introduce you to a world where a new category of currencies seems to unfold; for example, this currency is known as the first meme coin, and who knows how many other “firsts” will emerge! FFMag is here to introduce you to all the “firsts” and “seconds” up to the “lasts” so you don’t fall behind on cryptocurrency information.
What is Dogecoin?
By reading this article, you will get to know the world’s first “meme coin” in the crypto market. This meme coin is a blockchain network and a native digital currency of that network, represented by the symbol DOGE and the currency sign Ɖ. The creation of this coin is said to have started as a simple internet joke and later gained a very reputable status with the support and promotion of famous individuals like Elon Musk. It is now among the top 10 cryptocurrencies globally, known for its high speed and low costs.
If you want to know more precisely what Dogecoin is, we can say that this currency is among the peer-to-peer and open-source altcoins, initially introduced to create confusion in the internet space. The reason was the widespread popularity of Bitcoin, which led the designers of this coin to create a digital currency that wasn’t as serious as BTC, intending to introduce a humorous and confusing topic in the internet and currency world. This effort did not remain at that level and gradually gained strength.
History of D ogecoin
This cryptocurrency was created in 2013 by its founders to lighten the very rigid and money-focused atmosphere of digital currencies, quickly gaining popularity and power.
Who are the founders of Dogecoin?
The creators of this lovable currency are Billy Markus and Jackson Palmer, who initially chose a funny and cute logo for their currency, featuring the Shiba Inu dog breed (a Japanese breed) along with an internet meme.
Before these two introduced their currency, the term “Doge” and the image of this cute Shiba Inu dog were already well-known and popular among users as a meme. When people intended to write humorous or funny texts, they used this image as a symbol. So if you ask someone what Dogecoin is and they laugh and refer to it as a “meme coin” or “joke coin,” you should understand and not be surprised.
Now, you might want to know more about the creators of Dogecoin; let’s get to know them better.
Billy Markus
Billy is a software engineering graduate who worked at IBM before thinking about designing his meme coin. In 2013, he decided to create a website featuring funny behavioral patterns. Therefore, he bought the domain Dogecoin.com and one of his projects was to joke about digital currencies, resulting in the creation of Dogecoin.
Jackson Palmer
Palmer is known for his role as the Chief Project Growth Manager of Adobe’s Cloud Data. His activities in market analysis, content management, and market research began in 2009 with Business Catalyst, which continued after seven months with his employment at Adobe. However, his significant activities in software development took shape at the new company.
Read More: What is Polkadot (DOT)?
Apart from these two main actors behind Dogecoin, other individuals like Langer Hans, Ross Nicoll, and Patrick Lodder have been instrumental assistants and companions in expanding this digital currency, striving to introduce it as a reliable payment method in various companies.
How does Dogecoin work?
Now that you are familiar with the nature of this currency and know what Dogecoin is, it’s time to learn how it works with the help of FFMag’s explanations.
Consensus Algorithm
If you have read other articles on this site about the functionality of digital currencies in the Litecoin domain, you should know that Dogecoin is considered one of these types of currencies, and the technology or algorithm used in it is a consensus based on Proof of Work (PoW). Therefore, Dogecoin miners cannot use Bitcoin mining equipment, which uses the SHA-256 algorithm.
In general, Dogecoin can be considered a fork of Luckycoin. In this category of coins, the reward system is random. The developers of this currency decided to maintain this reward system considering its initial humorous context.
Dogecoin and Bitcoin
The overall similarities between Dogecoin and Bitcoin in terms of currency mining and reward acquisition show that mining the currency in question also requires processes whereby miners can contribute their electrical power and computing systems to the network and receive rewards in return for verified outputs. A significant difference between these two currencies relates to the total number of units mined.
Bitcoin has a fixed cap of 21 million units, whereas Dogecoin has no such limit. The only defined restriction is the specific amount produced each year to prevent inflation.
How it Works
To fully understand what Dogecoin is and how it works, it is important to note that the technology used is blockchain and a decentralized model. With each valid and confirmed transaction, a new block is formed and added to the network chain, which serves as a ledger, and a copy of it is available to all users or nodes.
Merge Mining
At a point in mid-2014, Dogecoin’s price experienced a significant drop, raising concerns that the network might be at risk of attack. To address these potential issues, the designers turned to “Merge Mining.” Currently, Dogecoin operates using the processing power it receives from the Litecoin network. Therefore, if you intend to collaborate with this network as a miner, you should familiarize yourself with Litecoin and pursue it to obtain Dogecoin units amidst Litecoin mining.
Me, Shiba Inu, and Doge
Hearing the name Doge and seeing its iconic dog image reminds me of a beautiful Shiba Inu dog I once had but lost. Now, whenever I open a web page or applications related to the cryptocurrency market and see Doge’s name, I think of it… Now you tell me, with such memories, can I make rational trades in crypto? If you were in my place, would you only work with Dogecoin, or would you avoid it altogether? Until you help me decide, I’m reluctantly juggling various currencies, buying and selling them to pass the time until I sort out my situation with Shiba Inu and Doge!
Summary
For those who ask what Dogecoin is and have no information about it, the best way to explain and introduce this network and its dedicated digital currency is to talk about its creation, how it started, and its purpose. Dogecoin is among the top 10 powerful cryptocurrencies in the crypto market and operates on a blockchain network; thus, the algorithm it uses is consensus-based on PoW. To anyone asking what Dogecoin is, direct them to the FFMag site.
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By David Taha