What seems to have started as a joke (and indeed it was) has become a reliable cryptocurrency, if not serious. The biggest advantage of Dogecoin is undoubtedly the huge community that supports, develops and updates it. In fact, with more than 40,000 transactions per day, your network is second only to Bitcoin. What is all this about?
What is Dogecoin?
Dogecoin is a cryptocurrency inspired and developed from Litecoin’s open source that translates all the improvements already made for the Bitcoin Blockchain technology to create its own decentralized open source P2P system.
Dogecoin was created by Billy Markus (IB programmer and engineer) who had already begun testing the world of crypto currencies with “Bells” and Jackson Palmer of Adobe System. Its objective was none other than to provide a more “clean”, transparent and accessible for most users that had nothing to do with the black market or fraudulent uses.
Initially, this cryptocurrency was born as a bitcoin parody, although with the purpose of creating an alternative online payment system that reaches a greater number of people. Thus, its design follows a simple transaction system with a low cost that may have stimulated its growth.
Dogecoin seems to be the funniest coin in the wide range of cryptocurrencies, it is inspired by the famous Japanese dog breed Shiba Inu, whose meme called Doge has been viral for years. On the other hand, the Dogecoin blockchain tec community has tended to collaborate and promote charitable projects (such as raising funds for Olympic athletes in Kenya) which has also won the sympathy of the general public.
Value of Dogecoin
If anything has characterized Dogecoin, it has been a long initial period of little growth, from its launch in 2014 to July 2017.
During this past year and as has happened with other cryptocurrencies, the capitalization of Dogecoin increased exponentially along with the value of Bitcoin, rebounding in December thanks to its low transaction cost.
However, despite the increase in users, the coins have lost relatively part of their value so far this year and are currently located around the 35th place in the cryptocurrency rankings.
How is Dogecoin different from Bitcoin?
The speed of your transactions related with this blockchain technology, validated at the minute distance it from other cryptocurrencies like Litecoin, which needs 2.5 min or just like with Bitcoin (10 min.)
In terms of security, Dogecoin is considered the second safest currency according to Reddit, a social network in which users contrast opinions and ratings.
On the other hand, the mining does not need a great power so a simple personal computer can serve as a node to validate the blocks of this currency (Bitcoin does need ASICs for its mining).
However, the most relevant feature is its low commissions derived from its low cost of contribution, which together with the use of the Scrypt algorithm generates a higher return to the rest of the crypto enthusiasts. As a result, Dogecoin maintains an average of 40,000 daily transactions, second only to Bitcoin.
How does Dogecoin work?
Dogecoin bases its technology on the Bitcoin Blockchain and, from here, it structures its platform on the open source of Litecoin, also improving the capacity to generate blocks (it takes only 60 seconds).
On the other hand and as far as security is concerned, it maintains the Proof-of-Work system to avoid attacks by hackers.
The two most important algorithms used are Scrypt and SHA-256, the latter consisting of a set of hash functions. It is to emphasize that the use of these algorithms is not trivial, since it allows any ordinary computer to constitute a node and serve to undermine Dogecoins.
The open nature of the platform makes it possible to mine dogecoins through the validation of transactions made with this system. In this way, the miners obtain Dogecoins as a reward for carrying out this work, an opportunity that is available to anyone by the use of the indicated algorithms.
Where to pay with Dogecoins?
Dogecoin has reaped a huge popularity that has made its platform grow and, therefore, its number of transactions is only surpassed by Bitcoin. Thus, it is possible to use this cryptocurrency in numerous online stores, some of which you can consult here: https://www.dogecoins.com/spend.php
How to buy or get Dogecoins?
- Buy Dogecoin: although this coin is not one of the most valued cryptocurrencies in the markets, it is certainly one of the most popular, so you can acquire Dogecoins in almost any of the largest cryptoexchanges or exchange houses: Bitterex , Poloniex, Kraken, etc.
In most cases, the available pairs are DOGE / BTC or DOGE / Cryptocurrency, etc. so it’s going to be a bit difficult for you to buy Doges directly with USD (C-Cex, Yobit, SouthXchange) or in EUR (Bittylicious, BitFlip).
- Dogecoins Mining: You can get Dogecoins through the mining processes, since for each block deciphered the miners receive a reward from Doges. Being inspired by the Litecoin code, the Dogecoin platform is very much like its predecessor, however the blocks are solved in a record time of 60 seconds. Also, you do not need a super team to mine Doges, so mining is relatively accessible to everyone. For more information on this topic, consult the official website of Dogecoin: http://dogecoin.com/
Dogecoin in the future: is it worth it?
Is it a good idea to buy Dogecoins? Keep in mind that this Blockchain ICO was born of a joke and that it is an inflationary currency that has not developed any significant improvement or change since 2016.
On the other hand, its fame and community should not be forgotten, so that while its members use Dogecoin as a means to carry out their transactions, it will continue to exist. In addition, it is a simple currency to use and appropriate for those users who have not yet used the new payment method through cryptocurrencies.