What Is Dogecoin (DOGE)?
Dogecoin (DOGE) is a memecoin inspired by the “Doge” meme which features a Shiba Inu dog. The Dogecoin token was based on another crypto asset called Litecoin which employs Scrypt technology next to the Proof-of-Work algorithm. Thus, the codebase of Dogecoin is essentially a fork of Litecoin.
The Dogecoin token also uses Scrypt technology and takes various features from Litecoin including its hashing algorithm. The Scrypt algorithm is basically an alternative to Bitcoin's SHA-256 mining algorithm. However, Scrypt mining differs in that it places a greater emphasis on memory than on pure CPU power in an effort to lessen the advantage that ASICs enjoy, while enhancing network participation and energy efficiency.
Since Dogecoin has an inflationary supply, it means that an infinite amount of coins can be mined (roughly 5 billion additional tokens are mined each year). Dogecoin can be mined either by joining a mining pool or individually.
The software that can be used for mining DOGE coins can either be Windows, Mac, or Linux. Though note that instead of mining, with Dogecoin it’s digging. This word was replaced to keep the whole concept of dogs and their urge to dig bones or anything else for that matter.
Besides, there’s a Dogecoin Faucet that provides users with free DOGE coins. The Dogecoin Faucet is a website that gathers DOGE contributions from users and then redistributes those DOGE coins bit by bit to users who request free coins. The main goal of this system is to assist those who start only with a few or no Dogecoins by giving them some free ones. Coins can be requested every three hours.
However, you can also acquire Dogecoins by trading or even simply by purchasing them. Though before buying, keep in mind that the Dogecoin price tends to fluctuate with the whole crypto market. If you’re interested in the fluctuation patterns of Dogecoin price, check out the DOGE price chart above.
The Story of Dogecoin
Billy Markus and Jackson Palmer are the developers of Dogecoin. The idea of Dogecoin was initially born from Palmer’s tweet in which he combined crypto and Doge meme which were the two popular concepts on the internet at that time. Billy Markus, who is a developer and a gamer, materialized the idea in approximately three hours.
Besides, the success of Dogecoin goes hand in hand with Elon Musk's enthusiasm for Dogecoin. Early in 2021, Elon Musk tweeted about Dogecoin and shared a DOGE meme featuring the Lion King. This, of course, immediately sparked people’s interest in Dogecoin. It even resulted in Musk talking about Dogecoin on Saturday Night Live.
However, despite Musk's assurances that the DOGE price would skyrocket, the coin crashed a few months after Saturday Night Live. Following that, Musk started to lose interest in the token, which resulted in the DOGE price falling even further. Nevertheless, Musk still drops some tweets about DOGE from time to time and, overall, Dogecoin still remains at the top of the crypto market next to other much bigger projects.
A non-profit Dogecoin Foundation was established in 2014 to offer governance, support, advocacy, and trademark protection for the Dogecoin crypto project. Though it stopped functioning as time passed.
However, in 2021 it was relaunched. Its current priorities are to assist the Dogecoin ecosystem, community, and the development of the Dogecoin blockchain. The team behind Dogecoin Foundation consists of:
- Billy Markus (the founder of Dogecoin) who is responsible for taking care of the community and releasing memes.
- Max Keller (the developer of Dogecoin) who is the technical advisor of the Foundation.
- Vitalik Buterin (the founder of Ethereum) who is the blockchain advisor of the Foundation.
- Jared Birchall (the head of Elon Musk’s family office) who is the legal and financial advisor of Elon Musk.
The Usage of Dogecoin
DOGE tokens are mainly used as reward tokens on Twitter and Reddit. Essentially, users of these networks can get DOGE coins for publishing good-quality content. Users get tipped with DOGE coins by other users who like their content. Though in order to be eligible for DOGE rewards, you have to become a part of the Dogecoin community.
Besides, since Dogecoin has really low transaction fees, it became pretty popular among Bitcoin holders. Instead of converting BTC to cash, holders can convert BTC to DOGE, and then to cash. With Bitcoin having far higher transaction fees than Dogecoin, this enables Bitcoin holders to dodge those fees.
Additionally, don't forget to check out the Dogecoin price chart placed above to see the current (or the previous) DOGE price.