Overview – Dogecoin
Dogecoin cryptocurrency or DOGE featuring Shiba Inu as its logo has raised the value with an internet meme. It has a Litecoin fork and no cap on its mining, unlike Bitcoin that stops at 21 million. Jackson Palmer worked as a project manager, created Dogecoin in 2013 with aid from IBM software developer Billy Markus. Palmer wanted to make a fun cryptocurrency that would go beyond Bitcoin. It is known for its fund-raising activities globally. It is being used as a tipping service online on Reddit and Twitter to appreciate good content postings. Dogecoin was launched on 8 December 2013 and it also uses a scrypt hashing algorithm.
History of Dogecoin and How It Started?
Palmer received an optimistic response on social media and went on to buy dogecoin.com. Markus worked on Dogecoin’s code which he took from Luckycoin, which in turn took from Litecoin. The reward system for block mining was randomized, which made it static since March 2014. Dogecoin adopted the scrypt technology from Litecoin and proof-of-work. Dogecoin’s value hit 300% as China banned cryptocurrency use by its banks. Dogecoin is an inflationary coin as there is no limit to its mining than Bitcoin that is deflationary as its minting limit has been set to 21 million. Bitcoin’s circulation release-amount is halved every four years through the mining reward, and the rate of inflation is also halved.
Amongst its goodwill efforts, Dogecoin raised $50,000 in 2014 to send the Jamaican team to the Winter Olympics as they lacked funds. Loyal Shibes helped build water wells for the Kenyan population by raising $30,000 for the Tana valley. Dogecoin sponsored Josh Wise with $55,000 for North-American Stock Car Auto Racing NASCAR in March 2014.
Dogecoin achieved $20 million in market capitalization and a strong fanbase by its first birthday. Dogecoin saw a hard time when Jackson Palmer departed from the group due to a toxic community that has grown around the DOGE. Alex Greene, he is also known as Ryan Kennedy, a British citizen and creator of Moolah, the Dogecoin exchange had donated 15,000 instead to NASCAR instead of 1,500. Convinced with his acts on the exchange, people began to donate huge sums. He was using the money to buy $1.5 million Bitcoins and a lavish lifestyle for himself. He was convicted of rapes in 2016 and sentenced to 11 years of imprisonment.
Dogecoin picked up, and its value skyrocketed from 2017 to 2018 among other cryptocurrencies and reached a peak of $0.018 in trade value and more than USD 2 billion market cap.
2019 brought another surge with Elon Musk, the CEO of Tesla, in a tweet. In 2020, it was being used for trade purposes and remains active amongst the community miners. DOGE sees great backing by its fans in 2021, has emerged as a tipping system on Reddit. The Shibe group online tips for putting up good content. Dogecoin on Reddit has charities like DogePizza and SocksForTheHomeless. Its market capitalization today is more than USD 600 billion. As per dogecoin predictions, the currency might reflect significant price action in the upcoming months.
How Does Dogecoin Work?
Dogecoin, like Bitcoin, was compiled in C++ programming language. Its protocol is MIIT licensed open-source allowing copying publication, modification, sublicensing, distribution, and selling protocol copies. It cannot facilitate smart contracts like Ethereum as it is not Turing complete. The monetary policy of DOGE was altered as an inflationary currency in 2014. It functions online as a tipping crypto-coin to reward users who put up good post content.
Also, the scare of 51% attack was put at rest with the dogecoin community as no entity can afford the power that would be required to control 51 percent of the network. Dogecoin allows merge mining which will enable one to mine Litecoin along with DOGE simultaneously. Dogecoin’s Transaction processing is much faster than Bitcoin. It takes only one minute for DOGE’s block time as opposed to ten minutes of Bitcoin block.
The Algorithm Uses by Dogecoin
Dogecoin is a fork of blockchain luckycoin, which is a fork of Litecoin, which is also a fork of Bitcoin. It is preferred over other Scrypt PoW cryptos and enjoys a hash rate of 150 TH/s, a little below Litecoin. Most miners mine DOGE along with Litecoin as mining DOGE increases their profits. It is a peer-to-peer decentralized network that uses the proof-of-work consensus algorithm. The network depends on miners to validate transactions and safeguards the network from hackers wanting to manipulate the blockchain‘s transaction record. However, DOGE uses a scrypt mining algorithm. It uses less energy and has lower hash rates than SHA-256 of the Bitcoin algorithm.
Scrypt Mining Algorithm: How Helpful Is This Algorithm?
As we know, DOGE uses a scrypt mining algorithm. Bitcoin’s fork Einsteinium uses Scrypt and uses dPoW delayed Proof of Work which helps resist 51% attack. Einsteinium Is a fork of Bitcoin’s source code that launched in March 2014. It adopts Scrypt instead of SHA-256. Scrypt mining consumes much less power as it lessens ASICs dominance and is four times faster than BTC block mining. The mining range varies from Kilohashes Megahashes per second of SHA-256, and scrypt is much faster at Terahashes.
To Sum up
Doge is built on a scrypt algorithm that makes its transactions four times faster and uses less power than Bitcoin and altcoins. Having no mining limit, it is inflationary and also 51% attack resistant.