Thursday, September 29, 2022

What is Dogecoin (DOGE)?

Dogecoin (DOGE) began as a joke in 2013 and has now evolved to become one of the world’s most popular cryptocurrencies. Because Dogecoin is a fork of the Litecoin source code, it is a good entry point for those new to the cryptocurrency industry, driven by its internet popularity.

Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency based on a decentralized network of computers that employs a blockchain, which is a distributed ledger. Consider a blockchain to be a long-running receipt of currency transactions. The computer network analyzes transactions and assures data integrity before storing them on the blockchain. 

To produce new DOGE and defend the network, the Dogecoin crypto network relies on Proof-of-Work (PoW) mining. However, unlike Bitcoin (BTC) and litecoin (LTC), DOGE is an inflationary coin, which means that there is no limit to the quantity of DOGE coins that may be produced.

DOGE history

Jackson Palmer, a product manager at Adobe Inc.’s Sydney, Australia, office, alongside Billy Markus, a software developer is credited with inventing the cryptocurrency in the year 2013. After receiving positive feedback on social media following his tweets about the coin, Palmer decided to purchase the domain dogecoin.com

Though developed as a parody of the explosion of altcoins that followed the debut of Bitcoin, the DOGE crypto network has outperformed expectations in terms of growth, ecosystem activity, and market value.

Its origins can be traced back to the “Doge” internet meme, which depicts a cartoon representation of a Shiba Inu (a Japanese dog breed) as its logo. 

The popularity of dogecoin has contributed to the cryptocurrency’s rise in value. Currently, electric automaker, Tesla Inc accepts Dogecoin as a means of digital payment from its buyers. A few months after Tesla CEO Elon Musk announced that DOGE would now be accepted for the purchase of Tesla products, its value increased by 15 percent. 

Since 2015 when it was first profiled by CoinMarketCap, Dogecoin has increased in its price valuation by more than 163837.72%. Today, the memecoin has a price of $0.14 and boasts of a market capitalization of $18,590,461,400.36, making it the twelfth largest digital currency by market cap.

Dogecoin All-Time Growth Chart. Source: CoinMarketCap

How DOGE works

Dogecoin, like most cryptocurrencies, stores and adds all transactions done on its network using a distributed, secure digital ledger, which is distributed and secure. All transactions on the Dogecoin blockchain are also protected by encryption, which can be found on the blockchain network. 

When mining Dogecoin, miners utilize computers to solve complex mathematical equations in order to execute and record transactions on the blockchain network, which is powered by cryptocurrency. Miners are rewarded with Dogecoins in exchange for their efforts, which they may either sell on cryptocurrency exchanges or save in their own wallets for future use. 

Despite the fact that Dogecoin may be used to pay for products and services, it has not yet proven to be an effective cryptocurrency store of value. This is due to the fact that Dogecoins can be made indefinitely, resulting in the cryptocurrency becoming extremely inflationary.

The DOGE Community

Dogecoin is now accepted as a form of payment by a wide range of businesses and organizations, including restaurants, supermarkets, web hosting, product vendors, e-book dealers, and travel services. Well-known companies, like MonsterMeg, Playhub Casino, Prodigy, and FlokiNET are also among popular businesses that have embraced the coin as a payment method.

In spite of the fact that Dogecoin was originally intended to be used as a tipping coin for online content producers and to support charitable groups, it has grown to become a popular token in the investing community.

Historically, the Dogecoin Foundation has attempted to assist the wider Dogecoin community by making philanthropic contributions to various organizations, the most recent being the support for Ukraine which has been under Russian invasion for more than a month.

The following are some of the most memorable moments in the history of Dogecoin as a digital currency;

  1. NASCAR Sprint Cup driver Josh Wise was sponsored by Dogecoin users for $55,000 (67 million DOGE) in May 2014. The sponsorless’ 98 Ford Fusion acknowledged all of his fans for their huge support.
  2. The Sochi 2014 Winter Olympics was almost out of reach for the 2014 two-man Jamaican bobsled team, but that changed as there were numerous online fundraisers organized by the DOGE community. 
  3. 4 Paws For Ability, a non-profit that offers service animals to children, was the beneficiary of Doge4Kids, a campaign established in 2015. The service dogs are trained to assist children with autism. An estimated $30,000 in donations was collected by Markus and his colleagues to buy two adult assistance dogs for deserving families at the time.
  4. A DOGE holder, Lemondoodle, while thanking the creators for the opportunity to donate to a cause, said “I only joined for the sake of goodwill” while another, Yarkls explained that he initially joined the community to make fast profits, but now sees it as a bigger cause to be part of.

Conclusion

Despite the fact that Dogecoin’s origins were far from serious, the cryptocurrency has gained a large online following as well as a significant market worth.

Online cryptocurrency marketplaces have seen an increase in the number of people who are buying and selling Dogecoin, which is promoted as a “fun and friendly” digital money. As a result, Dogecoin has played a crucial role in the development of memecoins in the cryptocurrency world.

Dogecoin, in contrast to the majority of cryptocurrencies, is not backed by any assets or cash flow (unlike stablecoins, for example). As a result, the price of a commodity is solely determined by the user’s demand for it.

Ayo Alabi
Ayo Alabi is an experienced writer and Fintech enthusiast, passionate about educating people and helping businesses that want to see their Google search rankings surge. Her articles have appeared in a number of e-zine sites, with focus on balancing informative with SEO needs–but never at the expense of providing an entertaining read.

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