Dogecoin: features of this cryptocurrency and where to mine it
Dogecoin is a relatively new open-source cryptocurrency. The symbol of the coin is a well-known Internet meme Doge – about a funny dog breed Shiba-Inu.
This coin has an official website. Here it is: dogecoin.com
Dogecoin was created based on another project called Luckycoin
But what’s most interesting is that even Luckycoin itself was also initially made based on another cryptocurrency, namely Litecoin. But Litecoin was also a reference to another currency? “Which one?” you ask. Bitcoin. The main differences from Litecoin and BTC were faster transactions and huge amount of coins.
History of Dogecoin
Dogecoin was created by two programmers, Billy Marcus and Jackson Palmer. Blockchain launched on December 6, 2013. The creators themselves called their project a joke at first.
In 2015, Billy Marcus sold all of his currency, as reported in a Dogecoin’s subreddit.
Reddit as a whole had a serious impact on the development of the project, and even today the thread dedicated to the project is very popular. In the spring of that year, the second founder of the project, Jackson Palmer, also announced that he was leaving the project.
Features of this cryptocurrency
The main difference between it and BTC and its offshoots is its inflationary mechanism. Bitcoin has a strict and unprincipled limit on the number of tokens that can be mined, and it is equal to 21 million. Once the limit is reached, no one can mine BTC. From that point on, it will only be possible to get paid for finding hashes.
Dogecoin uses another approach to regulating economic mechanisms – inflationary. In simple terms, Dogecoin, unlike Bitcoin, can be infinite in number. For each block mined, the user receives a reward of 10 thousand coins. Dogecoin continues to be mined to this day, and as of the end of 2022, there are more than 140 billion tokens in total. This makes it the cryptocurrency with the highest circulation. The only close project with similar circulation is Stellar, which has about 105 billion tokens. in circulation.
Dogecoin is indeed a liquid coin, as confirmed by various studies. For example, according to CoinMarketCap, which was provided in 2021, Dogecoin had a trading volume of one billion dollars in 24 hours and a market value of $25 billion. These figures speak to the coin’s popularity and liquidity. Such figures are largely due to the lack of restrictions on issuance. Paying 10 thousand coins for each new block allows this cryptocurrency to stay afloat.
Dogecoin uses the Proof-of-Work (PoW) consensus algorithm to confirm network security. However, this protocol is not a version of SHA-256 like Bitcoin, for example. The local mechanism relies on Scrypt technology to work. This decision in BTC was made to prevent the use of overly powerful mining farms, and to prevent imbalances from occurring. However, the limitation was then overcome with special ASIC equipment for the Scrypt algorithm.
Dogecoin is a copy of the Bitcoin blockchain with minor modifications. When users send currency from one wallet to another, the transaction must be validated by others and added to the public ledger.
The block size of Bitcoin and Dogecoin is the same. It is 1 Mb. But the point is that Dogecoin blockchain confirmations are 10 times faster. Blocks are confirmed every minute, which helps solve the problem of low transaction speeds.
It would seem to sound good enough, but both BTC and Doge lag far behind their ideological rivals in transaction speed.
How can I get Dogecoin?
DOGE could be received in several ways, but the main one is mining. It will require just computer hardware and software. Even though usually you need a really powerful GPU to mine the cryptocurrency, it will be enough to have a mid-tier rig to farm Dogecoin. To start getting these tokens, first you need to create a wallet in this payment system. You can do this on the official site. Then, you will need to download and install the program, and then run it. The utility will work in a passive mode, so all you have to do is just wait and watch how your device diligently mines coins.
The benefit of mining directly depends on the cost of the cryptocurrency, how much it covers and exceeds the cost of hardware and electricity. The low value of the coin does not allow you to mine it profitably, but you can get it from some sites that offer cryptocurrency as a gift for passing registration. Not always tokens will be given for registration alone – sometimes you will need to enter captcha, for example, or perform some other tasks.