Dogecoin is a cryptocurrency that we often find on the trending tier list on social networks. This is because the cryptocurrency that was born as a meme, has managed to create a strong community that is driving its capitalization.
Cryptocurrencies are revolutionizing the market since the appearance of Bitcoin, and they have many people watching their evolution and advancement. From Money Investors, we want to help you understand the financial sector and train you so that you know how to handle the information yourself, avoiding scams and deceptions.
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In this post, we are going to get to know Doge, the favorite currency of Internet users, and which has created a strong community within the digital environment. This community has participated in different acts of solidarity, and they intend to bring the currency to a continuous historical maximum. Doge to the moon!
Table of Contents
Dogecoin: What is DOGE
Dogecoin is a cryptocurrency that enables digital payments through the dogecoin Blockchain network. It was developed in 2013 by Billy Markus and Jackson Palmer, and it entered the market with a reputation as a virtual prank currency.
This cryptocurrency does not have a CEO or an official company, therefore, it is its loyal followers who drive the coin.
The cryptocurrency doge is primarily used to fund and tip content creators, but the number of merchants accepting it as a means of payment is on the rise. Its followers are increasing year after year and are pushing dogecoin prices and its market capitalization to ever higher highs.
Doge was born as a meme cryptocurrency, but has become a top coin by market cap with a 5,000% yield in 2021, and is supported by millions of users including Elon Musk and Snoop Dogg.
Dogecoin: How it works
Dogecoin is based on the code of Bitcoin, the first cryptocurrency. Doge was born as a fork of Luckycoin, which, in turn, was a fork of Litecoin.
Dogecoin has a Litecoin Scrypt-based consensus mechanism. For this, doge buys you many of the functionalities with Bitcoin. Like Bitcoin, the participants of the doge Blockchain network, protect the network and the creation of blocks by verifying transactions. The difference with doge is that it has a lighter architecture, which allows it to process transactions faster than Bitcoin. For every block that miners generate, they get 10,000 DOGE.
The creators of this cryptocurrency designed the internet’s favorite currency with a maximum limit of 100 billion Doge. However, the team removed the cap a couple of months after launch. This is one of the reasons that its price does not increase as much as other cryptocurrencies.
Currently, DOGE has an inflationary supply, generating 5 billion new DOGEs each year.
How to use Dogecoin
Dogecoin is used as a Blockchain-based virtual currency. It is used to make payments and transactions. DOGE users can send and receive cryptocurrency with their dogecoin wallets. Transactions are made in seconds and with minimal fees.
The cryptocurrency can also be used to tip content creators. It is a perfect currency for microtransactions since it allows the sending of small amounts with almost zero fees.
Dogecoin wallet
The digital wallets or purses Cryptography is the place where cryptocurrencies are stored. They contain the information to use cryptocurrencies, including public and private keys.
In the case of Dogecoin we can find 4 types of wallets:
Software wallets
Software wallets come in many different ways, each with its own characteristics. Dogecoin offers two software wallets for download:
- Dogecoin Core: Contains the entire Dogecoin blockchain. Downloading can take a long time, and it turns your computer into a Dogecoin node.
- MultiDoge: it does not turn your computer into a full node, but it does store enough information to use Dogecoin.
Online wallet
These wallets allow you to use the Dogecoin blockchain, without the need to store the information on your computer.
Paper wallet
Stand wallets can be printed and have them on hand. It is a safe way to store your Dogecoin and can be found on the internet.
Hardware wallets
These wallets consist of removable hardware devices like USB sticks. They can fetch high prices of up to 100 euros, but like paper wallets, they are a safe way to store cryptocurrencies.
Dogecoin: The Shibes Community
Dogecoin has a close-knit Internet community in the wake of cryptocurrencies. These users have collaborated together in charitable causes and other curious cases, such as the collections mentioned below:
- The Dogecoin community raised $50,000, and helped the Jamaican bobsled team, so they could go to the Sochi Winter Olympics.
- On world water day, the Shibes (name of the dogecoin community) raised $ 30,000 to help build clean water wells in Kenya’s Tana Valley.
- The Dogecoin community also paid for the sponsorship of a NASCAR driver named Josh Wise. This pilot raced in a car themed with the Dogecoin logo.
Dogecoin had hacking problems early on. In 2014, a wallet of this cryptocurrency, known as Dogewallet, was hacked. The pirates stole 21 million Dogecoin worth approximately $ 12,000. This happened on December 25, and the community responded to the event by raising $ 13,000 to pay users who lost money.
In the case of piracy, it should be added that Blockchain technology is very secure. The Doge blockchain has never been hacked, however, all blockchains are at 51% risk of attack.
A 51% attack occurs when half of the blockchain is under the control of one person or group. If this happens, that group could carry out invalid transactions, which would be a fraud that would affect any cryptocurrency victim of the attack.
Conclusion
Dogecoin is a rising currency and major recognition. While its value will never reach that of Bitcoin, because there is no limit to the creation of Doges, it can boast of having the most active community of all cryptocurrencies. Plus, he includes people of interest among his ranks like Snoop Dog and Elon Musk. The slogan “Doge to the Moon!” May one day come true. and end up putting Shiba on the moon.
From Trading from Zero, we want to help you understand the financial sector and train you so that you know how to handle the information yourself, avoiding scams and deceptions.
If you want to enter the world of cryptocurrencies and the stock market, you can find us at read more here. We have courses adapted to different levels, whether you are a beginner in the field, or want to start in the world of the stock market, going through advanced training so that you increase the knowledge you already have.
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