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What is Dogecoin?

By admiin Mar 27, 2019

A form of digital currency, Dogecoin is supported by Shiba Inus. The logo of this currency is taken from the renowned Shiba Inu dog that was quite a rage as a meme on the internet. What is the most interesting fact about this currency was that, at the outset, this currency came into being as a “joke currency”. But soon enough, a whole web community was formed around the Dogecoin and the capitalization of the coin reached US$60 million in the year 2014.

The creators of Dogecoin are said to be Jackson Palmer, Billy Markus and Shibetoshi Nakamoto. The plan for Dogecoin was to make it reach a limit of 100 billion tokens. In the year 2014, the first ever ATM of Dogecoin was also launched in the city of Vancouver.

This currency also has some achievements to its name, like gather finances for the Jamaican bobsled team so that it can go to play at the Sochi Olympics. Other philanthropic projects like financing a plan made for building a well in the backward areas of Kenya for distribution of safe drinking water. All thanks to the community of Dogecoin which has taken it seriously and has actually led it towards tremendous growth. At the present, the capitalization of Dogecoin has crosses $1 billion.

Advantages of Dogecoin

Since not many people are familiar with the functioning of Dogecoin, let us tell you some benefits of this currency:

  1. Security

The security procedure of Dogecoin derives from Litecoin which uses the scrypt proof of work protocol. This will not allow ASICs to mine the currency. Only computers will be able to mine Dogecoin.

  1. Fast process

The block time of Dogecoin is only a minute as against 2.5 minutes that is the block time of Litecoin. This will let you do the transactions faster and give you a confirmation soon.

  1. Mining reward

Earlier, there was no fixed mining reward and anyone could get any number of reward coins. But now, only 10,000 can be gained in terms of mining reward.

  1. Simple usage

The understanding of Dogecoin is not very complex. It is just digital money that functions in a decentralized manner. You can deal in the currency and get an exchange value.

There are multiple online platforms that offer trading in Dogecoin. Some of the notable exchanges are BTC38, Mengmengbi, and Bter. A good thing about Dogecoin is also that Dogecoin can create as many coins as the market demands. This is something that not many other Cryptocurrencies will allow. However, the flipside of this fact is that inflation can easily occur with Dogecoin.

Dogetipbot is a service that websites like Reddit use for tipping. So, the tipping in done in the form of Dogecoins. Also, when you do a transaction in Dogecoin, the transaction fee will be much lower than many other digital currencies. This can be attributed to the fact that each token in Dogecoin does not have a very high value. If you are looking for a currency that does not charge you a lot while also being easy to trade in, the Dogecoin is the best option for you.