“Who let the Doge Out?”
Ft. Elon Musk.
You might be familiar with the popular Internet meme featuring a Shibu Inu (Japanese dog) called “Doge”. Bet you never thought a currency could be named after a meme, huh? Like Shakespeare would say, “What’s in a name?”
History of Dogecoin.
Dogecoin was developed jointly by IBM developer Billy Markus and Adobe data scientist Jackson Palmer, who launched the cryptocurrency in 2013 as a “fun” and “friendly” alternative to Bitcoin, satirizing the online cryptocurrency hysteria. It is like one of those jokes that catch on so fast, that it outgrows the joke and becomes a real thing.
You can’t possibly fail to notice DOGE when the richest man in the world can’t stop tweeting about it. That’s right, Elon Musk is obsessed with Dogecoin. No wonder prices of Dogecoin are sky-rocketing!
Musk tweeted,” DOGO 4 DOGE”, referencing Tesla’s supercomputer Dogo. While Tesla plans to use the computer in building self-driven cars, Reddit users speculated that Dogo may be used to stabilize the Dogecoin market.
Musk’s latest hilarious tweet “Who let the Doge Out?” sent Twitter into a frenzy.
After Musk’s Twitter posts, DOGE traded 4.28 percent higher than $0.056.
Musk has recently posted a Twitter poll asking his 45.8 million followers to pick “the future currency of Earth.” He offered two options: “Dogecoin to the Moooonn” or “All other crypto combined.”
The survey resulted in 71.3 percent of the 2.4 million voters claiming that “Dogecoin to the Moooonn” will be the future of digital currency.
What exactly is Dogecoin?
This is a first-generation cryptocurrency, which is a form of digital money that allows peer-to-peer transactions over a decentralized network securely, just like Bitcoin.
The Dogecoin structure was based on an existing cryptocurrency, Luckycoin, which obtained a randomized incentive for mining a block of the coin. Luckycoin (LKY) is a crypto-currency. Users can produce LKY via the mining process. Luckycoin has a supply of 19,326,319,14375.
What makes Dogecoin special and unique is that it was not built as a viable alternative to Bitcoin, rather it was developed to spread goodwill among the masses. One big difference: the original blockchain proof-of-concept is bitcoin. Bitcoin has been an epoch-changing invention that has redefined the way money works.
In comparison to other cryptocurrencies, Dogecoin has had a fast initial coin production schedule: 100 billion coins by mid-2015, with a rate of additional production of 5.256 billion coins each year since.
How do transactions with Dogecoin happen?
To understand how transactions with Dogecoin take place, let us consider the following situation.
Jack lives in America and wants to transfer money to his friend Henry who is in Europe without the help of a bank or paying the exchange fees. Jack decides to use Dogecoin.
- Jack sends 50 DOGE to Henry.
- The computers or nodes in the blockchain check if Jackson has 50 DOGE in his account. If more than half the nodes in the blockchain concur that Jack has the required amount, then the transaction is added to the blockchain.
- Henry receives the 50 DOGE.
Now, you may be wondering how and why exactly Dogecoin is used.
Dogecoin is used with a wallet on your computer, tablet, or website. You may use it to purchase goods and services or trade for other currencies. One of Dogecoin’s most common uses is to “tipping” fellow Internet users who make or post good quality content. Think about it as a more practical “like” or upvote, with actual significance that can be used around the internet. It is also used in making donations on the Internet.
So, why should you buy Dogecoin?
The network is stable and offers real-time consensus. Like Bitcoin, hackers will need to manipulate 51 percent of the hashing power of the network to adjust the status of the blockchain. The longer a blockchain operates and the more new users it receives, the less likely it is to have a 51 percent attack due to its increasing hash power. Hash rate here refers to the computational power per second while mining. After a certain extent, this becomes prohibitively costly.
Considering that the latest Dogecoin hash rate is 203.97 TH/s, this is rather unlikely. Therefore, given the scale of blockchains such as Ethereum, Bitcoin, and Dogecoin, such a situation is almost impossible.
One of the most important terms you will come across while learning about Dogecoin is digging(Mining) of Dogecoin.
What is Digging of Dogecoin?
Dogecoin mining is the method of being paid with a new Dogecoin to verify transactions on the Dogecoin blockchain. There are thousands of computers working on the same block of transactions simultaneously. The catch is that only one person gets to win the reward. In layman’s terms, you can compare digging Dogecoin to a lottery.
How to buy Dogecoin?
Unfortunately, not all cryptocurrency exchanges support Dogecoin transactions, the choice of platform is limited. Binance and Kraken are the two key exchanges to offer Dogecoin.
In conclusion, digital currency is the future of all financial transactions. Dogecoin is one of the fore-runners in the race for more efficient financial transactions.
References:
For more information on Dogecoin, you can visit the official website.
To familiarize yourself with how Dogecoin works, you can visit: https://www.youtube.com/watch?v=qVMdq9pDiuQ
Article on how to use Dogecoin: https://www.bitdegree.org/crypto/what-is-dogecoin
To learn more about digging Dogecoin, you can visit https://www.bitdegree.org/crypto/tutorials/dogecoin-mining
Here is a tutorial to help you get started with mining Dogecoin:
https://www.youtube.com/watch?v=yNpfilTliqE
For live price tracking of Dogecoin visit here.
