Originally conceived as a joke aimed at making fun of cryptocurrencies, Dogecoin has now gone beyond a mere joke. With a capitalization exceeding $16 million as of early March 2022, the digital currency symbolized by the Shiba Inu has a particularly active community.
Dogecoin (DOGE): what you need to know
1 – What is Dogecoin (DOGE) cryptocurrency?
- The basic principle : Created in 2013 by Oregon programmer Billy Marcus, Dogecoin is a pure cryptocurrency, that is, it is used exclusively for making payments. In principle, as in its technology, Dogecoin is inspired by Bitcoin (BTC), but differs from other virtual currencies such as Ethereum (ETH) or Ripple (XRP), which put financial transactions on the back burner.
- Use : Dogecoin allows you to buy goods or services through a decentralized, secure payment system and with reduced fees. It is an open-source “peer-to-peer” cryptocurrency that allows developers to contribute to the development of the code, in particular on Github.
2 – The project and blockchain behind Dogecoin
- Project : The advantage of the algorithm used by Dogecoin is that it speeds up mining due to a lower hash rate than Bitcoin. Transaction confirmation time is ten times faster than the world’s first cryptocurrency, making it an ideal asset for payments and transfers. Dogecoin is usually suitable for mini-transactions up to 10 euros.
- blockchain : As with bitcoin, the Dogecoin network operates through blockchain and mining processes using cryptography to secure transactions. It is a proof-of-work type of technology, its Scrypt algorithm is the same as Litecoin and therefore much faster than Bitcoin (SHA-256). Mining Dogecoin is less energy intensive and requires less powerful machines than Bitcoin.
3 – Dogecoin (DOGE) Analysis and Opinion
- The block production speed is 10 times faster than bitcoin.
- One of the most active communities on the crypto planet.
- Very low transaction fees, typically around $0.01 compared to almost $10 for Bitcoin.
- One of the most speculative cryptocurrencies in existence. This allows you to play on the effect of deep leverage, investing little money thanks to a lower price than Bitcoin (BTC) or Ethereum (ETH).
Read also Shiba Inu and Dogecoin: Should the two famous memcoins collapse in the next few days?
- Created as a joke, Dogecoin has not had a well-defined project since it emerged from the shadows.
- Technology and evolutionary developments have lagged behind, limiting its use to an essentially participatory economy.
- Capitalization, in fact, belongs to a handful of “whales” (large investors).
4 – How to earn or mine Dogecoin (DOGE)?
Due to its great popularity, Dogecoin is available on most exchanges, but we recommend Binance, the broker with the most liquidity for this token currently in circulation.
Mining, on the other hand, requires much less computing power than bitcoin, since Dogecoin uses Scrypt to guide the mining of the new currency, while bitcoin uses the much more resource-intensive SHA256.
The block reward is also faster: the miner earns 10,000 DOGE for each verified block. In addition to suitable hardware (particularly GPU and ASIC), it is necessary to purchase suitable software such as cpuminer for GPU mining or CGMiner and MultiMiner for ASIC mining.
Mining can be done solo or in a pool to pool your computing power with other miners and share the reward in proportion to the available power.