DOGE is a completely anonymous, decentralized and extremely secure cryptocurrency. On its own website, DOGE has been described as an innovative and fun coin that grows rapidly.
The cryptocurrency was born in 2013 and was created by Jackson Palmer and Billy Markus as a joke. They were inspired by the ‘Shiba Inu’ dog meme that became very popular on the Internet at the time. However, even though it was born of a joke, it has earned a good place in the market capitalization ranking of cryptocurrencies, managing to become on of the most popular digital assets on the crypto ecosystem. Dogecoin has managed to gain many loyal followers and its community has managed to do great things with cryptocurrency. They managed to raise funds for the Jamaican bobsled team to go to the Sochi Winter Olympics and to build a well in rural Kenya to provide access to clean water.
What is DOGE based on?
The cryptocurrency was based on Litecoin and, with which, the changes that were made to Litecoin on the Bitcoin platform are also the Dogecoin.
At the time Dogecoin was launched there was a risk that they could carry out a 51% attack so its developers designed a mining operation merged with Litecoin in 2014. To strengthen their network and in turn make the Litecoin network more safe the two cryptocurrencies can be mined together.
One of the reasons that made this cryptocurrency so popular is that transactions are validated much faster than Litecoin or Bitcoin.
What is a Doge?
It is an alternative cryptocurrency to Bitcoin (altcoin) that has its own network, so did not have an Initial Coin Offering (ICO). The coin has no total supply limit, the only limit is 5 trillion coins annually. At the time of writing the total number of coins in circulation is 125,652,078,627 DOGE and their market capitalization is $453,256,367 USD.
The fact that its supply of tokens is unlimited can cause its price to never rise as much as other cryptocurrencies such as Litecoin and Bitcoin that do have a limited supply.
How does DOGE work?
DOGE uses blockchain technology, which is a huge digital database that is responsible for storing the information of the transactions. Each of the Dogecoin transactions are stored in its blockchain, that is, in each of the nodes that make up its network. For that reason, the blockchain is decentralized.
The nodes of the network compete to confirm the transactions that are being carried out. To do this, enter a type of lottery in which they have to guess the code that is assigned to the newest block of transactions that is added to the blockchain. The node that manages to guess it is rewarded with 10,000 DOGE.
Every minute a new set of Dogecoin transactions is confirmed, therefore every new minute a node receives the reward.
The founders are Billy Markus and Jackson Palmer. Although both have disagreements regarding the future of the project, Markus is the most optimistic about the future of DOGE.
This cryptocurrency has not reached a significant price in the market but it has shown that it can fluctuate in decent percentages and could serve to give an acceptable profit margin to those who wish to trade with it. Recently, many people have been influenced to buy DOGE tokens after Elon Musk praised the project on Twitter (as he usually does), which tends to have a positive effect on the token’s price as well.