Dogecoin is an open source P2P cryptocurrency created by Billy Markus, an IBM software engineer, and Jackson Palmer, an Adobe software engineer. It features the Shibu Inu (Japanese dog) as its logo, a cute display that has made it popular among Reddit's crypto community. Dogecoin's protocol is based on the existing cryptocurrency Litecoin, using scrypt technology in its proof-of-work algorithm. The digital currency Dogecoin started out as a joke, but now has a market cap of nearly $85 billion and growing.
What is the history of Dogecoin ?
1, 6 December 2013: Due to the popularity of digital currencies, a large number of people scrambled to invest in cryptocurrencies or start mining them. Software engineers Billy Markus and Jackson Palmer tried to create a peer-to-peer digital currency to make fun of digital currencies like Bitcoin. They then launched Dogecoin on December 6, 2013, which was in unlimited supply and low cost. The goal was to be accessible to everyone, not just limited to crypto experts. In the early stages, users started using dogecoins as tips to reward online users.
2, 19 December 2013: The value of Dogecoin rises by almost 300% in 72 hours.
3, 25 December 2013: The online cryptocurrency wallet platform Dogewallet is hacked and millions of coins are stolen.
4, January 2014: Dogewallet's trading volume exceeds that of all other cryptocurrencies combined.
5, 2015: Jackson Palmer leaves the cryptocurrency community.
6, April 2020: Elon Musk tweets that "dogs are barking on the moon", which causes the value of dogecoin to rise by over 600%.
7,2021 January: Encouraged by Elon Musk, Dogecoin rises by more than 800% to $0.07 in 24 hours.
8, 9 May 2021: SpaceX's hitchhiking mission to the moon is funded entirely by Dogecoin.
How does Dogecoin work?
1, Dogecoin is based on blockchain technology, similar to Bitcoin, Litecoin or any other on-chain digital currency. Dogecoin's blockchain network uses cryptography to secure all transactions. Dogecoin miners are also rewarded by solving complex mathematical equations to process transactions and record them on the Dogecoin blockchain.
2, People can theoretically use it to buy products, but with its unlimited supply and millions of new dogecoins being rewarded to miners every day, the value could fall - it's essentially an inflationary currency.
How do I mine Dogecoin?
Dogecoin uses a 'proof of work' mechanism similar to Bitcoin and Litecoin, a process known as 'mining' where individuals or organizations compete to calculate mathematical problems in order to add new blocks to the blockchain ledger using specialized computer equipment in order to earn Dogecoin Rewards. In the early days, it was easy to mine dogecoins using your own laptop or PC. However, as dogecoins became more popular, the mining process became more difficult. Typically, various types of hardware can be used to mine dogecoins, including
1, Computer processors: This is not an ideal way to mine due to the very low efficiency.
2, Graphics cards (GPUs): GPUs are better suited to mining dogcoins than CPUs.
3, Scrypt ASIC miners: the best choice for mining DOGE as they are specifically designed for mining
Mining software such as EasyMiner\CGminer\CudaMiner\CPUMiner\MultiMiner is essential for mining dogcoins, regardless of the type of miner you use. Once you have chosen your hardware and software, you will need to create a wallet that you can use to collect your dogecoins and then you can launch your mining operation to mine them. Alternatively, you can simply join a mining pool or sign up to a cloud mining service to mine dogecoins.
What are the pros and cons of Dogecoin?
Pros.
1, The confirmation time is shorter than Bitcoin, taking only about 1 minute.
2, The transaction fees for dogecoins are very low.
3, Due to its low value, many social platforms accept it to pay for content creators.
Disadvantages.
1, It is an inflationary currency, limiting dogecoin as a means of investment.
2, There are no smart contracts, limiting its use.
3, Security issues, as it is not currently supported by technology.
