Currently, according to the creators themselves, Billy Markus & Jackson Palmer, Dogecoin is considered by them as an electronic currency for the Internet community and they have no goal to compete with the titans of the e-commerce market. Nevertheless, the developers are constantly working to improve the convenience of settlements using Dogecoin on the vastness of the World Wide Web.
As a symbol of Dogecoin, the developers used the image of a red dog of the Japanese breed Shiba Inu – a meme that at one time flooded the Internet. The name of the cryptocurrency actually translates into Russian as “Dog’s Coin”.
Another cryptocurrency, Litecoin, was taken as the basis for the creation of Dogecoin . Despite the fact that there are very few differences between the two currencies, their value currently differs quite a lot. For this reason, Litecoin and Dogecoin are rarely linked together at this time.
Dogecoin was not originally planned by the developers as a serious investment project. The main goal of the creators was in a sense to amuse the Internet community, more like a “funny” coin. Nevertheless, the comic currency quickly gained popularity and increased significantly in price, entering the ten most popular electronic currencies.
Distinctive features of Dogecoin from other cryptocurrencies
Despite the fact that the basis for the creation of Dogecoin was the Litecoin network, developed in turn by modifying the Bitcoin program code, Dogecoin has a lot of differences from other cryptocurrencies. Common to all virtual currencies are the principles of functioning based on the complete decentralization of the network, the use of the Proof-of-work protection system and methods of processing transactions.
Among the main features of dogecoin that distinguish it from other cryptocurrencies are the following:
- To encrypt data on the network, the Scrypt algorithm is used, instead of the standard SHA-256, which makes mining this cryptocurrency very simple and does not require complex equipment.
- Initially, a limit on the issue of coins was set at one hundred billion, but in the future, the creators decided to make the issue unlimited. This unlimited supply was the reason that Ripple CEO is criticized Dogecoin.
- Very low transaction fees compared to other network fees. As a rule, the amount is not more than one cent, while on the Bitcoin network, the commission can be up to $ 10.
- High transaction processing speed achieved by reducing the time between adding blocks.
- The low cost of coins allows any interested user to purchase them, regardless of the amount of capital he has.
- Dogecoin has a practical application – network users use it to make payments for various goods and services on the Internet. Users from all over the world can buy dogecoin with paypal. In addition, the circulation of Dogecoin is not prohibited even in those countries where Bitcoin cannot be used.
- Dogecoin coins can be mined without spending significant funds and without using complex expensive equipment.
According to its creators, the key goal of the cryptocurrency is to keep one hundred billion coins in constant circulation. After the emission of 100 billion coins, the issue continues and the miners receive the required reward. This allows you to keep the required number of coins at a constant level, compensating for lost wallets and coins lost in any other way.
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