When the internet was awash with photos of Shiba Inu (an adorable dog from the Comic Sans captions), no one thought that it was the beginning of a new Cryptocurrency. The dog symbol became the face of a new Cryptocurrency that has now won the hearts of many; Dogecoin. Here is a closer look at Dogecoin to establish its founders, their mission, and mode of operations.
What is Dogecoin?
Dogecoin is a decentralized digital currency that enables users to send cash online. It sets itself from others because of its amazing developer community that always works creatively to take the currency to the next level. Its enthusiastic user base has made the currency change the face of current blockchain platforms. Everybody is now starting to think that joining is indeed possible and beneficial.
Dogecoin was founded by Billy Markus in 2013 who wanted to change the face of cryptocurrencies. Since the formation of Bitcoin in 2008, the world of cryptocurrencies remained a mystery. Five years after Bitcoin was formed, the common perception was that cryptocurrencies are avenues for fraudsters and drug dealers. When Palmer of Adobe Systems joined the system by purchasing some coins, its outlook started changing.
On 19th December of 2013, Dogecoin value jumped with more than 300% in only 72 hours. This was a unique time when other cryptocurrencies such as Bitcoin were reeling from the decision by most Chinese banks to block investment in the Bitcoin. Many people thought that Bitcoin was doomed and jumped to Dogecoin as an alternative. However, Dogecoin fell with 80% in the subsequent 72 hours because of excessive mining.
How does Dogecoin work?
Since its inception, Dogecoin has made significant progress. However, it is yet to reach the levels of other cryptocurrencies such as Ethereum and Bitcoin. Dogecoin uses a hashing algorithm to create complicated mathematical problems that power the platform’s proof-of-work model.
To start using Dogecoin, you need you need to start by downloading its wallet from its home page. To make the transactions extra anonymous and fast, Dogecoin also applies Scrypt. Scrypt was designed to help prevent the mining techniques applied by some users to gain more control in other top currencies such as Bitcoin. The main disadvantage of using Scrypt is its demand for more computing power than the traditional SHA-256 algorithm.
If you want to use Dogecoin for mining, there are two ways of doing it; solo mining or mining pools. Mining entails using your computer to solve a mathematical puzzle or completing a block. Once you get the answer, a reward is given in the form of Dogecoin. Solo mining involves trying to solve the puzzle on your own. However, it is very difficult, and many people prefer to work in groups called mining pools. It is important to try and evaluate the mining pools in the platform to ensure that only the highly reliable ones are considered. For example, it is advisable to consider only the pools that are online most of the time.
The main features of Dogecoin
These are users who join the network but opt to mine Dogecoins as teams as opposed to individuals. By mining in pools, it is easier to crack more mathematical puzzles and enjoy higher rewards.
This is the most important thing that every new user requires to start using the platform. You install it on your computer to start accessing the network and mining coins.
This is one of the latest hashing technologies such as blake2s and Lyra2rev2 to help in distributing coins fairly. It helps to drive the proof of work consideration to help users make more without edging closer to holding majority coins on the platform.
This is one of the most important technologies that Dogecoin team applies to keep the system secure. By making it harder to win mining monopoly, the Dogecoin blockchain remains safe because any attacker can only succeed by hitting more than 50% of the nodes.
Pros of using Dogecoin
- Dogecoin runs on Scrypt that allows users to carry merged mining. This means that users in the Dogecoin platform are free to compete in verifying transactions (mining) even in other currencies.
- By allowing users in the network to carry multiple tasks even in other currencies, Dogecoin is seen as a more valuable and reliable option. You only need to understand the mining process in various cryptocurrencies to earn more.
- Dogecoin is a highly secure blockchain platform because of the stability of its coins.
- While people who are interested in higher financial returns might be skeptical about Dogecoin, the overall risk involved is very low. It is, therefore, a perfect point for people who want to start trading or using cryptocurrencies.
Cons of using Dogecoin
- Dogecoin systems are not completely secure. Reports of break-ins and loss of millions of coins are not uncommon. After the first attack in December 2013 when Dogecoin lost millions of coins, many investors have remained skeptical about the security of the platform.
- Dogecoin uses SHA-256 algorithm that requires more power to run compared with the traditional hashing technology.
- A lot of people have expressed their concerns about the low value of Dogecoins. This problem arises from the high supply of coins into the network.
Where to Buy and Sell Dogecoin in Australia?
Crypto Currency for Fun recommends buying Dogecoin at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Dogecoin and they offer Instant Delivery or your coins right into your account.
Though Dogecoin presents a new way to look at cryptocurrencies, its low coins value has been a major undoing. Many people who want to invest in serious blockchain technologies would opt to consider a more stable Cryptocurrency that guarantees some results.