What is Dogecoin?
Dogecoin is an open-source cryptocurrency, fully decentralized and anonymous, created by Billy Markus and Jackson Palmer. The logo of this coin is a well-known Internet meme depicting the Shiba Inu. Despite the fact that the basis for the creation of Dogecoin was Litecoin, developed in turn by modifying the Bitcoin program code, Dogecoin has a lot of differences from other cryptocurrencies. It is in the top 10 cryptocurrencies for mining and in the top 15 for market cap. Initially, the limit on the issue of coins was set at one hundred billion, but the creators decided to make the total supply unlimited. Another distinctive feature is the high speed of transactions despite the high circulating supply, achieved by reducing the time between adding blocks. Dogecoin has a practical application - initially, online users tipped Dogecoin on forums like Reddit. Now, network participants use it to make payments for various goods and services on the Internet.
How Is the Dogecoin Network Secured?
The security of the Dogecoin network is ensured by miners who process and validate transactions. Just like with any PoW cryptocurrency, the network hosts multiple nodes using computational power to solve mathematical equations.
As Dogecoin continues to gain exposure, there are more people willing to mine and trade this currency. By design of the PoW consensus mechanism, the more participants verify transactions, the more secure the network becomes.
What Makes Dogecoin Unique?
Dogecoin was the first meme coin, never intended to be something as influential as it is now. But as it exceeded everyone’s expectations, it reached a market cap of over 23 billion USD and a daily trading volume of close to 1 billion USD. DOGE started to grow aggressively after Elon Musk tweet. The first-ever satirical coin paved the way for numerous tokens, all trying to emulate Dogecoin’s success.
It should be noted that despite substantial price change (300% in value in 72 hours in 2013 or 800% in 24 hours in 2021), DOGE is still very affordable. Even at its best periods, the coin was valued at around 0.73 USD.