Dogecoin is an open-source digital currency that is used by Internet users worldwide.
The framework is based on Litecoin, meaning that all modifications and updates made to it will also be made to Dogecoin.
The initial aim of the coin was not to create an innovative technology or something novel and impressive, but rather to create an easy to use transaction platform.
Dogecoin has a strong and loyal userbase who use Doge as a currency rather than just hold it as a speculative asset. Although, like other cryptocurrencies, Dogecoin can definitely be held as an investment or traded in pursuit of making a profitable return.
What is it used for?
Like other cryptocurrencies, Dogecoin can be held as an investment or traded in the hopes of making a profit. Most Dogecoin fans, however, use the altcoin as a currency, taking advantage of its very low transaction fees, fast transaction times, and easy-to-use platform.
Dogecoin has also become the most popular coin with which to tip people over the internet to thank them for providing interesting content. In essence, it’s a digital currency that people can actually use rather than just invest in.
Benefits of Dogecoin
Although Dogecoin is based on Litecoin’s Scrypt protocol, its block time is only one minute compared to Litecoin’s 2.5 minutes. This means Dogecoin offers faster transactions and confirmations.
People who want to transfer from one wallet to another will often use doge to save money. You heard me right people who use non-meme coins still use doge for other purposes. Doge is easily recognizable trademark and people love it. It has one of the best most friendly communities ever!
How Does Dogecoin Work?
One thing that separates Dogecoin from the majority of other cryptocurrencies is that it is an inflationary, rather than deflationary cryptocurrency.
Bitcoin and the majority of other cryptocurrencies that can be mined are created with a hard cap on the supply of coins.
How Does Dogecoin Mining Work?
Mining Dogecoin is like a lottery. To play the lottery you have to do some work. Well, actually your computer (or node) has to do some work! This work involves the confirming and checking of transactions.
Lots of computers work on the same block of transactions at the same time but the only one can win the reward of new coins. The one that earns the new coins is the node that adds the new block of transactions to the old block of transactions. This is completed using complex mathematical equations.
The node that solves the mathematical problem first wins! It can then attach the newly confirmed block of transactions to the rest of the blockchain.
Most cryptocurrency mining happens this way. However, Dogecoin mining differs from other coins in several important areas. These areas are;
Algorithm: Each cryptocurrency has a set of rules for mining new currency. These rules are called a mining or hashing algorithm.
Block Time: This is the average length of time it takes for a new block of transactions to be checked and added to the blockchain.
Difficulty: This is a number that represents how hard it is to mine each new block of currency. You can use the difficulty number to work out how likely you are to win the mining lottery. Mining difficulty can go up or down depending on how many miners there are. The difficulty is also adjusted by the coin’s protocol to make sure that the block time stays the same.
Reward: This is the amount of new currency that is awarded to the miner of each new block.
How to buy Dogecoin
Dogecoin is traded on more than 50 exchanges around the world. Most exchanges don’t enable you to buy DOGE with fiat, so you’ll need to buy a cryptocurrency that is listed in a pairing with DOGE and then trade it.
You can store Dogecoin in your Jeton Wallet. Download the app or Sign Up on the desktop version.