Dogecoin (DOGE) can now certainly be called a veteran of the cryptoworld. Once started as a memecoin to tease out the sometimes absurd excesses of the cryptocurrency market, the project is now a serious alternative to digital currencies.
Famous supporters of a cryptocurrency with a catchy dog logo include Tesla CEO Elon Musk and rapper Snoop Dogg.
In the following article, we explain everything worth knowing about Dogecoin and look at the most important data and facts.
We also explain why the cryptocurrency, often referred to as “memecoin,” has an exciting future and what ambitious plans are in development.
A brief overview of the most important features of Dogecoin
Billy Marcus and Jackson Palmer, who used to work at IBM and Adobe as software engineers, are in charge of the project.
The two developers wanted to create a simple decentralized payment method but also wanted to fuel the fast-growing cryptocurrency market with more and more projects.
Soon after it came out, Dogecoin had a steadily growing community and made a lot of noise because its price was going up by several thousand percent per year.
|founder||Billy Markus and Jackson Palmer|
|white paper||Yes, white paper|
How does Dogecoin work?
Dogecoin is an open-source peer-to-peer cryptocurrency written by its two founders in the C++ programming language. But this cryptocurrency, which came out in 2013, is not a complete copy. Instead, it is a fork that has been updated.
Technically, Dogecoin is similar to other cryptocurrencies in many ways.
Among other things, Dogecoin also uses a consensus mechanism based on Scrypt encryption. The computing power of the network’s participants is sufficient to mine new blocks. Initially, the project started with a maximum circulating volume of 100 billion DOGE.
However, just a few months after publication, this limit was significantly increased. Each block that is mined gives the miner 10,000 DOGE, and unlike bitcoin mining, there is no splitting in half.
What problem does Dogecoin solve?
Billy Marcus and Jackson Palmer founded Dogecoin with a crystal-clear vision.The playful, almost childlike look of the cryptocurrency should make it popular quickly, and its simple, uncomplicated technical foundation should make it easy for everyone to pay.The plan has worked, and Dogecoin is still valued for its fast, cheap, and uncomplicated payments.
At the start, the project had nothing to do with new technologies like smart contracts, DeFi, and NFT. It should be one of the first options for making fast payments in a network without a central point of control.
How does Dogecoin solve the problem?
While many other cryptocurrencies are advertised with crystal-clear usage scenarios, Dogecoin takes a different approach. Its deliberate external presentation as a “fun currency” makes the cryptocurrency so flexible in its development.
To this day, experts debate whether Dogecoin has a viable use case. Many even consider it an important competitive advantage.
Dogecoin is simply part of cryptocurrency history, and it’s hard to imagine life without it. At the same time, technically, the project stands on solid ground.
Dogecoin Foundation director Timothy Stebbing addressed the community in several tweets in 2021 and presented a real-life example of how to use cryptocurrency.
He paid for his coffee at a café in DOGE and explained to the artist in attendance how he could create his wallet in seconds and sell his work to buyers for DOGE.
This has led to a whole new sales channel for the artist, who can easily sell his work online.
Payments in DOGE are fast, and the corresponding payment methods are understandable even to non-professionals. This is why this cryptocurrency is considered particularly convenient for beginners.
It’s not a traditional way to save money, and the fact that you can buy an unlimited amount makes it very inflationary. So, Dogecoin is perfect for making payments and is easy to use in all parts of a business. This makes the coin a real problem-solver.
The economics of DOGE tokens
The tokenomics of Dogecoin are quite interesting and a bit unusual in the crypto world. Shortly after its release, the founders removed the maximum limit of the DOGE token.
So, there is no limit to the number of DOGEs that can be made, and in theory, an infinite number of DOGEs can be made.
Every minute, 10,000 new DOGEs are created, which equates to 14,400,000 DOGEs per day. In a year’s time, there will be about 5 billion DOGE, which will be added to the current 132 billion tokens.
This corresponds to an inflation rate of 3.87%, which, conversely, falls year on year as the number of new coins remains the same and the total supply increases.
All DOGE issued at the start of the blockchain went on sale without a private sale or presale.
Unlike many other projects, the founders did not reserve a portion of the tokens for consultants, large investors, or partners, and each coin was directly available to the public.
Cooperation with Dogecoin
Dogecoin is a popular way to pay for things because it’s easy, and some stores already accept it. The most important partner is undoubtedly the electric car maker.
Elon Musk is considered a big fan of the crypto project and only accepts DOGE as the sole cryptocurrency for its goods.
There is a whole list of other global corporations and brands that accept DOGE as a means of payment.
Conclusion and perspectives
1 DOJ = 1 DOJ. This wisdom is as closely associated with Dogecoin as the digital currency’s famous logo.
In record time, the most successful Shiba Inu in the crypto world has won the hearts of investors. Dogecoin has been called a “shitcoin” for a long time, but it is now one of the ten largest cryptocurrencies based on market capitalization.
A look at the project roadmap also shows that Dogecoin’s ecosystem still has a lot to change.
For now, however, Dogecoin lives largely off the hype. Self-proclaimed fans like Elon Musk are steering the course, even if there are still plenty of question marks due to the lack of applications.
However, those in charge of the project are trying to create a common standard to allow the ecosystem to grow steadily in a natural way.