Dogecoin is A digital currency made as a joke; But now, with a market value of several tens of billions of dollars, it is at the forefront of the digital currency market, big people like Elon Musk support it and have plans to develop it. The popularity of Dogecoin can be attributed to its almost good ranking in the digital currency market and its extremely low price, which makes many people invest in it with the dream of getting rich. But it’s not all about investing; Some prefer this digital currency for its own sake and the purpose behind it. If you are also interested in Dogecoin or want to know where this project came from and how to safely invest in it, this article is written for you.
What is Dogecoin?
Dogecoin, abbreviated as “DOGE” in plain language, is a digital currency and network for transferring value (money); Just like Bitcoin. However, this digital currency has many differences from Bitcoin and other digital currencies, the most important of which is the primary purpose; Dogecoin was created as a joke. In December 2013, the price of each Bitcoin unit reached $1,000 for the first time; The world was now widely looking at digital currencies. At the same time, when about four years had passed since the birth of Bitcoin, a programmer named Billy Markus organized his digital currency. With the help of Adobe product manager and data analyst Jackson Palmer, Dogecoin was born in the last days of 2013.
The name and idea of the Dogecoin logo are taken from the Shiba Inu dog breed. Before the creation of Dogecoin, the word “Doge” and the image of the Shiba Inu dog were known as memes or internet jokes, and people used these images to write their funny texts.
Therefore, Dogecoin, unlike other digital currencies, was not created for a specific purpose this digital currency is now classified as a “meme coin” or “laughing coin”. Among other digital currencies in this category, Shiba Ino digital currency can be mentioned. Like Bitcoin, Dogecoin is based on proof of work (mining), with the difference that eventually only 21 million Bitcoin units will be mined; But in the case of Dogecoin, to promote its use as a payment method (money), there is no supply limit and therefore its units can be issued in an unlimited manner.
What is the use of Dogecoin?
Infrastructure Technology Dogecoin is a derivative of the Litecoin network; This means that all changes and updates made to Litecoin will also apply to this currency. The coin was never intended to introduce new technology or do anything new to the blockchain; This currency is just a digital currency trading platform in the shape of a dog!
For example, when a person wants to thank another user on Reddit and send them 10 cents, they can use Dogecoin; If this user wants to use Bitcoin, they should send something like 0.000006 Bitcoin; But the same amount should be 6.02 Doge. These numbers can have a psychological effect on consumers. Additionally, these transactions are faster and cheaper than Bitcoin. Because of this, this currency has become the most popular token used as a reward for other users. On Twitter and Reddit, it is common for users to reward each other for interesting content using DOGE.
The popularity of Dogecoin
The popularity of this digital currency has shown itself from the beginning; Thus, a month after the introduction of the project, the official website of this project was visited more than one million times. This reputation is so good that some Dogecoin enthusiasts have decorated all their personal and household items with its logo. If you want to present some important reasons for the popularity of this meme coin; the Following are reasons:
1.Funny the name and logo
Dogecoin’s catchy name and logo will catch everyone’s attention. many experts believe that the humor in the name and logo of this digital currency is ultimately the driving force that will attract more people to the project, which is probably why fans of this meme coin gave it away. Nicknamed “Private Money”.
2. Delivery at the right time
At the end of 2013, just as the debate about the ban of bitcoin in China was heating up and the price of bitcoin was in a downward trend after breaking records, Dogecoin appeared on the social networking site Reddit and attracted many people to invest in it. On December 18, 2013, while bitcoin lost half of its value from its peak, the price of Dogecoin rose 450% in one day.
3. Applying for charity and financial support
Members of the Dogecoin community have brought the name of the project to the mainstream media many times, raising funds for charity and support, And this topic has largely contributed to the stability of the growth in popularity of this coin.
4. Approved by world famous people
Another factor that has significantly contributed to Dogecoin’s global popularity in recent years is the growing list of influential celebrities who have repeatedly expressed their support for the cryptocurrency on social media. Carole Baskin, star of Netflix’s Tiger King, Gene Simmons, lead singer of Kiss, billionaire Mark Cuban, former bodybuilder Kai Greene, and Snoop Dogg and Lil Yachty. (Lil Yachty), an American rapper, is on this list. The most important celebrity influencing DogeCoin is none other than Tesla CEO and the richest man in the world, Elon Musk.
How does Dogecoin work?
The blockchain of this currency can handle around 30 transactions per second, which is higher than Bitcoin. The coins of this project are produced through the mining process, and in the consensus algorithm, which is Proof of Work, the script mechanism is used. Blockchain scripts have fewer hashes (a measurement of computing power per second) and use less energy than the SHA-256 Bitcoin mining algorithm. Dogecoin is indirectly based on the code of the first digital currency, Bitcoin.
Specifically, this cryptocurrency was created as a hard fork of the defunct Luckycoin, which itself was a major fork of Litecoin (LTC). Litecoin itself is a fork, and being derived from Bitcoin, it is known as the first hard fork in the history of digital currencies. As such, it shares many functions with Bitcoin and hard forks.
Like the Bitcoin blockchain, Dogecoin blockchain contributors use their resources and computing power to secure the network, verify transactions, and create new blocks. The only difference is that Dogecoin uses a “lightweight” architecture. This architecture allows Dogecoin to process transactions much faster than Bitcoin. DOGE network participants can use their resources and computing power to mine ,DOGE, by solving mathematical equations to generate new blocks and validate transactions.
Blockchain for Dogecoin
Like Bitcoin, Dogecoin uses blockchain technology to maintain decentralization. In simple terms, a blockchain is a digital ledger whose information is shared for all to see, so no one can dispute the authenticity of what is written on the blockchain because everyone has a copy of it. Members of the Dogecoin network, which are called nodes and include miners, keep a record of transactions. When someone wants to send some Dogecoin to the software wallet, they notify the node by sending their request in the form of a transaction. Nodes browse their digital ledgers and obtain the sender’s balance to ensure that the transaction is possible.
A digital notebook of nodes consists of sheets known as “blocks” in the blockchain, and information and data are kept inside them. If the transaction does not conflict with the rules of the network, it is recognized as valid, and like a factory production line, it waits to enter the next stage, which is the transaction confirmation process.
Elon Musk and Dogecoin
You may also have heard of Elon Musk’s tweets and support for Dogecoin. These supports made the price of Doge Coin reach its highest value. Every tweet by Elon Musk about Dogecoin, be it a funny and funny meme, or a picture of a Shiba dog on the moon with Dogecoin, created a pump in the cryptocurrency market and especially the price of Dogecoin. It is interesting to know that in 2019, Dogecoin developers elected Elon Musk as the CEO of Dogecoin. This seems to have been the purpose of Earon Mask to support the development of Dogecoin, and he seems to have advised the development team on the development of Dogecoin. We have to wait and see what changes will happen to this coin in the future so that it becomes a better version.
How to mine Dogecoin?
I mentioned that the Dogecoin network algorithm is proof of work (PoW) and mining hardware, and due to the same technology of this network as the Litecoin network, users can mine both coins in the mining system. The process of mining is called adding new blocks to the network. But only trusted people can add new blocks to the network. Systems that have high processing power and can solve complex mathematical equations.
The SHA-256 method is used in the mining process of Bitcoin, which is the most popular cryptocurrency for mining. Using this protocol makes it more difficult and expensive to mine Bitcoin coins and requires more energy. Previously, it was possible to use graphics cards (GPU) and powerful computer processors (CPU) to mine Bitcoin; But for now, only mining devices (ASICs) can be used to generate this cryptocurrency. Using the script protocol when mining Dogecoin will simplify and speed up the mining process.
Mining using the script algorithm requires much less processing power than other methods, and you can easily participate in this process with conventional computer systems. Therefore, mining DOJ requires less cost and energy and is much easier than mining other PoW-based digital currencies such as Bitcoin. The mining fee for this cryptocurrency is currently higher than Bitcoin.
Dogecoin future forecast and analysis
The most important factor in determining the future value of the Dogecoin cryptocurrency is its acceptance in society and among investors. To give an idea about the future of Dogecoin digital currency and its analysis, several points should be considered:
- Technical analysis that identifies existing patterns and trends by looking at Dogecoin price charts and trading volumes.
- News and events that change the price of DOGE by influencing market sentiment and demand. The support of personalities like Elon Musk is not without influence in this affair.
- Pros and cons that show Dogecoin’s strengths and weaknesses, showing its opportunities and challenges. Fast and cheap transactions, active and informal community, no limits to provide are one of the advantages of Dogecoin cryptocurrency.
- Due to these factors, it is not possible to definitively or accurately predict the Dogecoin price; But some sources, using statistical methods or artificial intelligence algorithms, offer some possibilities as a recommendation to invest in this cryptocurrency or sell it.
Security in buying Dogecoin
Dogecoin is a peer-to-peer open digital currency that uses the Proof of Work algorithm. Miners solve complex mathematical problems to process transactions in this algorithm and make sure everyone agrees on the validity of the transaction. By mining a new block, miners are rewarded in the form of Dogecoin tokens (DOGE); These awards are aimed at protecting online security and encouraging transaction flow.
The security of the Dogecoin network is therefore provided by nodes called miners. By adding operations to each block, these lights add it to the network after the new block is closed. Also, the coding of the Dogecoin network is very similar to the Litecoin blockchain and somehow owes its security to Litecoin.
The best Dogecoin Wallet
To store and manage your Dogecoin coins, you need a secure wallet with high access and a smooth and engaging user experience. When looking for the best Dogecoin wallet, it is essential to choose a wallet that meets your needs from the best Dogecoin wallet and includes high security, ease of use, availability, and the ability to send and receive cryptocurrency. Some of the best Dogecoin wallets:
- Ledger Nano S
Remember, as with any other type of investment, you are responsible for keeping your capital safe and secure, so before choosing a Dogecoin wallet, thoroughly familiarize yourself with its features and make sure you manage it properly.
Dogecoin is a cryptocurrency developed in 2013, this cryptocurrency is based on blockchain technology, and the goal of its development is to create a fast digital currency with the lowest money transfer fees. Dogecoin was originally created to poke fun at the cryptocurrency craze; But now it has become one of the leading cryptocurrencies in the market. Dogecoin may lack important features or aim to change the blockchain; But it has one of the fastest growing cryptocurrency communities. Although Dogecoin’s founder left the project a few years ago, the cryptocurrency has continued to grow thanks to its passionate community.
What is the total number of Dogecoin units?
It was initially assumed that the total number of Dogecoin units would be limited to 100 billion units, but after this cryptocurrency takes a good position in the cryptocurrency market, its developers decided that the mining of Dogecoin units would continue indefinitely.
What is Dogecoin used for?
Dogecoin is used as a reward system on Reddit and Twitter to reward users who post diverse, interesting and popular posts.
Is Dogecoin a good investment?
Dogecoin price history shows that this digital currency is growing rapidly. But according to analysts, consumers should consider Dodge as a long-term investment. In any case, before taking any action to buy or sell this cryptocurrency, it is better to monitor the market conditions carefully.