It was around December 2013 that Bitcoin price could hit the cap and grow above $1000. By that time, the world started to take cryptocurrency seriously. The Dogecoin creators were thinking that cryptocurrency is becoming too serious. In fact, they think in a way that cryptocurrency should have some fun as well. As a result, they decided to create their own coin. The coin, which they called Dogecoin.
Dogecoin launched on 6 Dec, 2013 and very soon the internet users got very excited by this new coin. What started as a little joke, today is a huge crypto community. In fact, Dogecoin is known and could have success for its charitable donations and other good causes.
What is Dogecoin?
Dogecoin is a peer-to-peer open source cryptocurrency created by Billy Markus and Jackson Palmer. It categorizes as an altcoin, which the creators chose the Japanese dog named Shibu Inus as its logo. Although it was casual in its approach, in a short time, it could gain wide acceptance for online transactions. In fact, it’s a p2p technology that enables fast payments across the globe.
However, Dogecoin is one of the many cryptocurrencies that have been launched after the success of Bitcoin, it could rise higher among others. It uses scrypt technology as a proof-of-work scheme. The block time in its network is 1 minute and the difficulty retarget time is 4 hours. The number of its coins doesn’t have limit, so, the supply of coins would remain uncapped. As a result, Unlike Bitcoin, Dogecoin is an inflationary coin.
In addition, Dogecoin is accessible with low entry barrier, which makes it suitable for small transactions. As a result, it became popular to use it to pay tips on the internet for sharing and creating great content.
What are the benefits?
Although Dogecoin is based on Litecoin’s scrypt protocol, it offers faster transactions and confirmations. In fact, its block time is just 1 minute in compare to Litecoin, which is 2.5 minutes.
Inflationary feature is the significant difference between Dogecoin and other cryptocurrencies. In simple words, deflationary coins have a hard cap, which encourages people to hold it in order to make a profit when the price pumps. When the hard cap is reached, it would not be profitable anymore to mine the coin. But on other hand, inflationary coins like Dogecoin, ensure mining can be maintained. Furthermore, the lost coins could get replaced.
Not only the fast transactions and negligible transaction fees make it special, but also its community. The users number is huge and they all are passionate about promoting the coin. In fact, they believe that it is the suitable and perfect coin for those, who are looking to dip their toes into the crypt world.