What is Dogecoin?
Dogecoin (DOGE) is a decentralized cryptocurrency that operates on an open-source platform. It is considered an alternative to established coins and has a reputation for being a humorous meme-inspired coin. The logo for Dogecoin features a Shiba Inu dog and was launched in December 2013.
Although initially created as a joke, Dogecoin’s blockchain technology has proved to have credibility. It is based on the code of Litecoin, and its notable features include its affordability and unlimited supply. Dogecoin uses the scrypt algorithm and can be traded on digital currency exchanges, with the option to store it on an exchange or in a Dogecoin wallet.
The History of Dogecoin Dogecoin was born from the idea of mocking the hype around cryptocurrencies. Its creator, Jackson Palmer, worked for Adobe Inc. in Sydney, Australia and made the first tweets about the coin in a comical manner. After receiving positive feedback, he bought the domain name dogecoin.com.
Meanwhile, Billy Markus, a software developer at IBM in Portland, Oregon, reached out to Palmer and received permission to develop the software behind Dogecoin. The coin was launched on December 6, 2013, and soon after, its value rose by 300%. This could have been influenced by China’s decision to restrict its banks from investing in cryptocurrency.
Dogecoin’s code is based on Luckycoin, which in turn is derived from Litecoin. Initially, the coin used a randomized reward for block mining, but it was changed to a static reward in March 2014. Dogecoin utilizes scrypt technology and operates on a proof-of-work system. During and after the cryptocurrency bubble of 2017-2018, Dogecoin saw a significant increase in value, reaching a peak of $0.018 and a market cap of over $2 billion.
However, like many other cryptocurrencies, its value fell with the market in 2018. In the summer of 2019, Dogecoin’s value rose again, coinciding with an overall increase in the crypto market. The coin also received a boost when it was listed on the exchange Binance. Many enthusiasts believed that Elon Musk, CEO of Tesla, had endorsed the coin through a cryptic tweet.
