Some fans of Dogecoin, a cryptocurrency that began as a joke but has now grown to become one of the biggest cryptos in the world, would have you think that the statement above is all there is to know about Dogecoin.
They’d be right in a way. Dogecoin doesn’t require a great deal of thinking. People who like meme coins frequently purchase them and “hodl,” which is a crypto term for “don’t sell” until… something wonderful happens. Maybe until you get rich.
One of the popular crypto in 2021 is Dogecoin. For many investors, the question could be whether or not they are saying the name right.
The Correct Pronunciation of Dogecoin
Even though the name Dogecoin includes the word “dog” and the official mascot is a Shiba Inu dog, the correct way to pronounce it is “dohj coin,” according to Dictionary.com as well as its co-founder Jackson Palmer.
“Dohg koin” and “dog-ee koin” are two other ways to pronounce “Dogecoin.”
History of Dogecoin
It started out as a joke. Bitcoin was the first cryptocurrency. It was a great piece of technology that let anyone trade digital money with minimal charges and without asking anyone’s permission. However, Bitcoin’s open-source nature meant that its design could be replicated by anybody, and at one time, it seemed like every cryptocurrency out there was a Bitcoin clone.
The hilarious response to this trend is Dogecoin. It was made by software engineers Jackson Palmer and Billy Markus in December 2013. It’s a replica of Bitcoin (or, more specifically, Litecoin, which is similar to Bitcoin), and has a Shiba Inu dog on it. It’s usually talked about in silly ways that involve dogs and the moon.
Almost as soon as it started, Dogecoin gained a loyal fan base. As a result, it attracted individuals who were interested in the concept of cryptocurrency but needed a platform to poke fun at Bitcoin. Dog lovers flocked to it. It attracted people who weren’t very serious about crypto but still wanted to take part.
This is something that not everyone understands. Even Dogecoin’s co-founder Palmer stayed away from it. In 2018, Palmer said that Dogecoin’s skyrocketing price showed that the cryptocurrency market was too hot.
“I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn’t released a software update in over 2 years has a $1B+ market cap,” he said this in January 2018—and certainly enough, the cryptocurrency market crashed hard a few months later
Dogecoin, however, has managed to stay alive. This is partly, most likely, because it doesn’t need a lot of active management.
Bitcoin vs Dogecoin
Dogecoin advertised itself as an “exciting” version of Bitcoin, and its logo was a Shibu Inu dog. Dogecoin was presented in a way that fit the mood of the growing cryptocurrency community. Its scrypt technology as well as an unlimited supply made a case for a Bitcoin that was faster, more flexible, and easier for people to use.
Dogecoin is called an “inflationary cryptocurrency,” while coins like Bitcoin, which have a limit on how many coins can be made, are called “deflationary coins.” Every 4 years, the number of Bitcoins put into circulation through mining rewards is cut in half, and the rate of inflation is cut in half as well. This keeps happening until all Bitcoins are in circulation.
In 2014, the Dogecoin community raised $30,000 to send the Jamaican bobsled team to the Sochi Winter Olympics, and $11,000 to support the construction of a well in Kenya.
What is the point of dogecoin? DOGE is mostly used to buy things in stores and pay for services. More than 2,000 businesses already accept DOGE, and that includes the AMC theater chain via its mobile app.
Dogecoin, however, does not support smart contracts for decentralized applications like other blockchains (dApps). Holders of DOGE may now utilize cryptocurrency for games, non-fungible tokens (NFTs), and decentralized applications (dApps) thanks to the introduction of Dogechain in August by an independent development community. Dogechain is an Ethereum-compatible proof-of-stake blockchain overlay that sits on top of the Dogecoin blockchain. The project is not connected to the Dogecoin Foundation in any way. The Dogechain network is built on the private label version of the Polygon Edge platform.
Dogechain holders can pay for gas fees with DOGE, and the new DC data packet, which will let holders take part in governance, will be given away for free.
On September 7th, ChainPort made history by becoming the first inter-chain bridge to accept Dogechain.
“With ChainPort’s assistance, users can easily transfer tokens from several supported blockchain ecosystems to Dogechain,” said ChainPort. “Supported chains include Ethereum, BSC, Polygon, and Fantom, with additional native token support to be added soon.”
In other Dogecoin news, on September 12, the Dogecoin Foundation joined the wDoge decentralized autonomous organization (DAO) project being built by startup Blue Pepper to connect Dogecoin and Ethereum.
Miners are one of the few reasons Dogecoin is still alive today. Dogecoin is easy to mine because it is built on Litecoin technology, which is still a popular coin to mine, and it doesn’t take any extra work to mine both. So, most miners decide that they can make twice as much money by mining both coins.
The Dogecoin blockchain operates similarly to other major blockchains. A hashing method is used to connect blocks, and outputs may be spent. To put it another way, users can exchange their Dogecoins by making a transaction to an address that begins with DOGE.
Next, users who run nodes get transactions and make sure they are correct. Unauthorized purchases will be declined. Transactions that are valid are added to the blocks, which are then uploaded to the blockchain.
Dogecoin also uses the POW algorithm, which is also used by Bitcoin. Hashes are easy to figure out on any modern computer. A new hash can be made in less than a second, so there’s nothing hard about it.
Like the Bitcoin blockchain, the Dogecoin blockchain has a “difficulty” property that makes it harder to mine new blocks. Now, the hash that was formed has to conform to a certain pattern in accordance with the “difficulty” parameter.
In simple words, the harder it is, the less likely it is that two hashes will match. So, it takes more time to come up with a hash that works for this difficulty. This method is often referred to as “Proof of Work” because of this reason (PoW).
While a new Bitcoin block is mined every 10 minutes, miners on the Dogecoin network typically create a new block once per minute.