What is Dogecoin?

What is Dogecoin? Its history is unique

Posted on

Dogecoin was created by programmer Billy Markus from Portland, Oregon, who hoped to make a fun cryptocurrency that could reach a wider spread than Bitcoin. In addition, he wanted to distance himself from the controversial history of bitcoin’s background, especially its connection with the online drug market Silk Road.

At the same time, Jackson Palmer, a member of Adobe Systems’ marketing department in Sydney, was encouraged on Twitter by a student at Front Range Community College to make the idea a reality.

After receiving several statements on Twitter, Palmer purchased the dogecoin.com domain and added a splash screen, which featured the coin logo with Comic Sans text. Markus saw a related site in an IRC chat room, and began working on creating currency by partnering with Palmer.

DogecoinMarkus is based on Dogecoin in existing cryptocurrencies, with Luckycoin equipped with random rewards received for block mining, although this behavior later changed to static block reward in March 2014. In turn, Luckycoin is based on litecoin, which also uses its scrypt technology in the algorithm as proof-of-work. The use of scrypt means that miners cannot use SHA-256 in bitcoin mining equipment, and that dedicated FPGA and ASIC devices are used for complex mining.

Dogecoin was officially launched on December 8, 2013. The Dogecoin network was originally intended to generate 100 billion Dogecoins, but later, it announced that the Dogecoin network would generate unlimited Dogecoins.

On December 19, 2013, the value of Dogecoin jumped nearly 300 percent in 72 hours, rising from US $ 0.00026 to $ 0.00095, with a volume of billions of Dogecoins per day. This growth occurred as Bitcoin and many other cryptocurrencies recovered from China’s decision to prohibit Chinese banks from investing in Chinese Yuan into bitcoin. Three days later, Dogecoin had its first major accident with a drop of up to 80% due to the limitation on the large mining pool at that time very little for mining coins.

On December 24, 2013, The Reserve Bank of India warned users of Dogecoin and other cryptocurrencies of the risks associated with them. On December 25, 2013, the first major dogecoin theft attempt took place, millions of coins were stolen / hacked on the Dogewallet wallet online platform. The hacker gained access to the platform filesystem and modified his send / receiver page to send any and all coins to a static address.

This incident made Dogecoin the most mentioned altcoin on Twitter. To help those who lost funds on Dogewallet, Dogecoin users started an initiative called “SaveDogemas” to help donate coins to those who lost. About a month later, enough money was donated to cover all the coins that were lost.

DogecoinAs of January 2014, Dogecoin’s trading volume soon surpassed bitcoin and all other cryptos.

As of January 25, 2015, Dogecoin has a market capitalization of USD 13.5 million.

April 2015 Jackson Palmer announces he is “retired and absent” from the cryptocurrency world

DOGE Coin is a cryptocurrency that displays a Shiba Inu dog image and the name “Doge” meme is used on the internet as its logo. Introduced as a “joke currency” on December 8, 2013, Dogecoin quickly developed its own online community and reached a capitalization of US $ 60 million in January 2014 and as of March 2016 it has a capitalization of US $ 22.2 million.

Read also:  What is eCash Coin (XEC)? Changes from BitcoinCash ABC (BCHA)

Compared to other cryptocurrencies, Dogecoin has a fast development, at the beginning of production as many as 100 billion coins have been circulating until mid-2015 with an additional 525.6 billion coins every year. As of June 30, 2015, 100000000000 Dogecoin has been mined.

Although there are several major commercial applications, it acts as a currency and has acquired transactions as an internet tipping system, where social media users provide tips in the form of Dogecoin to provide interesting or important content. Many Dogecoin and cryptocurrency users, use the phrase “For the month!” to illustrate the sentiment towards the increase in the value of this coin. Thanks to crowdfunding efforts, Dogecoin could reach its golden era representing cryptocurrency and reach the surface of the Moon in 2017.

Commercial Use
Several online exchanges offer DOGE / BTC and DOGE / LTC pairs on trading exchanges. Three exchanges, Mengmengbi, Bter and BTC38, offer DOGE / CNY trading.

On January 8, 2014, AltQuick.co was the first to launch the Doge exchange with / USD.
On January 30, 2014, in Canada the Vault of Satoshi also announced DOGE / USD and DOGE / CAD.

In February 2014, the Hong Kong Asia exchange NexGen announced that it would support the trading of Dogecoins in all major currencies. China based exchange BTC38 also added to their support on the Dogecoin exchange by increasing the market cap by more than 24 hours.

On the first day of trading, Dogecoin is the two currencies traded on the platform, after BTC.
In September 2014, in the UK Yacuna started offering DOGE / EUR and DOGE / GBP trading.

As of January 31, 2014, the trading volume on the major exchanges was valued at $ 1,050,000 USD. The market cap is USD $ 60 million. Three exchanges accounted for a portion of the volume: Bter (60%), Cryptsy (23%), and Vircurex (10%). The currency pairs being traded are
Doge / BTC (50%),
Doge / CNY (44%)
Doge / LTC (6%).
DogecoinPhysical trading, a real item in exchange for Doge, takes place on online communities such as Reddit and Twitter, where users often share eye-related information.
On 23 December 2013, Tristan Winters of the online journal Bitcoin Magazine discussed what was needed for Dogecoin to replace bitcoin.

First Dogecoin ATM demoed Coinfest in Vancouver in February 2014. Two bitcoin ATMs supporting Dogecoins and other altcoins opened in Tijuana, Mexico on March 17, 2014.

Dogecoin has also been used to try to sell houses, and has been used in the pornography and poker industry.

Doge’s mobile app, web app, and site creators Katia Eirin and Bennett Wong share tips on Dogecoin for maintaining their website.

Dogetipbot is a cryptocurrency transaction service used on popular sites such as Reddit and Twitch.tv. This allows users to send Dogecoins to other users via commands via Reddit. The Reddit service was launched in 2013. Comments and support for Twitch.tv and Twitter have been discontinued. The “dogetipbot” trademark was officially registered on August 19, 2014. In November 2014, the development team behind dogetipbot raised $ 445,000 in venture capital funding.

Read also:  What is Binance Coin (BNB)?

Like bitcoin and litecoin, Dogecoin functions using Cryptography as a public key, where the user generates a cryptographic key pair: one public and one private. Only the private key can decode the information encrypted with the public key; Therefore the key owner can distribute the public key openly without fear that people will be able to use it to gain access to the encrypted information. All Dogecoin addresses are public key hashes. Unlike bitcoin addresses, which are 27-33 characters long, Dogecoin addresses are a string of 34 numbers and letters (both upper and lower case), preceded by the letter D. The public key is the Dogecoin address that other users can send Dogecoins to. A private key, however, allows full access to the Dogecoin wallet; it must be kept confidential and safe. Dogecoin holds the record for most transactions per day for any cryptocurrency, peaking at 2.5 times more transactions than all other cryptocurrencies combined in December 2013.

Mining Parameters
This implementation of Dogecoin differs from litecoin by several parameters. Dogecoin’s block time is 1 minute as opposed to Litecoin’s 2.5 minutes. The time of difficulty is retargeted once per block and the rewards fixed based on the block schedule are listed below. However, when Dogecoin was first introduced, the difficulty was retargeting once every four hours, and the gain was a random number between 0 and the maximum determined by the block schedule. Under a system where the random number of coins is distributed, rewards are calculated using the Mersenne Twister pseudo-random number generator. While the original implementation of Dogecoin intended it to be a fixed number of coins per block from 600,001 blocks onwards only (providing 10,000 coins per block), the algorithm at Dogecoin changes starting from block 145000 so prizes are always awarded (providing 250,000 coins per block up to block 200,001).

On March 12, 2014, version 1.6 of the Dogecoin client was announced. Along with allowing for it to be a fixed reward per block, new client updates also introduce a new difficulty algorithm called DigiShield. The main purpose of the new difficulty algorithm, adopted from the Digibyte altcoin, is to prevent multipools from being able to mine (and thus profit) from coins, reducing the coin price drastically, and forcing single-coin miners to deal with increasing difficulty pools leaving behind them. Thanks to the near-in difficulty instant change algorithm, any multipool entering the Dogecoin network will immediately go away, as mining difficulties will spike to severity, leading to decreased profitability and, ultimately, the absence of a multi pool. Several cases of using employer or university computers to mine Dogecoin have been discovered.