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That means that Dogecoin is more likely to be an inflationary coin, and that’s by design. Even though Dogecoin uses a very similar blockchain and proof of work system to Bitcoin, the process of creating Dogecoins is much simpler and can be completed much faster than Bitcoin.Īdditionally, unlike Bitcoin, there is no limit to the number of Dogecoin that can exist. There are some important differences under all the similarities, however. Once Dogecoin crypto is created or earned, it can be traded freely on the blockchain. Like many cryptocurrencies, the people who use their computer power to mine Dogecoin, or to support the network by tracking and logging transactions, are rewarded with a small amount of additional Dogecoin for their efforts. Like Bitcoin, Dogecoin owns its own blockchain, and miners use computers to solve complex problems that generate additional Dogecoins when completed. Dogecoin is, in large part, similar to Bitcoin in how it works. Now that we know doge, let’s talk about how Dogecoin works. So, let's take a closer look at the details. Like many currencies, Dogecoin is based on open-source Litecoin software.Ī lot of what’s made Dogecoin work is its appeal to the kind of people who are interested in crypto (including its irreverent name and origin) and its lower barrier to entry compared with other popular cryptocurrencies.īut origins aside, the details about this cryptocurrency and its long- and short-term potential lie in its blockchain and how the coin works. While the heyday of the doge meme is long past, Dogecoin turned into a serious competitor in the crypto market, much to the surprise of its founders – and the public.
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Knowing that there is a currency connected to a dog meme is one thing, but let’s get a little more detailed.ĭogecoin was first introduced back in 2013, by founders Billy Markus and Jackson Palmer, and its name is a reference to the then-popular doge meme of a Shibu Inu dog’s face superimposed over a sun with thought bubbles surrounding the dog. Advantages and Disadvantages of the Dogecoin CryptoĮven though you’ve probably heard of Dogecoin, it’s still important to learn what is Dogecoin, and what it isn’t.Is the Dogecoin Crypto a Good Investment?.
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