What is Dogecoin (DOGE)?

Dogecoin (DOGE) is a decentralized cryptocurrency that was created in December 2013 as a lighthearted and meme-inspired digital asset. It was originally developed by software engineers Billy Markus and Jackson Palmer as a fun alternative to Bitcoin.

The name “Dogecoin” is derived from the popular “Doge” internet meme, featuring a Shiba Inu dog with captions written in broken English Comic Sans font. This meme's light-hearted and playful nature was carried over to the cryptocurrency, which became known for its friendly and welcoming community.

From a technical perspective, Dogecoin is based on the Litecoin codebase, which itself is derived from Bitcoin’s open-source software. It utilizes a proof-of-work consensus algorithm, similar to Bitcoin, where miners solve complex mathematical problems to validate transactions and secure the network.

One distinctive feature of Dogecoin is its inflationary supply model. Unlike Bitcoin, which has a capped supply of 21 million coins, Dogecoin has no maximum supply limit. Instead, an infinite number of coins can be produced through mining, albeit at a decreasing rate over time. This means that Dogecoin experiences a steady and predictable inflation of its coin supply.

Dogecoin gained significant attention and popularity in early 2021 when it became the subject of various social media campaigns and endorsements by influential figures, including Elon Musk, the CEO of Tesla and SpaceX. These endorsements, combined with the growing interest in cryptocurrencies, led to a surge in Dogecoin’s price and trading volume. However, it’s important to note that Dogecoin’s value is highly volatile and subject to market speculation.

While Dogecoin initially started as a joke or meme currency, it has since gained a dedicated community and found use in various charitable initiatives. The Dogecoin community has engaged in fundraising campaigns to support causes such as disaster relief, community projects, and even sponsored a NASCAR race in 2014.

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White paper

Official website

Dogecoin (DOGE) blockchain explorer

How does Dogecoin work?

Dogecoin operates on a decentralized network and utilizes blockchain technology, similar to other cryptocurrencies. Here’s an overview of how Dogecoin works:

Blockchain: Dogecoin relies on a public ledger called the blockchain, which records all transactions made with the cryptocurrency. The blockchain is maintained and updated by a network of computers, known as nodes, that collectively verify and validate transactions.

Transactions: When someone sends Dogecoin to another person, a transaction is created. This transaction includes the sender’s public key (address), the recipient's public key, and the amount of Dogecoin being transferred.

Validation: Miners play a crucial role in validating transactions on the Dogecoin network. They compete to solve complex mathematical problems through a process called mining. This mining process involves using computational power to find a specific hash value that meets certain criteria. The first miner to solve the problem broadcasts the solution to the network, and other nodes verify its validity.

Consensus: The Dogecoin network achieves consensus through a proof-of-work (PoW) algorithm called Scrypt. This algorithm is designed to be memory-intensive, making it less susceptible to mining using specialized hardware (ASICs) compared to Bitcoin’s SHA-256 algorithm. Once a block of transactions is validated, it is added to the blockchain, and the miner who successfully mined the block is rewarded with a certain amount of newly created Dogecoin.

Coin Supply: Unlike Bitcoin, which has a limited supply of 21 million coins, Dogecoin has no maximum supply limit. The supply of Dogecoin increases over time due to the mining process, but the rate of production decreases over time. This means that Dogecoin experiences inflationary supply, with a predictable and controlled rate of new coin creation.

Wallets: Users store and manage their Dogecoin in digital wallets. Wallets can be software-based (installed on a computer or mobile device) or web-based (accessed through a browser). Each wallet contains a unique public key (address) and a corresponding private key, which is required to access and authorize transactions.

Community and Use Cases: Dogecoin has gained popularity due to its active and passionate community, known for its friendly and charitable nature. It has been used in various charitable initiatives and fundraising campaigns, demonstrating the community’s willingness to support good causes.

What makes Dogecoin (DOGE) different from others?

Dogecoin (DOGE) stands out from other cryptocurrencies in several ways:

Meme and Community: Dogecoin was created as a lighthearted and meme-inspired cryptocurrency, featuring the iconic Shiba Inu dog from the “Doge” meme. This unique origin story and the friendly, fun-loving community surrounding Dogecoin have contributed to its distinct identity.

Inflationary Supply: Unlike Bitcoin and many other cryptocurrencies that have a limited and predetermined supply, Dogecoin has no maximum supply limit. It has an inflationary supply model, with a predictable and controlled rate of new coin creation. This means that Dogecoin experiences a steady increase in its supply over time.

Social Media Influence: Dogecoin gained significant attention and popularity through social media campaigns and endorsements by influential figures such as Elon Musk. These endorsements and the active engagement of the Dogecoin community on platforms like Reddit and Twitter have played a significant role in its widespread recognition.

Community-driven Initiatives: The Dogecoin community has been known for its generosity and involvement in various charitable initiatives. They have raised funds for disaster relief, sponsored sports events, supported community projects, and contributed to other causes. Dogecoin has become associated with acts of kindness and charitable giving.

Approachability and Low Transaction Fees: Dogecoin is often considered more accessible and user-friendly than some other cryptocurrencies. Its low transaction fees make it suitable for microtransactions and tipping, which has contributed to its popularity in online communities and content creation platforms.

Technical Aspects: From a technical perspective, Dogecoin is based on the Litecoin codebase, which in turn is derived from Bitcoin’s open-source software. It utilizes a proof-of-work consensus algorithm, similar to Bitcoin, but with a different hashing algorithm (Scrypt). Dogecoin’s mining process is often considered more accessible to individual miners compared to Bitcoin’s ASIC-dominated mining.

How to buy Dogecoin (DOGE) on XT.COM?

Dogecoin (DOGE) can be purchased directly from XT.COM by using a debit or credit card. Dogecoin (DOGE) can also be traded for other cryptocurrencies on the XT.COM Crypto Exchange. Live Dogecoin (DOGE) price is updated in real-time on XT.COM. Buy Dogecoin (DOGE) on XT.COM in four simple steps:

1. Create your free XT.COM account
   Sign up or download the XT.COM appand start the sign-up process. Provide your email address, country of residence and secure your account with a strong password.
2. Secure Your Account
   Ensure stronger protection of your account by setting Google 2FA code and anti-phishing code.
3. Choose how you want to buy the Dogecoin (DOGE) asset.
   Click on the “Buy Crypto” link on the top left of the XT.COM website navigation, which will show the available options in your country.
4. Buy Dogecoin (DOGE)
   Use a variety of payment options to buy Dogecoin (DOGE) on XT.COM.