Dogecoin (DOGE)

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If someone launches a digital coin based off an internet dog meme, is it an avante-garde media experiment, a joke, or a real currency? Enter Dogecoin, a cryptocurrency protocol based on Litecoin and inspired by the Doge internet meme of the Japanese Shiba Inu dog. When it launched, Dogecoin had already accumulated a significant internet following. At the time, it was seen as a counter-balance to the fraud-plagued and Silk-Road-associated Bitcoin. It was a coin for everyone. However, it hit choppy waters in 2014, when concerns that the coin had been co-opted by a company looking to pump up its impending investment rounds.

 

Ultimately, DogeCoin’s resilience has surprised many. The ability of the coin to stay in circulation with such incredibly small exchange rates attests to its popularity as a currency, a movement, and a meme itself – even in the midst of controversy.

Unique Attributes

Resists Multi-pool Mining

DogeCoin was one of the first coins to implement measures to discourage multi-pools and protect single miners. In an earlier version, DogeCoin issued blocks of psuedo-random rewards, but multi-pools could identify which blocks offered higher rewards and cherry-picked the most valuable blocks. Retarget times were also four hours, so a flux of multi-pools on select blocks could leave the difficulty very high for long periods of time. In 2014, an update addressed both issues, and now DogeCoin retargets difficulty every block.

Unlimited Supply

Dogecoin currently has the most number of coins in circulation: over 100 billion and counting. Approximately 5.2 billion new Dogecoins are released every year. It is one of the very few currencies with an infinite currency cap.

Active Fan Base

The most remarkable attribute of Dogecoin is its large, active community. Dogecoin’s reddit thread has half as many subscribers as bitcoin’s and far more than any other Alt-coin. It’s been used for some of the most public and playful uses among crypto-currencies, including sponsorship of a few NASCAR races, a school in Cambodia, and even a mini lunar rover race. Donations to a fundraiser inspired a shout-out from Will Ferrell.

However, whether these stunts have been surges of widespread Dogecoin enthusiasm or strategic investments from a few coinholders remains a question. The Daily Dot chronicles how Moolah.io founder Alex Green may have effectively co-opted the currency and orchestrated many of these activities to spur investment in his company. This accounting shows a darker side of Dogecoin, in which the visionary founders were driven out and one of the most prominent Dogecoin exchanges disappeared with user coins.

History and Launch

In late 2013, Australia based Jackson Palmer launched Dogecoin.com as a playful joke–a hypothetical currency he made up and was encouraged by fellow students to create. Meanwhile, in Portland, Billy Markus had been trying to create a cryptocurrency with a broader appeal than Bitcoin and stumbled across Dogecoin.com. He reached out to Palmer, and together, they launched Dogecoin as an actual cryptocurrency.

It was rapidly adopted as a currency for social tipping and micropayments. A combination of its following, wide circulation, and low value-per-coin made it the perfect coin to send a positive gesture online without actually losing money. Dogetipbot is a venture-backed startup focused exclusively on Dogecoin-based micropayments.

Attributes

Consensus: Proof-of-work (POW)

Hash Algorithm: Scrypt

Block creation time: 60 seconds

Launch condition: Launched with no instamine or premine.

Total Supply: No Supply Cap

Inflation Rate: 5.2 Billion released every year

Blockchain: Dogecoin

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