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ID Dogecoin: what is this cryptocurrency
Dogecoin (DOGE) is one of the most popular and well-known cryptocurrencies in the world. This digital currency, which was originally created as a joke, now has real value and is actively used in the cryptocurrency community.
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Cryptocurrency History
The story of Dogecoin began in 2013 when a team of two programmers, Billy Marcus and Jackson Palmer, decided to create a new cryptocurrency based on a popular internet meme featuring a Shiba Inu dog. The main idea of the project is to make cryptocurrencies more accessible and understandable to a wide range of users.
Billy Marcus, a programmer from Portland, Oregon, used the source code of Luckycoin, a fork of Litecoin, as the basis for creating Dogecoin. Jackson Palmer, an Adobe Systems employee in Sydney, purchased the dogecoin domain name for the project. com. Dogecoin was officially launched on December 6, 2013.
Although Dogecoin was initially created more as a joke, a meme, it quickly gained popularity in the online community. There are several factors that contribute to this:
- Ease of use. Dogecoin was designed to be a simple and easy cryptocurrency that is accessible even to beginners.
- Active community. A friendly and active user community formed around Dogecoin to support and promote the cryptocurrency.
- Charity. The Dogecoin community actively participates in charity events, which attract media attention and contribute to the growing popularity of this cryptocurrency.
- Celebrity endorsements. Famous figures such as Ilon Musk have openly expressed support for Dogecoin, which has led to an increase in interest in this cryptocurrency.
Due to these factors, Dogecoin has quickly grown from an internet meme to a serious cryptocurrency with a large user community and real market value.
Read more about Ilon Musk's push for dogecoin
The popularity of Dogecoin increased significantly after the famous entrepreneur and billionaire Ilon Musk started actively mentioning this cryptocurrency in his tweets and public speeches.
Musk's first tweet regarding Dogecoin was published on December 20, 2020. Musk tweeted, “One word: Doge.”. Not long after, the value of Dogecoin rose by 20%.
One of the most notable moments was Musk's tweet in February 2021 in which he referred to himself as the “Dogefather”. After this tweet, the price of Dogecoin rose by more than 50% in a day.
Ilon Musk's influence on the rise in popularity and value of Dogecoin was so great that many started calling him the “CEO of Dogecoin”, even though he officially had nothing to do with the project.
In addition to his tweets, Musk also promoted the adoption of Dogecoin as a means of payment. For example, his company, Tesla, has started accepting Dogecoin as payment for some goods.
Ilon Musk's support significantly influenced the success and development of the crypto coin, as well as increasing investor confidence in Dogecoin and contributing to the growth of its market capitalization. However, it is important to realize that the cryptocurrency market is highly volatile, and the influence of individuals, even high-profile ones like Ilon Musk, cannot guarantee steady price increases in the long term.
How cryptocurrencies work
Dogecoin, like most other cryptocurrencies, is based on blockchain technology. This means that all transactions are combined into blocks and form one continuous chain. This creates a decentralized database that contains a complete history of all transactions on the Dogecoin network.
Dogecoin is based on the source code of the cryptocurrency Litecoin (LTC), so it uses Proof of Work (PoW) as its consensus algorithm. Miners compete for the right to add the next block to the blockchain by solving complex mathematical problems. Once one of the miners finds a solution, a new block is added to the chain and that miner is rewarded with new DOGE coins. The complexity of these tasks is automatically adjusted after each 2016 block to maintain a stable block generation rate.
Dogecoin uses the Scrypt hash function, which is different from the SHA-256 used in Bitcoin. The Scrypt algorithm is more democratic and allows efficient mining even on ordinary computers, unlike Bitcoin, which is dominated by specialized ASIC miners. Additionally, block generation time on the Dogecoin network is only 1 minute, compared to 10 minutes on Bitcoin and 2.5 minutes on Litecoin. This ensures faster transaction processing and low fees.
An important feature of Dogecoin is that there is no limit to the total number of coins. DOGE issuance has no upper limit, new coins will be issued all the time.
