The history of the Dogecoin blockchain project once again confirms that it takes not only talented programmers, but also good marketers to launch a cryptocurrency network. Of course, if the new digital currency will actually be used, otherwise its creators are just crooks. But, the people who launched the smiling Doge coin can’t be called that. They wanted to create a virtual means of payment available to ordinary users and as free as possible from the hype surrounding Bitcoin associated with the circulation of the digital coin on the black market.
Dogecoin developers used a popular online meme as a symbol for the new cryptocurrency. The innovative approach to the advertising campaign bore fruit and the coin gained attention. The project began to develop successfully and quickly became widely known in the blockchain community. In this review, we will detail the creation history and technical characteristics of Dogecoin, a digital asset released for fun, but which has become one of the most famous in the crypto industry. So, what is Dogecoin, or one success story.
Dogecoin is a decentralized online currency for mutual payments between users of the network. The token is based on the Scrypt algorithm, which is based on a fork of the LTC coin, called Luckycoin. Despite the scepticism of some experts who considered Dogcoin completely useless, the coin quickly soared in value and is now in the top ten of Coinmarketcap.
Then there was a prolonged decline, but thanks to the efforts of the team and all the token holders, not only did the project not disappear but it retained its place in the top 100. After a series of ups and downs, the coin began to rise in value and gained practical application at the end of 2017. Doge may not be attracting the big players in the market, but ordinary members of the blockchain community are actively using it for secure and anonymous payments.
However, don’t completely rule it out of your investment portfolio, either. After all, Dogecoin is a coin with good liquidity and upside prospects. Let’s tell about Dogecoin’s technical features, but first let’s make a short excursus to the history.
History of Dogecoin (DOGE) development
The Dogecoin cryptocurrency was created by Billy Marcus from Portland, Oregon. He came up with the idea of releasing a fun digital coin that could become more popular and in demand than Bitcoin. He was supported by Jackson Palmer, a marketing officer at Adobe Systems in Sydney. It was he who bought the domain dogecoin.com and added a splash screen with the coin’s logo and scattered Comic Sans text. The Dogecoin network is based on the existing Luckycoin cryptocurrency and was officially launched on 8 December 2013.
Initially, it was planned to issue 100,000,000 tokens, but then the project administration decided not to limit the issue. The amount of reward per block has also changed. In the base cryptocurrency Luckycoin it was random and depended on many factors, the programmers of Dogecoin assigned a fixed amount of payment. Initially, it was 1,000,000 DOGE. It was very easy to start mining Dogecoin back then, the coin was mined on CPUs, but over time the Scrypt algorithm was taken over completely by ASICs.
Shortly after launch, Dogecoin survived a rather serious hacking attack for a young project. A breach in the software code allowed attackers to steal tokens worth the equivalent of $12,000. But credit must go to Billy Marcus and Jackson Palmer, they immediately reimbursed the depositors and promptly resolved the problem.
Dogecoin began to skyrocket in a month and a half, the coin gained 300% in value and was ranked among the top ten most popular cryptocurrencies in the world. But, the emergence of serious crypto projects like NEO, XML and Monero in 2014 diverted investors’ attention. The coin fell in value again and didn’t rise above $0.0003 until 2017, which is about 10 times less than its current rate. The project team actively worked to promote the DOGE cryptocurrency by participating in charity fundraising events.
For example, in winter 2014, with the help of network users, they managed to raise $50,000 for the bobsleigh team from the tropical island of Jamaica to participate in the Winter Olympics. Later, with the help of cryptocurrency, Dawgs raised money for car racer Joshua Wise, who participated in NASCAR in a car with the project logo. The cryptocurrency was used to raise money for new wells in the African nation of Kenya, whose population was suffering from drought.
For a period of time, the price of DOGE fell below 25 satoshi, and sceptics were already expecting a complete collapse of the project, but after reaching the “bottom”, the DOGE currency went up, and its story continues to this day.
Technical features of Dogecoin (DOGE)
Based on a fork of Lighticoin, the DOGE cryptocurrency differs from the base cryptosystem:
Block generation period (1 minute, versus 2.5 in the LTC network);
Transaction processing speed (6 minutes);
Unlimited issuance (Lighticoin has a coin limit of 84,000,000 LTC).
The remuneration for miners was reduced after a certain number of blocks found and is now 10,000 DOGE. During the current period, Dogicoin coins are mined in merged mining mode with the Scrypt algorithm’s main currency, Litecoin. The ASIC owner sends shares to the litecoinpool.org pool or any other LTC merged mining server and participates in DOGE mining at the same time. The same practice is used to mine some coins on SHA-256 and Cryptonight algorithms.
The founders of the project added artificial inflation to the program code in the amount of 5% per year of DOGE issue. The system issues 5,000,000,000 Dogicoins annually, which significantly holds back the exchange rate.
Cranes to get free Dogecoin (DOGE) coins
Dogecoin cranes are online resources that pay rewards in DOGE coins for performing simple actions on the website. The visitor has to register, enter the captcha and press the payout button to get a certain amount of DOGE coins (usually 0.1 to 0.8 DOGE) to his balance. After some time, for example after 15 minutes, the action can be repeated and in this way you will have enough money to withdraw to your wallet. Of course, you won’t earn much money visiting cranes, but such resources will help a beginner to get basic skills of handling cryptocurrency.
Not all cranes are equally reliable, some are outright scam projects. Choose the ones, where tokens are immediately credited to your personal account with withdrawal upon reaching the minimum threshold. Pay attention to the duration of the platform, the size of the payout and the recurrence interval of the fundraising. Reliable services are:
FaucetPay, a micropayment platform where you can earn 16 cryptocurrencies.
Doge-faucet.com pays out 0.1 to 0.2 coins every 3 hours.
Important: Site owners earn money by placing ads, so you will have to disable Ad blocker extension in your browser, otherwise you will not be able to withdraw money.
Dogecoin (DOGE) Wallet
The official Dogecoin cryptocurrency storage client, is available for download on the project developers’ website https://dogecoin.com. You can install:
MultiDoge is a “lightweight” wallet. It synchronises with the blockchain via a remote server.
Dogecoin Core is a “fat” wallet. Synchronisation requires the uploading of a copy of the blockchain.
To create an online Dogecoin wallet go to https://my.dogechain.info/#/overview and click Create Wallet. Then you will need to:
Specify an email address.
Think of a strong password.
Save your identification code.
The wallet has a simple and straightforward interface you can open my.dogechain.info in any web browser.
The digital currency is supported by multi-currency applications:
You can store your “dog coins” in a Ledger Nano S hardware safe, or in a deposit in one of 45 cryptocurrency exchanges. But be aware, trading platforms are periodically hacked by hackers, so don’t deposit large amounts there for long periods of time.
Where to buy Dogecoin (DOGE)?
The first place in terms of DOGE trading volume is occupied by Binance. You can buy coins for Russian rubles on the platform by topping up your balance with a regular card.
Supported trading pairs DOGE/BTC, DOGE/USDT, DOGE/BNB, DOGE/BUSD, DOGE/EUR, DOGE/GBP Exchange Dogicoin to other cryptocurrency is available on exchanges:
Dogecoin can be purchased through popular trading apps such as: Crypto.com, Blockfolio, Robinhood or Voyager. There are other mobile investment apps that allow you to buy Dogecoin. But, be aware that some of these services do not support cryptocurrency withdrawals to personal wallets.
The popularity of social networking sites leads to sharp fluctuations in Dogecoin exchange rates, and attempts by TikTok and Reddit regulars to collectively raise the coin’s price are affecting the virtual asset market.
The Dogecoin price is responding to media attention. For example, news about Airbnb caused prices to rise 3% against the US dollar within 3 days of the announcement. According to Google Trends, DOGE has a loyal audience and is most popular in Venezuela.
Like Dash, DOGE has proven to be one of the most popular altcoins in countries with unstable financial systems. For example, in Bangladesh, Pakistan, the Philippines and Nigeria. The coin is used as an alternative to the national currencies of those countries for monetary exchange between ordinary people.
Dogecoin (DOGE) is one of the cryptocurrencies that have caught the wave, rising to the 7th place in market capitalization after Tesla founder Ilon Musk published a series of tweets. In January this year, Dogecoin rose more than 900 per cent in a matter of hours and then rolled back, with trading volumes exceeding those of bitcoin (BTC). DOGE now has a market capitalization of $40 billion and has overtaken well-known blockchain projects such as Bitcoin Cash, Dash and Monero.
Thanks to the Ren project, Dogecoin cryptocurrency is available on the Ethereum network. Ren is an open protocol for transferring value between blockchains that collaborates with OpenDAO, which facilitates the use of real assets in the chain to run renDOGE. This allows Dogecoin holders to convert their DOGE to renDOGE and from renDOGE to DOGEO stablecoin in the OpenDAO application. Holders can then use them as collateral for decentralised financial products (DeFi).
The use of Dogecoin has gone beyond a funny meme on social media. The asset is accepted by some online retailers, and investments in Dogecoin form part of diversified cryptocurrency portfolios. The Latvian airline airBaltic recently began selling airline tickets for Ethereum, Dogecoin, Bitcoin Cash, USDC, BUSD and Paxos cryptocurrencies. The ticket price is denominated in euros. The automatic conversion of the cryptocurrency into fiat is performed by the BitPay payment service. In this way, Dogecoin has evolved from a created fun for the sake of a meme coin into a viable financial instrument. Keep a couple thousand Dogecoin in your wallet just in case. Good luck to you!