What is Dogecoin (DOGE)?
Launched in 2013, Dogecoin is a peer-to-peer open source cryptocurrency much like an alternative digital currency of Bitcoin, that provides a completely decentralized, unknown and secure environment that is free from any third party system when it comes to the transactions.
Software engineers Jackson Palmer and Billy Marcus created dogecoin in 2013. Palmer mark the cryptocurrency’s logo using a popular meme that featured the misspelled word “doge” to describe Shiba Inu dog.
History of Dogecoin
Jackson Palmer a software engineer and a product manager at Sydney, Australia office of Adobe Inc. created dogecoin in 2013 as a way to mock surrounding cryptocurrencies. After receiving positive feedback on dogecoin which he created just to mock other cryptocurrencies, he bought a domain dogecoin.com.
Billy Markus, a software developer at International Business Machines (IBM) wants to create a digital currency but had a trouble in promoting his efforts. So Markus and Palmer teamed up together to build the software behind an dogecoin.
Later, Markus and Palmer launched the dogecoin in December 6, 2013. After two weeks the value of coin jumped 300%.
How does it works?
Like any other cryptocurrency, Dogecoin runs on its own blockchain. The digital ledger of Dogecoin is constantly being updated with all the new transactions and cryptography is used by the network to keeps all the transaction secure.
The blockchain of Dogecoin uses a proof of work consensus mechanism, where miners solve complex mathematical equations by using computers in order to process transactions and record them on blockchain. In exchange of supporting the blockchain miners earn extra dogecoin which they can hold or sell in the market.
It may be used for purchases and payments. This is in the main because thee is no cap of the number of Dogecoin that may created by mining.
Use of Dogecoin
Today many companies as well as firms like restaurants, web hosting, E-booksellers and travel services use Dogecoin for the transactions.
These are a few companies in every sector that use Dogecoin for transactions. For example: MonsterMeg, Prodigy and FloxiNET are among the top few companies that use Dogecoin.
Advantages of Dogecoin
- Dogecoin is widely accepted.
- The transaction fee is very low.
- The network has a dedicated and friendly community of followers and creators.
- Faster confirmation time for the completed transactions.
Disadvantages of Dogecoin
- Dogecoin has limited functionality.
- It is less secure compared to the other top surroundings cryptocurrencies.
- Dogecoin mining is non-profitable because of its value which is relatively very low and it deals with a large number of coins.
- It has minimal buying options.
How to buy Dogecoin?
To buy Dogecoin you have to follow these steps:
Step 1: Open a digital wallet, BuyUcoin is one of the best applications for trading cryptocurrency.
Step 2: Register your account on BuyUcoin application.
Step 3: Complete your profile KYC by adding your address and identity proof.
Step 4: Add up your bank details.
Step 5: Secure your account by generating a suitable trading pin that is only accessible by you.
Step 6: Now you can start trading.
Frequently Asked Questions (FAQ)s
Who controls the Dogecoin network?
Nobody controls Dogecoin network, Dogecoin is controlled by all its users around the world.
What is the risk of investing in Dogecoin?
There are few risks of investing in Dogecoin . First there is potential that the value of Dogecoin can fluctuate . If the value goes down you could lose your money. However, if the value goes up you can earn profit.
Why is Dogecoin so successful?
Dogecoin is so successful because it started as a meme which make it more marketable and culturally accessible than other cryptocurrencies which are technically driven.
Is it safe to buy Dogecoin?
Dogecoin is a risky and a volatile investment and you should only purchase it if you’re in the strong financial position and can afford to lose the money.
In this article, you saw what is dogecoin, its concepts, how you can buy it and the advantages and disadvantages of dogecoin network.
If you have any questions regarding dogecoin feel free to drop them in the comments section.
Hope this article has helped you to clearly understand Dogecoin