What is Dogecoin?
Dogecoin is a cryptocurrency that features a Shibu Inu from the Doge, an internet name on the logo. It was launched on the 8th of Dec, 2013. The difference between Dogecoin with other currencies is that it has a fast initial coin production schedule, estimated at around 100 billion coins in circulation by 2014 ending and around 5.3 billion coins per year aftermath. It was recorded that around 65 billion coins have been mined as of 30th Mar. 2014. There is not much commercial application for Dogecoin, the transaction of the currency is increasing like Internet tipping system, whereby users of social media grant Dogecoin tips to other users for a good content provided. Dogecoin community and members of other cryptocurrencies makes use of”TO the moon” to define the sentiment of the rising value of the coin.
HISTORY AND OVERVIEW
Dogecoin was established by Billy Markus, a programmer from Oregon, Portland. His hop was to create a fun cryptourrency that can be as broad in demography just like Bitcoin. His aim was to make a difference in its controversial history that was around Bitcoin, majorly the link with Silk Road marketplace online. During the same period, one of the Adobe System marketing members in Sydney, Australia named Jackson Palmer was encouraged on Twitter by one of a student of Front Range Community College to establish his ideas and make it realistic. Following various messages on Twitter, Jackson Palmer bought the dogecoin.com domain and added a splash screen, that features the coin’s logo and with different Comic Sans text. The link of the site seems like an IRC chat room to Markus, and began efforts to establish the currency after contacting Palmer. Degoicoin was based by Markus on the existing cryptocurrency named Luckycoin, and it features a random reward that is collected for mining a block, but his intention was changed to static block reward in March 2014. Luckycoin was based on Litecoin, and it makes use of scrypt technology in its algorithm of proof of work.
Using scrypt insinuates that miners cannot use SHA-256 Bitcoin technology, and that dedicated FPGA and ASIC devices used for mining are hard to create. It was on 8th of Dec. 2013 that Dogecoin was launched. The intention of Dogecoin network was to produce 100 billion Dogecoins, but it was later announced that the Dogecon network would produce infinite Dogecoins.
USES AND EXCHANGES
There are several trades’ online exchange that offers DOGE/BTC and DIGE/LTC. 3 trading Remninbi, Bter and BTC38, provides DOGE/CNY trading. The first exchange to launch DOGE/USD was AltQuick, on the 8th of Jan. 2014. The Canadian exchange Vault of Satoshi also made public trading of DOGE/USD and DOGE/CAD. On Feb. 2014, Hong Kong Based Asia Nexgen also announced their support towards the trading of Dogecoins in most currencies. On the 31st of January, 2014, the value of trading volumes in most currencies was estimated at around USD1.05 million. The market cap was USD60 million. The 3 exchanges that total the volume are 60% Bter, 23% Crypstsy, and 10% Vircurex. The highest traded currency pairs were 50% DOGE/BTC, 44% DOGE/CNY, and 6% DOGE/LTC.
Dogecoin uses public key cryptography just like Bitcoin and Litecoin. The user generates a pair of cryptographic keys: a public and private key. The information encrypted with the public can only be decoded by the private key, so the owner of the key can share the public key without the fear of hacking or bridge of access to the encrypted information. The addresses of Dogecoin are public key hashes. Different from Bitcoin addresses, which are 27-33 characters long.
The implementation of Dogecoin is different from Litecoin in various ways. The block time of Dogecoin is one minute while Litecoin’s time is 2.5 minutes. Problem aim time is once for every block and the reward is fixed based on the schedule of the block shows beneath. Under the random system whereby amounts of coins are shared, reward was estimated by Mersenne Twister pseudo random number generator. But the original implementation of Dogecoin mean for there to be a fixed number of coins for every block from block 600,001 upwards, Dogecoin’s algorithm were uttered starting from the 145,000th block to bring about a fixed reward . On 12th of Mar. 2014, version 1.6 of Dogecoin client was released. Following the chance of a fixed reward for every block, the recent client update also announced a new difficult algorithm known as DigiShield. The main goal of the new complicated algorithm, gotten from alticoin Digibyte, preventing multipools from being able to mine coins, decreasing the coin price, and forcing single coin miners to base with rise in difficulty of the pools left awake.
Different from cryptocurrencies that deflates like Bitcoin, there is no limitation to the amount of Dogecoin which can be produced. As a result of this, it has placed Dogecoin on the same level with other inflationary coins. Based on recent schedule, around 98 billion coins will have been in produced as of Jan. 2015, and mining level of 600,000 block.