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Doge (DOGE)

Maxbit Support
  • Updated

What is Doge (DOGE)?

Doge (DOGE).png

  1. Native Blockchain:
    • Dogecoin operates on its own decentralized blockchain, which originated as a fork of Litecoin. Initially introduced as a "joke" cryptocurrency, it has grown in popularity and community support.
  2. Consensus Protocol:
    • Dogecoin originally employed a Proof-of-Work (PoW) consensus mechanism, specifically using the Scrypt algorithm (the same as Litecoin). This means that miners need to solve complex mathematical problems to validate transactions and add them to the blockchain.
  3. Trilemma (Security, Speed, Scalability):
    • Security: Being based on PoW, Dogecoin benefits from the security strengths of this mechanism but also faces potential challenges related to 51% attacks (like most PoW coins).
    • Speed: Dogecoin has a 1-minute block time, making it faster than Bitcoin but not as speedy as some newer platforms.
    • Scalability: Like many traditional cryptocurrencies, scalability can be an issue with increasing transaction volumes, although its current transaction volumes are manageable.
  4. Founder / Date Founded:
    • Dogecoin was founded by Billy Markus and Jackson Palmer and was officially introduced on December 6, 2013. It started as a satirical homage to the numerous altcoins released during that period.
  5. Objective / Use Case:
    • Dogecoin was introduced as a fun and lighthearted cryptocurrency alternative. While it was not originally intended to be a serious financial instrument, it has been used for tipping online creators, fundraising for charitable causes, and other online transactions.
  6. Total supply/ Limit or Unlimited:
    • Dogecoin has an unlimited supply, meaning there is no cap on the number of DOGE that can be mined. Initially, there was a limit of 100 billion coins, but this was removed, and now over 130 billion coins are in circulation.
  7. Supply Deflation:
    • Given that Dogecoin has no maximum supply limit and new coins are continually introduced into the system, it doesn't adhere to a deflationary model. However, its inflation rate decreases over time because the static block reward becomes a smaller percentage of the overall coin supply.

          This summary should provide beginners with a foundational grasp of Dogecoin and its distinctive features within the realm of cryptocurrency. Given the rapidly evolving nature of cryptocurrencies, it's essential to stay updated on ongoing developments and updates.

References:

  • Dogecoin. (n.d.). About. [https://dogecoin.com/]
  • Wilmoth, J. (2018). What is Dogecoin? [https://cryptoslate.com/coins/dogecoin/]
  • Dogecoin. (n.d.). History. [https://en.wikipedia.org/wiki/Dogecoin#History]
  • Dogecoin. (n.d.). Community. [https://www.reddit.com/r/dogecoin/]
  • Dogecoin. (n.d.). Dogecoin Statistics. [https://coinmarketcap.com/currencies/dogecoin/]
  • History of Dogecoin - https://dogecoin.com/dogepedia/articles/history-of-dogecoin/

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