The cute Shiba Inu dog turned Internet meme also inspired the name for one of the most popular cryptocurrencies to date – Dogecoin.
Uses and applications
It was first released without a large number of commercial applications, but it managed to gather a lot of interest from the community by being used as a tipping currency. It was offered to contributors as a sign of appreciation. Slowly, it became an accepted payment method by various services: for buying apparel, books, and electronic products, as well as for paying meals at BIT Bourbon Steam Burgers in London.
Technologies and updates
Dogecoin is derived from Luckycoin which is built on the Litecoin code base. It makes use of the Scrypt algorithm in order to validate proof-of-work (PoW) protocol. It also inherited Luckycoin’ s random-sized block reward generating process. The latter feature has been patched in March 2014, mainly because the largest crypto multi pools were mostly solving blocks that offered the largest rewards. Consequently, regular miners were left out from solving blocks with higher rewards. In that same patch update, DigiShieldwas added. Developed by DigiByte’s team, this algorithm is responsible for re-targeting the coin’s difficulty between every block.
Thanks to its initial momentum and with the community raising money for different charities and other initiatives, the cryptocurrency’s protocol closed a year and a half later without any added update.
The creator of Dogecoin, Jackson Palmer (who has meanwhile left the community) says that the coin has seen a large decline in the development department. He goes on saying that “New features aren’t being implemented into Dogecoin because there’s no active development anymore. Eventually, it will become outdated. And with that, the network will organically wind down.”
Should you invest in Dogecoin?
Dogecoin can be acquired through faucets and micro-wallets and can be sent and received without having to pay large fees. As a result, Dogecoin is easily exchanged with other low-tier cryptocurrencies. This is a good digital currency through which newbies can get better acquainted with the rules of the crypto space.
Dogecoin mining is dependent on the production of Litecoin Blocks, and it does not require any extra specialized mining hardware. Dogecoin is produced in an unlimited supply each time a LTC block is solved.
Dogecoin is very popular with investors in the Asian markets, in countries like Korea, Japan, and even China.
On the other hand, the long period of inactivity on the development side has left people wondering if Dogecoin will be useful at all in the future. The team behind the project says that an update for Dogecoin will likely come very soon; however, that remains to be seen.
Even though many gave up on mining Dogecoin due to its low value, the culture and community behind it seem very resilient. If you are a newcomer to the world of digital currencies, then Dogecoin offers a good way of getting acquainted with the environment, but, if you are a serious trader, best search for another, more powerful coin instead.