The Story of Dogecoin
Zelcore
3 days ago · 4 min read
Open-source blockchain technology has enabled anyone with enough programming knowledge to develop their own cryptocurrency and launch it on the market.Until recently, the top cryptocurrencies on the market were all reputable projects with serious development roadmaps and real world use-cases.However, during the last bull market which launched numerous cryptos to the moon in terms of coin price and market capitalization, so-called meme coins managed to break into the cryptocurrency mainstream.
Dogecoin (DOGE) is the most p opular meme coin that gained immense popularity and widespread adoption rate lately.Let’s take a closer look at DOGE, find out what it is, how it works and how it compares to other altcoins.
History of Dogecoin Dogecoin was launched back in 2013 and it’s actually a veteran cryptocurrency, although it only became popular recently.
The coin was launched by crypto enthusiast Billy Markus and a group of likeminded meme-lovers who wanted to make the world of cryptocurrencies a more fun place, focused on entertainment, charity and jokes.That’s why the team chose the popular Shiba-Inu meme photo to represent the coin.
DOGE wasn’t focused on profits.Instead, the coin gathered a considerable online community of crypto advocates that wanted to use the cryptocurrency as a means for participating in fundraising or charity activities through the Dogecoin Foundation.Just one year after its launch, the Dogecoin community raised and donated 50,000 USD in DOGE coins to help people in Kenya struggling with water shortage.
Basically the idea behind DOGE was to contribute to various causes that can make the world a potentially better place.
A popular slogan among DOGE enthusiasts is Do Only Good Everyday .
How Dogecoin works The mechanism behind Dogecoin is similar to that of Bitcoin (BTC), because the project based it’s blockchain architecture on the original BTC network.This means that DOGE is a proof-of-work cryptocurrency, which can be mined.
When a user sends out a transaction of DOGE coins, the transaction needs to go through a verification process facilitated by DOGE miners, who search for the appropriate hash that confirms the validity of a transaction.While Bitcoin and Ethereum (ETH) require a tremendous amount of computing power to verify transactions, the Dogecoin blockchain requires far less power, making DOGE mining affordable even for users that don’t have very powerful mining rigs.This makes DOGE a cryptocurrency designed to be more democratic in terms of mining affordability.
Also, the transaction time is far lower than some other proof-of-work cryptocurrencies.It only takes about a minute for a DOGE transaction to get validated by miners, compared to the average 5 to 10 minute transaction time for BTC.
Dogecoin Popularity Until 2021, DOGE wasn’t a really popular cryptocurrency beyond the crypto meme community, but when Elon Musk endorsed DOGE on his social media accounts, the popularity of Dogecoin simply exploded.The price of DOGE, which was barely a fraction of a US dollar for years, jumped drastically, setting an all-time high of 0.73 USD.
The whole crypto market was caught off guard by the sudden rise of Dogecoin popularity.It was unbelievable that a joke cryptocurrency based on a popular internet meme has suddenly become a viable financial asset endorsed by one of the richest people on Earth.Elon Musk even went so far as to announce that he’s considering enabling customers to purchase Tesla products with Dogecoin.
Soon enough, a bunch of top ranking global companies and enterprises started including DOGE as a possible payment method for their products and services.
Companies that accept DOGE include AirBaltic, HostMeNow, the Dallas Mavericks, SpaceX, and many other businesses.
DOGE Compared to Other Altcoins Compared with other top ranking altcoins such as Ethereum, Cardano (ADA), Solana (SOL) and Binance Coin (BNB), DOGE doesn’t have any type of serious development roadmap or purpose beyond being a convenient asset for fast payments and digital cash services.
DOGE coin isn’t a project that aims to enable developers to launch countless decentralized apps and smart contracts like some of the mentioned altcoins.It’s merely a form of cheap, affordable, decentralized cash that can transcend the traditional financial system by using blockchain technology to carry out payments.
The popularity of DOGE is still on the rise, despite other meme coins such as the Shiba Inu (SHIB) token trying to take away its spotlight, because after all DOGE is the original meme coin.Just as no one could predict the current popularity of DOGE, there’s no sure way of knowing whether a new surge in DOGE price is around the corner, but the fact that more and more businesses are accepting the coin is definitely encouraging.
Conclusion Dogecoin is a great example of the unpredictability of the cryptocurrency market.Sometimes projects with serious development plans simply fail due to various unfavorable market conditions and then again you have cryptos like Dogecoin that suddenly become extremely popular..
