The Dogecoin Project
Improbability for miners, Less stability, Less secure
Nov 30, 2013
Dogecoin is a fun, new and rapidly growing form of digital currency. This form of digital currency is called "cryptocurrency"; a type of digital currency. Cryptocurrency is completely anonymous, decentralized,...
Dogecoin is a fun, new and rapidly growing form of digital currency. This form of digital currency is called "cryptocurrency"; a type of digital currency. Cryptocurrency is completely anonymous, decentralized, and extremely secure. Dogecoin is used with a wallet on your computer, your smartphone, or a website. You can use it to buy goods and services, or trade it for other currencies (both other cryptocurrencies or traditional currency like US dollars).
Has fast confirmation, Has lower transaction fees, Friendly community
Surely, anyone who has been surfing the Internet had stumbled upon the mascot of Dogecoin, which is the Japanese dog Shiba Inu covered in Comic Sans captions. Dogecoin was dubbed as one of the most interesting and unique cryptocurrencies out there. It was released on December 8, 2013, by Billy Markus and Jackson Palmer. Dogecoin is derived from Luckycoin which was built on the code base of Litecoin.
Similar with Litecoin, Dogecoin uses Scrypt as its proof-of-work algorithm mixed with the uniqueness of Luckycoin giving random sized block rewards. Scrypt is designed to require more computing power to run than SHA-256 algorithm. Originally, Dogecoin was introduced so that it may hopefully break the dominance of users running specialized hardware to monopolize mining. The sad part is that it turned out the Scrypt can be run as well on specialized hardware.
Being a Scrypt based cryptocurrency gives the user the advantage of being allowed to "merged mine". This means that the user will be able to compete to verify transactions on different Scrypt-based currency networks at once without having to spend more processing power. This sprang recently as a result of serious concerns about Dogecoin's hash rate decreasing to low levels, making it possible to launch a 51% network attack on the system, destroying the coin.
During its launching, Dogecoin has not gained as many retailers as Bitcoin, only having a business directory of over 200 companies that accept it as a form of payment. Since its growth, Dogecoin started to gain more acceptance as a means of payment by a larger number of services ranging from electronics, apparel, books, and even to Hamburgers from BIT Bourbon Steam Burgers in London. It also gained interest from the community for being used as a tipping currency.
Dogecoin's main concern is its extremely low per-coin value due to its extremely high coin supply. It is risky as a serious financial investment due to its lack of value. Despite this though, the coin continues to grow and its value remained fairly stable in contrast to numerous other cryptocurrencies out there.
How to Buy
There are basically two ways of acquiring Dogecoins: Dogecoin faucet and direct purchase of the digital currency. Obtaining Dogecoin for free is possible through the first method, all you need to do is simply enter your Dogecoin address and then proceed to solve a captcha. This can give you between one to five Dogecoins for free.
The second method is buying from an online exchange, where you can use your credit card. One example of an online exchange is WeSellDoges. All you need to do to buy from such online exchange is supply your email address and complete simple email address verification.
But in some other cases where a user wants to buy Dogecoins in very large quantity, they need to buy Bitcoin first, and then proceed to swap the Bitcoins for Dogecoins at an appropriate online exchange that can help with the swapping.
It is a very good idea if you first take a careful look at the statistics, the market structures, and the fundamental technology behind the digital currency before investing in it. Currently, its value is not as much as other contemporaries but if you are waiting for the price to go up, you may never make money from it.
After confirming that you have a Dogecoin wallet, the next step is to search for a Dogecoin trading exchange. One example is Coinbase which is very reputable as you will be sure you are not been duped.
After you have Dogecoin in your wallet, Search for an exchange house online where you can buy and sell your coins or swap them for other things you may need. Please be careful when choosing an exchange house.
There are four types of wallet that can be used to store your Dogecoin.
Desktop Wallet: This is named MultiDoge wallet and is available for Windows, OS X, and Linux
Phone Wallet: Available for Android and iOS. Just search for Dogecoin Wallet for Android and Doughwallet for iOS
Online Wallet: You can use Block.io as an online wallet. Just search it up on the Internet.
- Paper Wallet: WalletGenerator is an ideal Paper Wallet.
Pros & Cons
- Has fast confirmation
- Has lower transaction fees
- Friendly community
- Improbability for miners
- Less stability
- Less secure