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What is Dogecoin (DOGE) | Whitepaper Summary

What is Dogecoin (DOGE) | Whitepaper Summary

INTRODUCTION

Between 2017 to early 2018, in the crypto bubble, Dogecoin gained popularity and fame. Dogecoin is a peer-to-peer and open-source crypto; we can consider it as an altcoin (altcoins are crypto other than Bitcoin). We also can see this is a meme coin that was launched in December 2013. The symbol of the currency is an image of a dog.

The coin’s technology is basically derived from Litecoin. Early on “Dogecoin” started as a meme and fun and get famous because of its memes, but after it was created, it gained popularity and was participating in the crypto market when the currency was in the bubble it will exponentially increase many coins value significantly. When the bubble burst in mid-2018, the value of Dogecoin decreased, and traders faced a lot of loss, but it still has some core traders who support Dogecoin. Users can easily buy and sell Dogecoin on a crypto exchange and store their coins in a Dogecoin wallet.

EMERGENCE OF DOGECOIN (DOGE)

As per Dogecoin Whitepaper,  it was created in 2013 by Jackson Palmer he was the product manager at Sydney, Office of Adobe Inc. it was just made because of the wave and popularity of crypto at that time; Palmer was a reasonable observer of new technologies, although he first took this crypto as a joke after getting positive feedback on social media platforms he bought the domain dogecoin.com.

Meanwhile, a software developer at IBM who wanted to create a digital currency discovered the Dogecoin buzz. Markus reached out to Palmer to get permission for the software behind an actual crypto. Markus based Dogecoin code on Luckycoin which was derived from Litecoin.

DOGECOIN’S ARCHITECTURE

Dogecoin Whitepaper Summary: The blockchain protocol is forked from the Litecoin project, with various parameters being changed. For example, Litecoin takes 2.5 minutes on average to mint a block, whereas Dogecoin takes only one minute to do the same.

Dogecoin uses the Scrypt hash function, compared to Bitcoin’s SHA256 hash. This makes hardware which are engineered specifically for Blockchain (such as ASICs), inefficient for Dogecoin.

ADVANTAGES OF DOGECOIN (DOGE)

Dogecoin has a list of advantages that include:

  1. Dogecoin mint blocks every 1 minute, compared to bitcoin’s 10 minutes.
  2. Dogecoin, being a crypto, is accepted by various services such as American Gold exchange, Namecheap, and different aline services such as AirBaltic.
  3. Dogecoin can also be used to make donations for Twitch streamers and to buy tickets and merchandise for teams such as Dallas Mavericks.

Additional Read: Shiba vs Doge

DOGECOIN’S TOKENOMICS

Dogecoin has no upper limits on the number of DOGE that can be in circulation. Much like Bitcoin, DOGE is earned through block mining rewards. The reward strategy is as follows:

Block count

Reward

1 – 100k

1M coins

100k – 145k

500k coins

145k – 200k

250k coins

200k – 300k

125k coins

300k – 400k

62,500 coins

400k – 500k

31,250 coins

500k – 600k

15,625 coins

600k +

10,000 coins

Supply statistics (as of 17 August, 2022):

  1. 132.6 billion DOGE in supply
  2. Market cap: $10.9 billion.
  3. 484.91 TH/sec hashrate

DOGECOIN’S (DOGE PRICE) PERFORMANCE OVER THE YEARS

DOGE/USDT | Source: Tradingview

Additional Read: Dogecoin Price Prediction

DOGECOIN’S COMPETITION

The main top competitors of Dogecoin and their specialties are

  1. Bitcoin (BTC)
    Bitcoin was created in 2009 by Satoshi Nakamoto; BTC is the original and very popular crypto among all others which is available on the market; BTC is known as ‘digital gold’ and is the world’s largest crypto. BTC price is currently trading at 19,275 after hitting its lowest point in 2022 around $18,000 (as of 8 September 2022)
  2. Ethereum (ETH)
    The Ethereum blockchain is a rapidly growing crypto. This is the major competitor of Bitcoin. It holds a market capitalisation of $469 billion; it is the second largest crypto by market cap and is undergoing the biggest upgrade called the Ethereum Merge.
  3. Cardano (ADA)
    The proof of stake of Cardano is more flexible than Ethereum’s proof of work at the present. A decentralised blockchain platform that uses a native crypto. Cardano enables secure peer-to-peer transactions and is soon going to be undergo an upgrade known as Cardano Vasil Hard Fork.
  4. Tether (USDT)
    This is not like other forms of crypto. It is a stable coin, which means that it is like a fiat currency like a USD or Euro; that means the value of Tether is more consistent than other crypto. And it is favoured by investors who believe in stable investments.
  5. Binance coin (BNB)
    Binance coin was launched in 2017, it is more focused on trade and paying fees on Binance, and it is possible through Binance’s exchange platform. It can be the trade of exchange for other forms of crypto, like ETH and BTC; the value was $0.10 in 2017, but now BNB coin price is around $265.

Additional Read: Bitcoin vs Dogecoin

DOGECOIN WHITEPAPER SUMMARY – ROADMAP & VISION

Dogecoin is an open-source project. Direction is formed by many organisational contributors and individuals as well to the various projects of the Dogecoin blockchain and ecosystem. The Dogecoin foundation is a non-profit organisation that aims to support the development of the meme coin; its roadmap contains several new projects.

Another work that it is trying to do is to lower the barrier for the new developers – this organisation is trying to get more devs into the Dogecoin community. Currently, they are pointing people at the bitcoin documentation and saying, “it is a bit like this, but there are differences.” By creating developer-focused documentation, we hope to see a rise in the number of devs moving into the Dogecoin community in the upcoming time.

CONCLUSION

Dogecoin is considered a “meme” coin because of the hilarious intentions of its creators, however, it has got its importance and once even became the 10TH top crypto by market capitalisation as of writing. This is proof that value can be generated even from technology being applied for fun.

HOW TO INVEST IN DOGECOIN (DOGE) 

Use this three-step process to buy your first DOGE token using the CoinDCX, crypto investment app.

Additional Read: Shiba INU Whitepaper Summary


Disclaimer: User Generated Content – Original Content created by a member of BITS Pilani, under the consultation of Dr. Amit Dua, Assistant Professor, Computer Science Department, BITS Pilani, Pilani Campus in association with CoinDCX. The views and opinions expressed within this post belong solely to the author.
Author: Madhav Madhusoodanan, Tikesh Vaishnav


 

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