How was the cryptocurrency DogeCoin created and developed?
DogeCoin (DOGE) is a cryptocurrency created by a joke of its founder. The coin, named in honor of the dog, has got a symbol in the form of the muzzle shiba-inu and significant popularity in the cryptocurrency community. The technology Proof of Work is used, which implies the need for mining. Scrypt algorithm, previously used by the Litecoin cryptocurrency, became the basis for DogeCoin as well. However, unlike many other digital currencies, the size of DogeCoin emission is not limited in principle. Therefore, there are more than 100 billion coins in circulation. To prevent inflation from being too high, there is a limit – more than 10,000 new coins per minute cannot appear in the network.
How does the DOGE node system work?
DOGE node system is largely inherited from the Litecoin cryptocurrency. The calculation speed of the new block signature is 1 minute, as opposed to 2.5 minutes for Litecoin. To create a new DOGE node any computer running Ubuntu Linux will do. Simply download and install the software for free public nodes. The full public node will only work after downloading the full blockchain and synchronizing with it. This procedure will take a few days to a week. In its turn, Litecoin has adopted the crypto nodes system from Bitcoin. This means that the blockchain nodes provider does not get paid for its activities. Creating public crypto nodes for DogeCoin is also not rewarded in any way. As with Bitcoin and Litecoin, there are lightweight DOGE nodes and full DOGE nodes. Lightweight cryptocurrencies nodes only transmit transactions over the network until the information reaches the full public node. There is a more thorough check of the transaction and if it meets all the requirements, crypto nodes provider writes it in a blockchain.
What are the technical features of DOGE?
The main feature of this cryptocurrency is its affinity with Litecoin. Both of these cryptocurrency mining together, and during mining Litecoin miner gets some DOGE. The framework is based on Litecoin, and updates made to the Litecoin code are reflected in DogeCoin as well. If you are going to mine DOGE on your own, please note that the reward for the block is in 10 000 coins will be obtained by one of the free blockchain nodes that correctly calculated the block signature. To determine which public crypto node will get the reward, the cryptocurrency algorithm determines the winner using the lottery. That's why miners with weak computational power are combined into a pool, getting the reward in proportion to the effort spent.
Advantages of DogeCoin
DOGE already has a significant popularity in the cryptocurrency community. Thanks to user activity, the capitalization of this cryptocurrency has exceeded $1 billion at its peak. Its high transaction speed and easy usability combined with the low price make DOGE the best choice for cryptocurrency novice users. Any amount can be transferred with a commission of only a few DOGEs, which is much less than $0.01. Listing a coin on the leading cryptocurrency exchanges and Yahoo Finance shows its maturity.
Disadvantages of DogeCoin
The creators of the cryptocurrency DOGE are weakly engaged in its development, and the improvement of the program code is provided solely by the enthusiasm of community members. This digital currency has never become a common means of payment. High price volatility discourages those who might consider DogeCoin as an investment. For most users, the coin is still a joke, which has received an unexpected development.