Dogecoin, originally created as a joke in 2013, has become one of the most recognized cryptocurrencies in the market. Unlike Bitcoin, which aims to be digital gold, Dogecoin is known for its fun and friendly community, represented by the Shiba Inu dog meme. But what exactly is Dogecoin, and how does it work?
The History of Dogecoin
Dogecoin was developed by Billy Markus and Jackson Palmer as a parody of the growing hype around cryptocurrencies. Based on the Litecoin protocol, Dogecoin uses a Proof-of-Work (PoW) consensus mechanism to validate transactions. Despite its humorous origins, Dogecoin quickly gained popularity for its fast transaction times and low fees.
How Does Dogecoin Work?
Dogecoin operates on its own blockchain, where miners verify transactions and earn Dogecoin as a reward. Unlike Bitcoin, which has a capped supply, Dogecoin has an unlimited supply. This means 10,000 new Dogecoins are mined every minute, keeping its price relatively low compared to other cryptocurrencies.
Why is Dogecoin Popular?
The Dogecoin community, known for its generosity, has raised funds for charitable causes, including sponsoring NASCAR drivers and water wells in Kenya. Additionally, celebrities like Elon Musk and Mark Cuban have supported Dogecoin, bringing it into the mainstream.
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