Dogecoin, the meme-inspired cryptocurrency, has captivated investors worldwide.
Bitcoin (BTC) and Dogecoin (DOGE) are the first two cryptocurrencies that come to mind when most people think about blockchain. The memecoin with a dog theme is well-known. Although it might not be the most “practical” digital asset in the cryptocurrency market, it is a vital component of the history and culture of the industry.
Co-founders Billy Markus and Jackson Palmer of Dogecoin did not intend to create the future of finance when they developed the well-liked digital currency. Markus and Palmer merely wanted to make fun of the industry and demonstrate that people shouldn’t take things too seriously, unlike Vitalik and the creators of Ethereum (ETH), who were striving to transform the world.
Since then, Dogecoin has established a reputation for being a trustworthy alternative currency. What started as an internet meme has grown into a complex ecosystem and even gained the backing of Entrepreneur and billionaire Elon Musk.
Dogecoin is frequently referred to as the populist cryptocurrency. On-chain research reveals that barely 1% of Polygon’s daily transaction volume occurs on the Dogecoin network. If nobody uses DOGE, is it really the people’s coin?
Is the Dogecoin blockchain network legitimate? Or will the famous meme coin always be remembered as merely a meme?
What is Dogecoin?
Dogecoin is a lighthearted, approachable cryptocurrency designed in the likeness of Kabosu, a Shiba Inu who shot to online fame in the early 2010s. The Dogecoin blockchain is a decentralized open-source network where users can anonymously transmit and receive DOGE and store their digital assets.
Similar to Bitcoin and XRP, but more entertaining.
How Does Dogecoin Work? – Many don’t know that Dogecoin’s infrastructure is cloned from another crypto project. Dogecoin copied LuckyCoin, which copied Litecoin.
Dogecoin forked. ForkCeption.
Dogecoin uses proof-of-work like Bitcoin. Miners earn DOGE by validating transactions and creating new blocks.
Dogecoin was initially satirical. Billy Markus and Jackson Palmer wanted to make something absurd. One co-founder said on a podcast: “We don’t want people to care.”
To discourage miners, the designers added random block payouts. Miners received one to one million DOGE each block reward, making it unprofitable.
Dogecoin went viral anyway. Dogecoin had millions of visitors within months. The team corrected block reward emissions to placate the Dogecoin community, and the network became iconic.
What Is DOGE Used For? – Dogecoin uses DOGE. It pays network gas fees and can be exchanged for products and services if the recipient accepts Dogecoin.
Dogecoin has few uses. Dogecoin lacks smart contracts like Cardano (ADA) and BNB Chain. The network has no DeFi apps or NFTs.
But, Reddit users can tip posts with DOGE in real time. Twitter removed DogeTipBot in early 2023.
DOGE’s History
Dogecoin creators Billy Markus and Jackson Palmer thought the cryptocurrency sector was too serious. They believed crypto was worthless internet wizardry. The first meme coin was made for fun, which is apt.
Online viral trends spread fastest. Within a month, the Dogecoin website was flooded with eager DOGE buyers. DOGE reached $0.0018 in Q1 2014 before a crypto winter.
Emotional DOGE investors blamed Markus and Palmer for their losses. The founders left after online hostility, including death threats.
The Dogecoin community formed the Dogecoin Foundation to fill the gap and continue ecosystem expansion.
DOGE hit record highs in January 2018. Within 24 hours, crypto exchanges saw $235M U.S. trade activity for Dogecoin at $0.017. DOGE fell almost 80% in a few months, reflecting crypto market volatility.
The 2021 DOGE price rise during cryptocurrency craze dwarfs this. Dogecoin reached $0.73 in May 2021, surpassing its previous highs.
Dogecoin has been rumored to switch to Proof-of-Stake like Ethereum in recent years. Michi Lumin, Dogecoin Foundation’s lead developer, disproved this theory.
Lumin tweeted that Dogecoin’s blockchain cannot replicate The Merge.
Elon Musk and DogeCoin: Perfect Pair?
Dogecoin Tips was removed from Twitter, but CEO Elon Musk still supports DOGE. Because to its faster transaction speeds and reduced network costs, the Tesla founder prefers Dogecoin to Bitcoin.
Musk shocked the Doge community and the market by announcing that Tesla would accept DOGE for selected Tesla products and charge their electric vehicles at Tesla Supercharger stations.
DogeCoin Foundation
The 2014-founded Dogecoin Foundation develops and promotes the blockchain. Jens Wiechers, Michi Lumin, and Timothy Stebbing run the nonprofit.
The charity promotes Dogecoin’s founding credo, Do Only Good Everyday.
DogeChain
The crypto sector saw several bright spots in a tough year. DogeChain, a Layer-2 smart contract network, surprised the Dogecoin community.
Dogechain, a Polygon Edge-built EVM-compatible network, introduced DeFi apps and NFTs to Dogecoin. The network contains many Doge-themed platforms and uses wrapped DOGE (wDOGE) as its gas token.
Although DogeChain makes use of DOGE, it is not a DOGE product. Independent of the Dogecoin Foundation, DogeChain was first introduced.
Shiba Inu (SHIB), who were hinting at the release of their Layer-2 network, Shibarium, may have created DogeChain in order to divert attention from their activities.
On the other hand, Dogecoin has a big market cap. It’s only useful for trading or transferring DOGE.
The Dogecoin blockchain is also less scalable than Solana or Polygon, rendering it inefficient as a payment network.
But, Dogecoin is a meme and never claimed to be scalable or helpful. That works perfectly and makes some folks giggle.
Dogecoin is as important to crypto culture and history as Ethereum and XRP. DOGE will remain a top crypto despite its minimal network use.
