Dogecoin (DOGE) – which features the image of a Shiba Inu dog breed as a mascot – is a “meme coin” originally created as a satire around the early Bitcoin hype, but has since gained popularity and adoption in the crypto assets community.
Dogecoin (DOGE) started as a joke back in 2013, created by software engineers Billy Markus and Jackson Palmer. Inspired by the iconic Shiba Inu “Doge” meme, they wanted to bring some fun into the serious world of cryptocurrencies.
But here’s the plot twist: the joke got real. Today, Dogecoin isn’t just a meme—it’s a major player in the crypto world.
History of Dogecoin
Dogecoin was created in 2013 with a tongue-in-cheek approach to altcoins, which were gaining popularity in the cryptocurrency market at the time.
The creators, Billy Markus and Jackson Palmer, aimed to create a fun and inclusive cryptocurrency that would appeal to a wider audience than the more serious and technically focused Bitcoin. The name and logo are based on the popular “Doge” meme, which features a Shiba Inu dog.
Initially, Dogecoin had a randomized reward system for each mined block, but this was changed in 2014 to a static reward of 10,000 DOGE.
What is Dogecoin (DOGE)?
Dogecoin is a decentralized, peer-to-peer digital currency that allows you to send money online.
It operates on a blockchain, which is a secure and transparent public ledger that records all transactions.
Dogecoin uses cryptography to secure transactions and control the creation of new units of currency.
As one of the first and more popular altcoins, DOGE can be bought and sold on many crypto exchanges, transferred peer-to-peer or mined through the Dogecoin network, and can be used to pay for physical and virtual goods.
DOGE is also widely used as a tip to reward creators and sharers of original content as well as contributors to specific online communities.
Team background
Billy Markus – an IBM software engineer in Oregon – reached out to Australia-based Adobe Product Marketing Manager Jackson Palmer who had bought the domain dogecoin.com.
They released Dogecoin in December 2013 as a “fun” currency that will appeal to audiences beyond Bitcoin’s supporters.
Palmer left the cryptocurrency space in June 2014 and is now working as Adobe’s Senior Director of Product Management, Growth, and Data Science.
Meanwhile, Markus has remained as an advisor to the Dogecoin Foundation along with Ethereum’s Vitalik Buterin and Jared Birchall (Elon Musk’s representative).
The Dogecoin Foundation, a non-profit that aims to “develop a currency for the people” and “do only good every day” is currently managed by Dogecoin core developers and community veterans.
How does Dogecoin work?
Dogecoin’s blockchain is a fork of LuckyCoin, which is a now-defunct fork of Litecoin, which is a fork of Bitcoin’s blockchain. Got all that?
Don’t worry, all you need to know is that Dogecoin adopted Litecoin’s Scrypt algorithm as a way for miners to provide proof-of-work consensus to create blocks and verify transactions.
The Scrypt algorithm is a proof-of-work (PoW) algorithm that was introduced as a more memory-intensive alternative to Bitcoin’s SHA-256 algorithm, aiming to make mining more decentralized and less reliant on specialized hardware (like ASIC miners).
Thanks to Scrypt and a couple of tweaks, Dogecoin’s blockchain adds blocks (read: approves transactions) every 1 minute against Litecoin’s 2.5 minutes and Bitcoin’s 10 minutes.
With each new block, 10,000 DOGE is created every minute.
Key Features of Dogecoin
- Decentralized: Dogecoin is not controlled by any central authority, such as a government or bank, giving users more control over their funds.
- Fast Transactions: Dogecoin transactions are generally faster than Bitcoin transactions due to its shorter block time.
- Low Transaction Fees: One of Dogecoin’s main attractions is its low transaction fees, making it cost-effective for everyday transactions and micro-payments.
- Community-Driven: Dogecoin boasts a large and active community of supporters, often called “Shibes,” who contribute to its development, adoption, and overall positive vibe. This community sets Dogecoin apart from many other cryptocurrencies with its focus on fun, inclusivity, and accessibility.
- Inflationary Supply: Unlike Bitcoin, which has a limited supply of 21 million coins, Dogecoin has an inflationary model. While there is no hard cap on the number of Dogecoins that can be created, the rate of inflation is controlled. Initially, 100 billion Dogecoins were created, and new coins were added to the supply each year, but at a decreasing rate. This controlled inflation is intended to encourage ongoing use and circulation of Dogecoin.
Dogecoin Community
The Dogecoin community, often referred to as “Shibes,” is one of its most defining features. Known for its friendly and welcoming atmosphere, the community actively promotes Dogecoin’s use and adoption.
The Dogecoin Manifesto summarizes the community’s ethos, emphasizing positivity, kindness, and education. Their unofficial tagline, “Do Only Good Everyday,” reflects these values.
The Dogecoin community has a strong online presence, particularly on platforms like Reddit and Twitter. The r/dogecoin subreddit is one of the most popular communities for cryptocurrency and finance on Reddit, with millions of active members.
Beyond online engagement, the Dogecoin community has a history of supporting charitable causes. In 2014, they raised funds to help the Jamaican Bobsled Team participate in the Sochi Winter Olympics. They have also supported other charitable initiatives, demonstrating their commitment to giving back and making a positive impact.
Elon Musk, the CEO of Tesla and SpaceX, has been a vocal supporter of Dogecoin, and his tweets and comments have often influenced its price.
Token Metrics:
- Addresses Created: 90.34M
- Circulating Supply: 132.67B DOGE
- Annual Inflation Rate: 3.4%
- Max Supply: DOGE initially had a max supply of 100 billion when it was created in 2013, but that cap was removed in February 2014