What is Dogecoin?
Dogecoin is an altcoin, a digital currency that is not bitcoin, “bitcoin alternative”. Dogecoin is a new, rising open-source digital currency. It is a cryptocurrency, which means it uses public-key cryptography, it has a self-regulating peer-to-peer system, it is decentralized, anonymous, fast, and safe. You can create an electronic wallet for Dogecoin, and you can access it via desktop, laptop, smartphone, or a website. Dogechain.info is an online wallet that supports Dogecoin. Security is important, so you can select a safer alternative, a desktop wallet, Multidoge, you can download it from multidoge.org and install on your computer or laptop; it is easy, you can finish the installation in seconds, probably a few minutes.
You can sell and buy Dogecoin at online exchanges. You can buy Dogecoin for other currencies, either cryptocurrencies (bitcoin or Litecoin) or average currency like dollars.
How to Use Dogecoin
You can buy products or services with Dogecoin. You can buy or offer “microtransactions”, extremely cheap services, in exchange for Dogecoins. You can also use Dogecoin to “tip” website owners or bloggers if you like their web content. It is as if you “Like” them on social network sites, however, they can buy a product or service over the Internet, using the Dogecoins they receive.
Where the Name Comes From
Doge is a slang word that means dog; it refers to the images of Shiba Inus, known as “Shibe”. The spelling of the word comes from a puppet show of an Internet cartoon series from 2005.
In 2010, a Japanese woman, Atsuko Sato, featured the photos of her rescued dog on her blog, a Shiba Inu, called Kabosu. According to other sources, the original “Shibe” was another Shiba Inu who belonged to a San Francisco photographer, Jonathan Fleming. The images of the dog went viral. Later on, it became the logo of Dogecoin.
A New Currency Rises
In December 2013, someone jokingly mentioned a new currency, Dogecoin, on the social media site, Twitter. It was Jackson Palmer, a marketing expert from Sydney, Australia. His joke was a hit with audiences and received plenty of attention, so he bought a website named dogecoin.com. It gave ideas to a Portland based programmer, Billy Markus. Billy Markus contacted Palmer and started to work on the new currency, Dogecoin. He has based Dogecoin on the source code of Luckycoin, an already existing cryptocurrency, it offers randomized rewards for mining a block. Luckycoin is an alternative to Litecoin; Litecoin has scrypt technology. Users cannot mine Dogecoin with SHA 256 bitcoin mining tool.
The co-founders introduced Dogecoin on 8th December 2013. Initially, they limited the digital currency to 100 billion coins. Dogecoin, the currency that started out as a joke, went viral in a few days. Its value was rising, although it experienced big crashes, too.
In January 2014, its trading value surpassed all the other currencies, bitcoin included. By 30th June 2015, users have mined 100 billion coins, so the currency has reached its limits. However, the creators decided that they would produce a limitless number of Dogecoins.