The Dogecoin is named after the famous meme Doge; the one with the Shiba Inu dog. Dogecoin started out as a bit of a joke when launched in December 2013, but quickly became a popular cryptocurrency online. The month after its premiere, it had already reached a capitalization of 60 million USD. January 2014 actually saw the Dogecoin trading volume exceed that of all the other cryptocurrencies combined – including Bitcoin – but this spike was rather short-lived.
Dogecoin was created with Luckycoin as a base, and Luckycoin in turn is based on Litecoin which is a Bitcoin spinoff. Just like Luckycoin, Dogecoin employes scrypt technology in its Proof-of-Work algorithm.
Until March 2014, Dogecoin handed out a randomized reward for each mined block (just like Luckycoin). Since then, a system of static rewards has been used instead, making the reward scheme more predictable for miners.
Dogecoin was launched with a comparatively rapid coin production schedule, and its block time is much faster than Litecoin’s: 1 minute instead of 2 minutes and 30 seconds. Initially, there was a 100 billion Dogecoin production cap, but this limitation has been removed by the Dogecoin team. Dogecoin #100 billion was mined in June 2015.
How old is Dogecoin?
Dogecoin was launched in December 2013.
Launch: December 6, 2013
Source model: Open source
Hash function: Scrypt-based
Block time: 1 minute
Where can I use Dogecoin?
Dogecoin is chiefly used online, especially for donations and for tipping content and service providers. There are not many mainstream vendors that accept payment in Dogecoin.
The Dogecoin community is renowned for its successful fundraising activities and has for instance financed a well project in Kenya together with Charity: Water.
When a hacker stole millions of dogecoins from users of the wallet platform Dogewallet on Christmas Day 2013, the community set up a the fundraiser “SaveDogemas” to support the victims. After roughly one month of fundraising, so much money had been donated that it covered all the stolen dogecoins.
Examples of athletes that have been supported by Dogecoin fundraising campaigns are Shiva Keshavan (first Indian luge contestant at the Winter Olympics), Josh Wise (a NASCAR driver), and the Jamaican Bobsled Team who received the necessary funds to compete in the 2014 Sochi Winter Olympics. For the bobsled team, the equivalent of nearly $130,000 was raised on 19-21 January 2014, far surpassing the $40,000 target.
Because of the scrypt technology in the Proof-of-Work algorithm, it is not possible to use SHA-256 mining equipment to mine Dogecoin. (SHA-256 is commonly used to mine Bitcoin.)
It is not impossible to create dedicated FPGA and ASIC devices for Dogecoin mining, but it is definitely difficult and most miners opt for better solutions.
One of the driving forces behind the creation of Dogecoin was the Portland-based programmer Billy Markus. His idea was to create a cryptocurrency that wouldn’t be as serious as Bitcoin, Litecoin and their ilk. His hope was that a more fun cryptocurrency would be able to reach a larger audience. On the other side of the world, Jackson Palmer – a member of Adobe System’s marketing department – bought the domain dogecoin.com and put up a page featuring a logo for the not-yet-existing coin. Together, Markus and Palmer began to work on the Dogecoin project, and they quickly attracted a dedicated fanbase online.
Dogecoin was launched on December 6, 2013.