Dogecoin

Dogecoin
Denominations
Symbol Ð
Ticker symbol DOGE
Coins Open source peer-to-peer digital currency
Development
Original author(s) Billy Markus, Jackson Palmer
Initial release December 6, 2013 (2013-12-06)
Development status active
Operating system Microsoft Windows,
GNU/Linux,
IOS,
Android
Developer(s) Billy Markus
Source model Open source
Website http://dogecoin.com/
Ledger
Hash function Scrypt-based
Block reward As of February 2018, the current block reward is about 10000 Dogecoins.[1]
Block time 1 minute
Block explorer https://dogechain.info/
Circulating supply As of February 2018, over 113 billion coins had been mined.[2]
Valuation
Exchange rate Floating

Dogecoin (/ˈdoʊʒkɔɪn/ DOHZH-koyn,[3] code: DOGE, symbol: Ð and D) is a cryptocurrency featuring a likeness of the Shiba Inu dog from the "Doge" Internet meme as its logo.[4][5] Introduced as a "joke currency" on 6 December 2013, Dogecoin quickly developed its own online community and reached a capitalization of US$60 million in January 2014.[6]

Compared with other cryptocurrencies, Dogecoin had a fast initial coin production schedule: 100 billion coins were in circulation by mid-2015, with an additional 5.256 billion coins every year thereafter. As of 30 June 2015, the 100 billionth Dogecoin had been mined.[7] While there are few mainstream commercial applications, the currency has gained traction as an Internet tipping system, in which social media users grant Dogecoin tips to other users for providing interesting or noteworthy content.[8] Dogecoin is referred to as an altcoin.[9]

Overview and history


Dogecoin was created by programmer Billy Markus from Portland, Oregon, who hoped to create a fun cryptocurrency that could reach a broader demographic than Bitcoin. In addition, he wanted to distance it from the controversial history of other coins.[10] At the same time, Jackson Palmer, a member of Adobe Systems' marketing department in Sydney, was encouraged on Twitter by a student at Front Range Community College to make the idea a reality.[11]

After receiving several mentions on Twitter, Palmer purchased the domain dogecoin.com and added a splash screen, which featured the coin's logo and scattered Comic Sans text. Markus saw the site linked in an IRC chat room, and started efforts to create the currency after reaching out to Palmer. Markus based Dogecoin on an existing cryptocurrency, Luckycoin,[12] which features a randomized reward that is received for mining a block, although this behavior was later changed to a static block reward in March 2014.[13] In turn, Luckycoin is based on Litecoin,[14] which also uses scrypt technology in its proof-of-work algorithm. The use of scrypt means that miners cannot use SHA-256 bitcoin mining equipment, and that dedicated FPGA and ASIC devices used for mining are complicated to create. Dogecoin was officially launched on December 6, 2013.[15] The Dogecoin network was originally intended to produce 100 billion Dogecoins, but later, it was announced that the Dogecoin network would produce infinite Dogecoins.[16][17][18]

On December 19, 2013, Dogecoin jumped nearly 300 percent in value in 72 hours, rising from US$0.00026 to $0.00095,[19] with a volume of billions of Dogecoins per day.[20] This growth occurred during a time when Bitcoin and many other cryptocurrencies were reeling from China's decision to forbid Chinese banks from investing into the Bitcoin economy.[14] Three days later, Dogecoin experienced its first major crash by dropping by 80% due to this event and due to large mining pools seizing opportunity in exploiting the very little computing power required at the time to mine Dogecoin.[21]

On December 25, 2013, the first major theft of Dogecoin occurred when millions of coins were stolen during a hack on the online cryptocurrency wallet platform Dogewallet.[22] The hacker gained access to the platform's filesystem and modified its send/receive page to send any and all coins to a static address.[23][24] This hacking incident spiked tweets about Dogecoin, making it the most mentioned altcoin on Twitter at the time, although it was in reference to a negative event.[25] To help those who lost funds on Dogewallet after its breach, the Dogecoin community started an initiative named "SaveDogemas" to help donate coins to those who had them stolen. Approximately one month later, enough money was donated to cover all of the coins that were stolen.[26] On January 2014, the trading volume of Dogecoin briefly surpassed that of Bitcoin and all other crypto-currencies combined, however, its market capitalization remained substantially behind that of Bitcoin.[27] As of 25 January 2015, Dogecoin had a market capitalization of USD 13.5 million.[28] April 2015 Jackson Palmer announced he is taking an "extended leave of absence" from the cryptocurrency community.[29]

In January 2018, Dogecoin reached $2 billion market cap.[30]

Fundraising

2014 Winter Olympics

The Dogecoin community and foundation have encouraged fundraising for charities and other notable causes. On January 19, 2014, a fundraiser was established by the Dogecoin community to raise $50,000 for the Jamaican Bobsled Team, which had qualified for, but could not afford to go to, the Sochi Winter Olympics. By the second day, $36,000 worth of Dogecoin was donated and the Dogecoin to bitcoin exchange rate rose by 50%.[31] The Dogecoin community also raised funds for a second Sochi athlete Shiva Keshavan.[32]

Doge4Water

Inspired by the Winter Olympics fundraiser and smaller charity fundraising successes, the Dogecoin Foundation, led by Eric Nakagawa, began collecting donations to build a well in the Tana river basin in Kenya in cooperation with Charity: Water. They set out to raise a total of 40,000,000 ($30,000 at the time) Dogecoin before World Water Day (March 22). The campaign succeeded, collecting donations from more than 4,000 donors, including one anonymous benefactor who donated 14,000,000 Dogecoin (approx. $11,000).[33]

NASCAR

On March 25, 2014, the Dogecoin community successfully raised 67.8 million Dogecoins (around $55,000 at the time) in an effort to sponsor NASCAR driver Josh Wise. Wise ran with a Dogecoin/Reddit-sponsored paint scheme at the Aaron's 499 at Talladega Superspeedway.[34] On May 4, 2014, Wise and his car were featured for nearly a minute, during which the race commentators discussed Dogecoin and the crowdfunding effort, while finishing twentieth and narrowly avoiding multiple wrecks.[35] On May 16, 2014, Wise won a spot at the Sprint All-Star Race through an online fan vote beating household name Danica Patrick, largely due to the efforts of the Dogecoin Reddit community. He finished the race in fifteenth, the last car running.[36][37] The following race in the Coca-Cola 600, Wise debuted a Dogecoin/Reddit.com helmet.[38] Wise later announced he would run the car again at the Toyota/Save Mart 350[39] as a thank-you gift to the community and the GEICO 500. He finished twenty-eighth in the race due in part to a refueling issue; he was in twelfth place after a gas-and-go pit stop, but the gas can did not engage long enough, resulting in a second pit stop that took him towards the back of the pack.[40] The developer of the NASCAR '14 video game announced that they are looking into adding the Dogecoin car as a drivable car in an upcoming DLC.[37][41]

Use and exchanges

Several online exchanges offer DOGE/BTC[42] and DOGE/LTC trading. Three exchanges, Mengmengbi, Bter and BTC38, offer DOGE/CNY trading.[43][44] On January 8, 2014, AltQuick.co was the first exchange to launch DOGE/USD exchange.[45] On January 30, 2014, Canada-based exchange Vault of Satoshi also announced DOGE/USD and DOGE/CAD trading.[46][47] On February 2014, Hong Kong-based exchange Asia Nexgen announced that they would support the trading of Dogecoins in all major currencies. China-based exchange BTC38 also added their support on the Dogecoin exchange, boosting the market capitalization over 24 hours.[48][49] In the first day of trading, Dogecoin was the second-most traded currency on the platform, after Bitcoin.[50] On September 2014, UK-based exchange Yacuna began offering DOGE/EUR and DOGE/GBP trading.[51]

On January 31, 2014, trading volume across the major exchanges was valued at $1.05 million USD. The market cap was USD$60 million. Three exchanges accounted for the majority of volume: Bter (60%), Cryptsy (23%), and Vircurex (10%). The most traded currency pairs were DOGE/BTC (50%), DOGE/CNY (44%) and DOGE/LTC (6%).[52]

Trading physical, tangible items in exchange for DOGE takes place on online communities such as Reddit and Twitter, where users frequently share currency-related information.[4][53][54] On December 23, 2013, Tristan Winters of the online journal Bitcoin Magazine discussed what was needed for Dogecoin if it ever wanted to have the success Bitcoin has had or to possibly replace Bitcoin.[55]

The first Dogecoin ATM was demoed at Coinfest in Vancouver in February 2014.[56] Two Bitcoin ATMs supporting Dogecoins and other altcoins opened in Tijuana, Mexico on March 17, 2014.[57]

Dogecoin has also been used to try to sell a house,[58] and has been used in the pornography[59] and poker[60] industries.

Dogetipbot was a cryptocurrency transaction service used on popular sites like Reddit and Twitch.tv.[61] It allowed users to send Dogecoins to other users through commands via Reddit comments;[62] support for Twitch.tv and Twitter had been discontinued earlier.[63] The service was launched in 2013 on Reddit.[64] The trademark "dogetipbot" was officially registered on August 19, 2014.[65] In November 2014, the developer team behind dogetipbot raised $445,000 in venture capital funding.[66] In May 2017 Dogetipbot was discontinued and taken offline after its creator declared bankruptcy; this left many Dogetipbot users losing their coins stored in the Dogetipbot system.[67]

DogeAPI was a popular early digital wallet for Dogecoins. It was sold in August 2014 to the blockchain API developer Block.io.[68]

Over the years, many different tipping services have been created.

Popular Dogecoin tipping services as of July 2017
Name Active Minimum amount Function Services
Dogetipbot[61] No[63] 4 DOGE Tipping, Wallet Reddit, Twitter, Twitch.tv
Doger[69] Yes 1 DOGE Tipping, Wallet Freenode IRC(#Dogecoin)
Sodogetip[70] Yes 1 DOGE Tipping, Wallet Reddit
ssoaker(works via Doger) Yes 1 DOGE per active user Tip distributing across active users Freenode IRC(#Dogecoin)

Mining parameters

Dogecoin's implementation differs from Litecoin by several parameters. Dogecoin's block time is 1 minute as opposed to Litecoin's 2.5 minutes.[4]

Several cases of using employer or university computers to mine Dogecoin have been discovered.[71][72]

Block schedule

Block numbersPer-block rewardFirst blockExpected coins produced (approx.)Expected total circulation (approx.)
1–100,0000–1,000,000 (random)December 8, 2013[73]50,000,000,00050,000,000,000
100,001–144,9990–500,000 (random)February 14, 2014[74]11,250,000,00061,250,000,000
145,000–200,000250,000 (fixed)March 17, 2014[75]13,750,000,00075,000,000,000
200,001–300,000125,000 (fixed)April 28, 2014[76]12,500,000,00087,500,000,000
300,001–400,00062,500 (fixed)July 15, 2014[77]6,250,000,00093,750,000,000
400,001–500,00031,250 (fixed)October 2, 2014[78]3,125,000,00096,875,000,000
500,001–600,00015,625 (fixed)December 14, 2014[79]1,562,000,00098,437,500,000
600,001+10,000 (fixed)February 25, 2015[80]5,200,000,000 per yearNo limit

Currency supply

Unlike deflationary cryptocurrencies which have a limit on the number of coins that can be produced, there is no limit to how many Dogecoins can be produced, which makes it an inflationary coin. Dogecoin was initially to have a limit of 100 billion coins, which would already have been far more coins than the top digital currencies were allowing. In February 2014, Dogecoin founder Jackson Palmer announced that that limit would be removed and there would be no cap, which should have the result of constant reduction of its inflation rate over a long time.[81]

References

  1. ↑ "Dogecoin (DOGE) statistics - Price, Blocks Count, Difficulty, Hashrate, Value". bitinfocharts.com.
  2. ↑ "Dogecoin (DOGE) price, charts, market cap, and other metrics - CoinMarketCap". coinmarketcap.com.
  3. ↑ Pronunciation of Dogecoin, wonder no more. on YouTube
  4. 1 2 3 A History of Dogecoin. Dogecoin Analysis Report. Social Science Research Network (SSRN). Accessed 28 December 2017.
  5. ↑ Andrew Couts (December 12, 2013). "Wow. Dogecoin is the most Internet thing to happen, ever". Digital Trends. Retrieved December 12, 2013.
  6. ↑ Stephen Hutcheon. "The rise and rise of dogecoin, the internet's hottest cryptocurrency". Sydney Morning Herald. Fairfax Media. Retrieved April 5, 2014.
  7. ↑ "Dogechain - The official dogecoin blockchain!". Dogechain.info. February 10, 2015. Retrieved February 10, 2015.
  8. ↑ "The rise and rise of the Dogecoin and internet tipping culture". Australian Broadcasting Corporation. 24 January 2014. Retrieved March 4, 2015.
  9. ↑ Kaminska, Izabella (24 January 2014). "Why it's tough being in an altcoin cartel". FT. Retrieved 6 June 2018.
  10. ↑ Patrick McGuire. "Such Weird: The Founders of Dogecoin See the Meme Currency's Tipping Point". Motherboard. Vice Media. Retrieved December 23, 2013.
  11. ↑ Rob Wile (December 19, 2013). "What is Dogecoin?". Business Insider. Retrieved December 19, 2013.
  12. ↑ "Dogecoin: 5 Fast Facts You Need to Know".
  13. ↑ "Hardfork Dogecoin with static block rewards and a modified difficulty readjustment by azamatms · Pull Request #314 · dogecoin/dogecoin". GitHub. Retrieved 2017-05-11.
  14. 1 2 David Gilbert (December 20, 2013). "What is Dogecoin? The Meme that Became the Hot New Virtual Currency". International Business Times. Retrieved December 20, 2013.
  15. ↑ Ashe Schow (December 19, 2013). "Internet gold: Doge + Bitcoin = Dogecoin". Washington Examiner. Retrieved December 19, 2013.
  16. ↑ Danny Vega (December 9, 2013). "Dogecoin: 5 Fast Facts You Need to Know". Heavy.com. Retrieved December 9, 2013.
  17. ↑ "Not actually capped at 100 billion?".
  18. ↑ Miles Klee (December 10, 2013). "With its own cryptocurrency, Doge has officially conquered 2013". The Daily Dot. Retrieved December 10, 2013.
  19. ↑ Andrew Couts (December 19, 2013). "To the moon! DogeCoin fetches 300 percent jump in value in 24 hours". Digital Trends. Retrieved December 19, 2013.
  20. ↑ Nekomata (December 25, 2013). "2014: The Year of Dogecoin? And where to buy DOGE". KonNeko.com. Archived from the original on January 3, 2014. Retrieved January 1, 2013.
  21. ↑ Rob Wile (December 22, 2013). "Dogecoin Prices Crashed This Weekend". Business Insider. Retrieved December 22, 2013.
  22. ↑ Ashley Feinberg (December 26, 2013). "Millions of Meme-Based Dogecoins Stolen on Christmas Day". Gizmodo. Retrieved December 26, 2013.
  23. ↑ Catherine Shu (December 25, 2013). "Such Hack. Many Dogecoin. Very Disappear. So Gone. Wow". TechCrunch. Retrieved December 25, 2013.
  24. ↑ Salvador Rodriguez (December 26, 2013). "Millions of Dogecoins, currency based on a meme, are reported stolen". Los Angeles Times. Retrieved December 26, 2013.
  25. ↑ Ofir Beigel (January 7, 2014). "Please, not another coin - which altcoins are worth taking a look at". 99Bitcoins. Retrieved January 7, 2014.
  26. ↑ "Such generosity! After Dogewallet heist, Dogecoin community aims to reimburse victims". December 27, 2013.
  27. ↑ John Russell (January 15, 2014). "Dogecoin is the Bitcoin world's most traded currency, but it's unlikely to be its most valuable". The Next Web. Retrieved January 15, 2014.
  28. ↑ "Crypto-Currency Market Capitalizations | DogeCoin 30-Day Market Cap Graph". CoinMarketCap. Retrieved January 25, 2015.
  29. ↑ Pete Rizzo (April 24, 2015). "DDogecoin Founder Exits Crypto Community Citing 'Toxic' Culture". Coindesk. Retrieved April 24, 2015.
  30. ↑ "From Memecoin to Billion Dollar Player - Dogecoin Breaks $1 Bln". Cointelegraph. 6 January 2018.
  31. ↑ Rodriguez, Salvador (20 January 2014). "Jamaican bobsled team boosts value of Dogecoin, currency based on meme". Los Angeles Times.
  32. ↑ Devin Coldewey (January 29, 2014). "Dogecoin cryptocurrency donors help send Indian athletes to Sochi". NBC News.com. Retrieved February 2, 2014.
  33. ↑ David Gilbert (March 17, 2014). "'Most Valuable Tweet in History' Donates $11,000 Worth of Dogecoin to Kenyan Water Charity". IB Times. Retrieved May 25, 2014.
  34. ↑ Estrada, Chris (March 26, 2014). "NASCAR fans on Reddit use DogeCoin to sponsor Josh Wise". NBC Sports. Retrieved March 26, 2014.
  35. ↑ Stuckey, Daniel. "Talladega Shibe: The Dogecar's NASCAR Highlights". Retrieved May 6, 2014.
  36. ↑ Mike Hembree (May 16, 2014). "Josh Wise wins fan vote, beats Danica Patrick". USA Today. Retrieved May 18, 2014.
  37. 1 2 Owen S. Good (May 18, 2014). "Dogecoin, NASCAR's strangest hood sponsor, will appear in its official video game". Polygon. Retrieved May 18, 2014.
  38. ↑ "Photo by joshwiseracing". Josh Wise. Instagram. May 25, 2014. Retrieved May 31, 2014.
  39. ↑ Wilmoth, Josiah. "Josh Wise Announces He Will Drive the Dogecar Twice More in 2014". Cryptocoins News. Archived from the original on June 6, 2014. Retrieved June 4, 2014.
  40. ↑ Josh Wise (/u/dogedriver) (October 20, 2014). "Talladega (:". Retrieved January 25, 2014.
  41. ↑ Larry Frum (April 24, 2014). "Reddit, Dogecoin support NASCAR racer at Talladega". CNN. Retrieved May 18, 2014. Fans of the NASCAR '14 video game will also get the chance to race the Dogecoin car for themselves when it is added in an upcoming DLC pack. In fact, they have featured the scheme on a DLC pack that costs $0.99 on the Xbox 360 and the Xbox One.
  42. ↑ "Cryptocoin charts". Cryptocoincharts.info.
  43. ↑ "Bitcoin and Crypto-currency Exchange Platform". Bter.com. Retrieved January 25, 2014.
  44. ↑ "Mengmengbi and Crypto-currency Exchange Platform". Bter.com. Retrieved April 11, 2014.
  45. ↑ Pick, Leon (January 28, 2014). "AltQuick.co becomes man's 2nd best friend: allows dogecoin buying with USD". Digital Currency Magnates. Archived from the original on January 31, 2014.
  46. ↑ Bradbury, Danny (January 29, 2014). "Vault of Satoshi rolls out new altcoin support". Coindesk.
  47. ↑ "Vault of Satoshi adds new alt-coins and a CAD order book, coin-to-coin trading imminent" (Press release). Global Cryptocurrency Solutions via PRWeb.com. January 30, 2014. Retrieved January 31, 2014.
  48. ↑ Rizzo, Pete (February 13, 2014). "Asian exchange additions drive dogecoin price surge". Coindesk.
  49. ↑ Charlton, Alistair (February 13, 2014). "Cryptocurrency news round-up: London bitcoin ATM update and dogecoin joins two exchanges". International Business Times.
  50. ↑ Pick, Leon (January 30, 2014). "Dogecoin and quarkcoin hot, other altcoins not, on first day Vault of Satoshi trading". Digital Currency Magnates. Archived from the original on January 31, 2014. Retrieved January 31, 2014.
  51. ↑ "How to Buy Bitcoin in the UK". Coindesk. 2014.
  52. ↑ "DOGE charts and information". Cryptocoincharts.info. Retrieved January 31, 2014.
  53. ↑ Nathan Ingraham (December 16, 2013). "Bitcoin is so 2013: Dogecoin is the new cryptocurrency on the block". The Verge. Retrieved December 16, 2013.
  54. ↑ J. Duaine Hahn (December 16, 2013). "Move Over Bitcoin: Dogecoin is Here". Complex Tech. Retrieved December 16, 2013.
  55. ↑ Winters, Tristan. "Will Dogecoin Replace Bitcoin? — Bitcoin Magazine". Bitcoin Magazine.
  56. ↑ Hajdarbegovic, Nermin (February 18, 2014). "DIY Dogecoin ATM demos at CoinFest Vancouver". Coindesk. Retrieved March 17, 2014.
  57. ↑ Hajdarbegovic, Nermin (March 17, 2014). "Mexico's first bitcoin ATMs will also deal in altcoins". Coindesk. Retrieved March 17, 2014.
  58. ↑ Imam, Jareen. "Man selling home for $135,000 in Dogecoins". CNN. Retrieved March 17, 2014.
  59. ↑ "Fox on Reddit: Porn star looks to accept virtual currency Dogecoin". FoxNews.com. February 27, 2014. Retrieved March 17, 2014.
  60. ↑ "Dogecoin and Poker: A match made in heaven?". Dogecoin Poker Blog. April 25, 2014.
  61. 1 2 "How Do I Use Reddit's Dogetipbot?". 2014-02-03. Retrieved 2016-07-14.
  62. ↑ "How Dogetipbot Turned a Spoof Altcoin into a Tipping Phenomenon". 2014-04-10. Retrieved 2016-07-14.
  63. 1 2 "Dogetipbot overview on the r/dogetipbot wiki". www.reddit.com. Retrieved 2016-07-15.
  64. ↑ "overview for dogetipbot". www.reddit.com. Retrieved 2016-07-14.
  65. ↑ "USPTO TSDR Case Viewer". tsdr.uspto.gov. Retrieved 2016-07-17.
  66. ↑ "Micropayments Tool Dogetipbot Wins $445k From Investors". 2014-11-05. Retrieved 2016-07-14.
  67. ↑ Yeh, Peter (May 11, 2017). "Reddit Users Lose Real Money After Meme Currency Bot Dies". Gizmodo.
  68. ↑ "DogeAPI acquired by Block.io, Inc". Crunchbase. November 16, 2014.
  69. ↑ mniip (2017-01-14), Doger: The official dogecoin IRC tipbot. Resides in #dogecoin at freenode, retrieved 2017-08-24
  70. ↑ "SoDogeTip : New on-chain dogecoin tipping bot for reddit, released! • r/dogecoin". reddit. Retrieved 2017-08-24.
  71. ↑ Hutchinson, Lee (February 21, 2014). "Harvard supercomputing cluster hijacked to produce dumb cryptocurrency". Ars technica. Condé Nast. Retrieved June 13, 2014.
  72. ↑ Hern, Alex (March 4, 2014). "Student uses university computers to mine Dogecoin". Guardian.com. Retrieved June 13, 2014.
  73. ↑ "Dogechain - The official Dogecoin blockchain!". Blockchain Record for Block 1. Retrieved January 30, 2014.
  74. ↑ "Dogechain - The official Dogecoin blockchain!". Blockchain Record for Block 100000.
  75. ↑ "Dogechain - the official Dogecoin blockchain!". Blockchain Record for Block 145000. Retrieved March 17, 2014.
  76. ↑ "Dogechain - the official Dogecoin blockchain!". Blockchain Record for Block 200000. Retrieved April 28, 2014.
  77. ↑ "Dogechain - the official Dogecoin blockchain!". Blockchain Record for Block 300000. Retrieved July 19, 2014.
  78. ↑ "Dogechain - the official Dogecoin blockchain!". Blockchain Record for Block 400000. Retrieved October 6, 2014.
  79. ↑ "Dogechain - the official Dogecoin blockchain!". Blockchain Record for Block 500000. Retrieved February 27, 2015.
  80. ↑ "Dogechain - the official Dogecoin blockchain!". Blockchain Record for Block 600000. Retrieved February 27, 2015.
  81. ↑ "Dogecoin to allow annual inflation of 5 billion coins each year, forever". Ars Technica. Retrieved February 4, 2014.

Further reading

  • Roose, Kevin (September 15, 2017). "Is There a Cryptocurrency Bubble? Just Ask Doge". The New York Times. ISSN 0362-4331.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.