Dogecoin

Dogecoin (/ˈdoʊdʒkɔɪn/ DOHJ-koyn,[1] code: DOGE, symbol: Ð) is a cryptocurrency invented by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system that is instant, fun, and free from traditional banking fees. Dogecoin features the face of the Shiba Inu dog from the popular "Doge" meme as its logo and namesake.[2][3][4] It was introduced on December 6, 2013, and quickly developed its own online community reaching a market capitalization of US $5,382,875,000 on January 28, 2021.[5]

Dogecoin
Denominations
SymbolÐ
Ticker symbolDOGE
Development
Original author(s)Billy Markus, Jackson Palmer
Initial releaseDecember 6, 2013 (2013-12-06)
Development statusactive
Operating systemMicrosoft Windows,
Linux,
iOS,
Android
Developer(s)Billy Markus ("Shibetoshi Nakamoto")
Source modelOpen-Source License
Websitehttps://dogecoin.com/
Ledger
Hash functionScrypt-based
Block reward10,000 Dogecoins (as of Feb. 2018)
Block time1 minute
Block explorerhttps://dogechain.info/
Circulating supply127 billion (113 billion coins have already been mined)
Valuation
Exchange rateFloating

History
A physical 24 carat gold-plated depiction of one Dogecoin

Dogecoin was co-founded by IBM software engineer Billy Markus from Portland, Oregon and Adobe software engineer Jackson Palmer, who set out to create a peer-to-peer digital currency that could reach a broader demographic than Bitcoin. In addition, they wanted to distance it from the controversial history of other coins.[6] Dogecoin was officially launched on December 6, 2013 and within the first 30 days there were over a million visitors to Dogecoin.com.[7]

At the time, Palmer was a member of the Adobe Systems Marketing Department in Sydney and is credited with making the idea a reality.[8] Palmer had purchased the domain Dogecoin.com and added a splash screen, which featured the coin's logo and scattered Comic Sans text. Markus reached out to Palmer after seeing the site, and started efforts to develop the currency. Markus had designed Dogecoin's protocol based on existing cryptocurrencies, Luckycoin and Litecoin,[9] which use scrypt technology in their proof-of-work algorithm.[10] The use of scrypt means that miners cannot use SHA-256 bitcoin mining equipment, and instead must use dedicated FPGA and ASIC devices for mining which are known to be more complex to produce.[11][12]

On December 19, 2013, Dogecoin jumped nearly 300 percent in value in 72 hours, rising from US$0.00026 to $0.00095,[13] with a volume of billions of Dogecoins per day. 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.[9] Three days later, Dogecoin experienced its first major crash by dropping by 80% due to this event and to large mining pools exploiting the small amount of computing power required at the time to mine Dogecoin.[14]

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.[15] 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.[16][17] 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. 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.[18]

In 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. Initially, Dogecoin featured a randomized reward that is received for each mining a block, however in March 2014 this behavior was later updated to a static block reward.

In April 2015, Jackson Palmer announced he is taking an "extended leave of absence" from the cryptocurrency community.[19]

During the 2017 to early 2018 Cryptocurrency bubble, Dogecoin briefly reached a peak of $0.017/coin on January 7, 2018, putting its total market capitalization near USD 2 billion.

In July 2020, the price of Dogecoin spiked following a TikTok trend aiming to get the coin's price to $1.[20]

In January 2021, Dogecoin went up over 800% in 24 hours as a result of attention from Reddit users, partially encouraged by Elon Musk and the GameStop short squeeze.[21]

Use and exchanges

Several online exchanges offer DOGE/BTC and DOGE/LTC trading.

Dogecoin is an altcoin with many users. Mainstream commercial applications of the currency have gained traction on internet, such as a tipping system, in which social media users tip others for providing interesting or noteworthy content.[22]

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.[3][23][24]

Dogecoin has also been used to try to sell a house,[25] and has been used in the pornography[26] and poker industries.

Dogetipbot was a cryptocurrency transaction service used on popular sites like Reddit and Twitch. It allowed users to send Dogecoins to other users through commands via Reddit comments. 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.[27]

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.[3]

Several cases of people using their employers' or universities' computers to mine Dogecoin have been discovered.[28][29]

Currency supply
An early Dogecoin being held near a Washington Quarter issued by the United States Mint.

Dogecoin started its initial coin production schedule with 100 billion coins in circulation. By mid-2015 the 100 billionth Dogecoin had been mined with an additional 5 billion coins put into circulation every year thereafter. There is currently no implemented hard cap on the total supply of Dogecoins. Initially, Dogecoin had a supply limit of 100 billion coins, which would already have been far more coins than the top digital currencies were allowing. Nonetheless, in February 2014, Dogecoin founder Jackson Palmer announced that the limit would be removed in an effort to create a consistent reduction of its inflation-rate over time.[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
Josh Wise's Dogecoin-sponsored Chevrolet in 2014

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. The car was named the "#98 Moonrocket", and made its debut on May 4, 2014 at the Aarons 499 Sprint Series Cup Race.[34]

Wise ran with a Dogecoin/Reddit-sponsored paint scheme at the Aaron's 499 at Talladega Superspeedway.[35] 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.[36] 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.[37][38] The following race in the Coca-Cola 600, Wise debuted a Dogecoin/Reddit.com helmet. Wise later announced he would run the car again at the Toyota/Save Mart 350 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. Eutechnyx, developer of the NASCAR '14 video game, added the Dogecoin car as a drivable car in a DLC pack.[38][39]

References
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