What started out as a harmless experiment, a cryptocurrency created by enthusiasts for enthusiasts has managed to conquer the world, survive three crypto booms, and maintain its price and growth prospects. Today, Dogecoin wears the title of one of the oldest currencies in the crypto world, unbound by smart contracts, controversial solutions, constant feuds in the community and uncontrolled forks. How DOGE managed to achieve such popularity, and what it represents from a technical point of view.
The coin is based on a modified lightcoin protocol. Initially, DogeCoin fully copied the parent cryptocurrency in blockchain construction, mining confirmation, and was a typical fork.
The main difference was the atypical attitude of the community towards it. Created as part of a dog-related meme, it quickly gained its popularity, and proved to be successful.
As of 2013, before the serious development of Ethereum technology and smart contracts, the turnover totaled more than Bitcoin.
During the 2018 crypto boom, the price broke an all-time high three times, and even became a financial haven following the dumping of ERC-20 tokens. However, after the collapse of the crypto boom, quotes returned to standard levels, and fully regained correlation with the parent cryptocurrencies.
The system uses typical Proof-of-work as its issuance formation. And that means it has all the disadvantages of a first-generation blockchain:
The problem of controlling the network by creating 51% of the processing power. Given its much smaller community compared to BTC and LTC, Blockchain has been attacked several times than it has created the problem of repeated transactions.
Blockchain has problems with scalability. Transaction processing times are far away from BTC, making it impossible to use the token as a payment medium for a large flow of financial transactions.
DOR 2014, the size of the award was determined at random. After its popularity grew, the community decided to fix it.
Due to the increasing complexity of mining, the rate of generation and decryption is decreasing exponentially. Today, there are over 125 billion units in circulation.
In 2018, the company provided Dogethereum’s demonstration technology to convert current coins into ERC-20 contracts. According to the developers’ assurances, the technology is designed to combine first-generation Blockchain with Ethereum-based cryptocurrencies.
The DOGE user community is recognised as one of the friendliest in the crypto world. They are primarily known for their philanthropic actions aimed at settling the consequences in cities affected by environmental disasters, social media work, and changing the infrastructure of the internet.
Moreover, it is actively used and informally integrated into the social network Facebook. It is used to pay content makers. The low cost combined with a fixed transaction fee of 1 DOGE has made it one of the most popular koins with the friendliest community.
