Dogecoin is an open- source cryptocurrency based on the popular internet meme 'doge' featuring a Shiba Inu on its logo. The digital currency is a Litecoin fork and has quickly developed its own community, reaching a market capitalisation of US$60 million in 2014, after being initially introduced as a joke currency the previous year.
Mining for dogecoin is a lot like mining for gold, but instead of swinging a pickaxe you use your CPU to run the algorithms. The only hardware requirement is at least one processor core (or GPU). You can mine with just about any computer if it has an internet connection and enough power to process the algorithms. Dogecoin uses Scrypt technology with an altcoin block time of 1 minute and the total time is uncapped, meaning that there is no limit on the number of Dogecoin that can be mined.
The cryptocurrency Dogecoin was created by IBM software engineer Billy Markus and Adobe software engineer Jackson Palmer, who had not even met when they successfully created Dogecoin. The digital currency was envisaged as a fun, light-hearted crypto that would bring great appeal as it was based on a meme.
As of February 2014, Dogecoin had become one of the top 10 cryptocurrencies in terms of market capitalisation and is traded on many online exchanges. It has experienced significant growth since debuting in December 2013.
There are many pros to using Dogecoin, including being able to make transactions without fees as well as unlimited uses for the currency. However, there are also cons such as volatility of DOGE's value and the lack of security features like 2-factor authentication or multi-signature wallets with cold storage capability.
The mining of Dogecoins is very similar to Litecoin. The computers involved in mining have a simple task, which is to find a solution to the cryptographic problem that has been presented before being rewarded with newly mined tokens.
Dogecoin is used mostly as a tipping system on Reddit and Twitter to reward the creation and sharing of good quality content. They have even been used in large donations such as sending the Jamaican bobsled team to compete at the Sochi Winter Olympics. There are many online exchanges where you can both buy and sell dogecoins but be sure to read customer reviews before making any decisions about which service you trust more.
Dogecoin was intended to be profuse in production as 10,000 coins are mined every minute and there is no maximum supply.