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DOGECOIN (DOGE): WHAT IT IS, HOW IT WORKS?

by BlockchainX 5 months ago in cryptocurrency

Cryptocurrencies have been revolutionizing the market since the appearance of Bitcoin, and they have many people watching their evolution and advancement.

Cryptocurrencies have been revolutionizing the market since the appearance of Bitcoin, and they have many people watching their evolution and advancement. From Trading from Zero , we want to help you understand the financial sector and train you so that you know how to handle the information yourself, avoiding scams and deceptions.

If you want to enter the world of cryptocurrencies and the stock market, we have courses adapted to different levels, whether you are a beginner in the field, or want to start in the world of the stock market, going through advanced training so that you increase the knowledge you already have .

In this post we are going to get to know Doge, the favorite currency of Internet users, and which has created a strong community within the digital environment. This community has participated in different acts of solidarity, and they intend to bring the currency to a continuous historical maximum. Doge to the moon!

Dogecoin: What is DOGE

Dogecoin is a cryptocurrency that enables digital payments through the Dogecoin Blockchain network. It was developed in 2013 by Billy Markus and Jackson Palmer, and it entered the market with a reputation as a virtual prank currency.

This cryptocurrency does not have a CEO or an official company, therefore, it is its loyal followers who drive the coin.

The cryptocurrency doge is primarily used to fund and tip content creators, but the number of merchants accepting it as a means of payment is on the rise. Its followers are increasing year after year and are pushing dogecoin prices and its market capitalization to ever higher highs.

Doge was born as a meme cryptocurrency, but has become a top coin by market cap with a 5,000% yield in 2021, and is supported by millions of users including Elon Musk and Snoop Dogg.

Dogecoin: How it works

Dogecoin is based on the code of Bitcoin, the first cryptocurrency. Doge was born as a fork of Luckycoin, which, in turn, was a fork of Litecoin.

Dogecoin has a Litecoin Scrypt-based consensus mechanism. Therefore, doge buys you many of the functionalities with Bitcoin. Like Bitcoin, the participants of the doge Blockchain network, protect the network and the creation of blocks by verifying transactions. The difference of doge is that it has a lighter architecture, which allows to process transactions faster than Bitcoin. For each block that miners generate, they get 10,000 DOGE.

The creators of this Cryptocurrency Development Company designed the internet's favorite currency with a maximum limit of 100 billion Doge. However, the team removed the cap a couple of months after launch. This is one of the reasons that its price does not increase as much as other cryptocurrencies.

Currently, DOGE has an inflationary supply, generating 5 billion new DOGEs each year.

How to use Dogecoin

Dogecoin is used as a Bockchain-based virtual currency. It is used to make payments and transactions. DOGE users can send and receive the cryptocurrency with their dogecoin wallets . Transactions are made in seconds and with minimal fees.

The cryptocurrency can also be used to tip content creators. It is a perfect currency for micro transactions, since it allows the sending of small amounts with almost zero fees.

Dogecoin wallet

The digital wallets or purses Cryptography is the place where criptomonedas are stored. They contain the information to use cryptocurrencies, including public and private keys.

In the case of Dogecoin we can find 4 types of wallets:

Software wallets

Software wallets come in many different ways, each with its own characteristics. Dogecoin offers two software wallets for download:

Dogecoin Core - Contains the entire Dogecoin blockchain. Downloading can take a long time, and it turns your computer into a Dogecoin node.

MultiDoge : it does not turn your computer into a full node, but it does store enough information to use Dogecoin.

Online wallet

These wallets allow you to use the Dogecoin blockchain, without the need to store the information on your computer.

Paper wallet

Stand wallets can be printed and have them on hand. It is a safe way to store your Dogecoin and can be found on the internet.

Hardware wallets

These wallets consist of removable hardware devices like USB sticks. They can fetch high prices of up to 100 euros, but like paper wallets, they are a safe way to store cryptocurrencies.

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