Dogecoin! While we look at the history of advent of blockchain, we can’t avoid how groundbreaking it was to see the Bitcoin. Bitcoin is not only a famous cryptocurrency for value exchange but also a currency which can get traded across the world. These days we are seeing many crypto currency bubbling up and we have just selected one for today’s blog which is “Dogecoin”.
Table of Contents
To start with Lets look at the history of Dogecoin…
Two very enthusiatic software engineers called Billy Markus and Jackson Palmer on one fine day decided to give birth to a payment system which was created just out of fun. The foundation of “Dogecoin”, or we can say “Dog-coin” has been entirely sarcastic. Billy Markus is also knows as “Shibetoshi Nakamoto” for his this gig. And Palmer is credited as the realizer of the conception of this coin. The design of this protocol, which has got immense inputs from Markus, was inspired by some already existing coins like Litecoin and Lucky Coin. T
How does the Dogecoin work in mining?
Dogecoin is mainly having four protocols which help in mining. The Chain of Dogecoin is attributed as Dogechain. Dogechain has got below methods of verification of Dogecoin.
- Proof-of-Work (PoW) – Nakamoto Consensus
As Proof-of-work being the most popular consensus protocol, the Dogecoin uses the same to get conensus on the Dogechain which happens to be the network of Dogecoin. - IBFT Proof of Authority (PoA)
In this type of consensus mechanism the validators use decentralized voting system.
This means that validators can be included or excluded from a validator group if the majority(51%) of validator nodes voted to add/remove a particular validator from the set. Thus, malicious validators can be detected and removed from the network at any point in time, and new trusted validators can be added to the network. - IBFT Proof-of-Stake (PoS)
Alternative to PoA, this mechanism of verifying Dogecoin on the network helps in selecting the nodes when Dogechain starts. Epochs are considered to be specific timeframe with a given set of validators can generate blocks. The Epoch length can be changed while the new block is generated. - RAFT
This protocol works with node failure. The Raft protocol first selects a leader among a set of nodes and then makes the leader fully responsible for receiving transaction requests and handling the copying of logs (i.e., blocks) on other nodes. Each node can be either a candidate, a follower, or a leader. The leader selection procedure is deterministic, so the protocol cannot run until the leader is selected by more than half of the nodes.
The Formula is n ≥ 2f+1 where f is the maximum number of nodes that can fail and n is the total number of nodes.
You see there are many ways one can mine Dogecoin on the Dogechain 🙂
The advantage of Holding this coin after mining?
- Security: The algorithm used for Dogecoin mining which is usually Proof-of-work is considered safe as compared to other third party payment services.
- Low Cost: The source code of the coin is open source and that makes the supply of the dogecoin pretty much more. This makes it cheaper alternative to paypal like services.
- High Transaction Speed: Dogecoin’s block time of one-and-a-half minutes makes it one of the fastest cryptocurrencies regarding transaction speed.
Downsides of Dogecoin:
- Limited Accountability: Well, we see that the supply of dogecoin can be increased due to its open sources nature, there is no single authority who protects its supply. Hence the chances of holding someone accountable in terms of fraud or any mishap becomes little doggy !
- Fraud risk: Because Dogecoin is not monitored by a central authority, there is a risk of fraud. This means you need to be extra cautious when investing in Dogecoin and always double-check the legitimacy of any exchange or company you plan to do business with.
Considering all these things lets see if someone thinks of buying Dogecoin that how can they…
How to buy a Dogecoin?
Buying Dogecoin is not that difficult. One can follow just some basic steps.
- Account Creation: One can create an account on any cryptoexchange and buy the coin.
- Finish your KYC: Put the Know Your Customer step secondly as when the trade happens internationally this Step authenticates the trader being legit.
- Do the Money Transfer: Transfer money from your bank account to the cryptocurrency exchange. The exchange may accept other payment methods, but bank account transfers generally have the lowest fees.
- Just Click on “Buy”: Once the money is available in your account with the exchange, select the “buy” option to purchase Dogecoin.
Dogecoin Price Prediction and Future Investment:
Despite the controversy with you know who ( Mr. X ), dogecoin has experienced impressive growth since its inception. We saw the advantages above that the the transaction fees are pretty low and its pretty secure. However, with a word of caution, the trading in cryptocurrency is inherently risking. Without a proper analysis once should think twice to put their hard earned money in investing.
The Below shows the Dogecoin chart, which will provide how it is performing.
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