Dogecoin

AAA

DEFINITION of 'Dogecoin'

Dogecoin is a peer-to-peer open source cryptocurrency and falls under the category of altcoins. Launched in December 2013 with a Shibu Inus (Japanese dog) as its logo, Dogecoin looked casual in its approach but is gaining wide acceptance for online transactions. It is a decentralized virtual currency and uses peer-to-peer technology to carry out its operations. Dogecoin is scrypt based (i.e. based on a password key) and enables fast payments to anyone, anywhere across the globe.

INVESTOPEDIA EXPLAINS 'Dogecoin'

Dogecoin, which was created by Billy Markus and Jackson Palmer, is currently one of the fastest growing cryptocurrencies. The Dogecoin community has a slogan, ‘To the moon!’ which shows their optimism and enthusiasm towards this virtual currency.

Dogecoin is one of the many digital currencies that have been launched after the success of Bitcoin. Dogecoin presents itself broadly based on the Bitcoin protocol, but with modifications. It uses scrypt technology as a proof-of-work scheme. It has a block time of 60 seconds (1 minute) and the difficulty retarget time is four hours. There is no limit to how many Dogecoins can be produced i.e. the supply of coins would remain uncapped. Thus Dogecoin is an inflationary coin, while most cryptocurrencies (like Bitcoin) are deflationary (there’s a ceiling on the number of coins that would ever come into existence).

Dogecoin deals with large numbers of coin that are lesser in value individually, making the currency more accessible with a low entry barrier and fit for carrying out smaller transactions. With these traits, Dogecoin is becoming popular for "tipping" fellow internet-goers for sharing or creating great content. 

 

RELATED TERMS
  1. Bitcoin Wallet

    A Bitcoin wallet is a software program where Bitcoins are stored. ...
  2. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network ...
  3. Bitcoin Mining

    Bitcoin mining is the process by which transactions are verified ...
  4. Bitcoin

    A digital or virtual currency that uses peer-to-peer technology ...
  5. Paper Wallet

    A paper wallet is an offline mechanism for storing Bitcoins. ...
  6. Litecoin

    Launched in the year 2011, Litecoin is an alternative cryptocurrency ...
Related Articles
  1. The Easy Way To Measure Bitcoin's Fair ...
    Investing Basics

    The Easy Way To Measure Bitcoin's Fair ...

  2. Will Bitcoin And Walmart Force Western ...
    Investing News

    Will Bitcoin And Walmart Force Western ...

  3. U.S. Marshals To Auction Off Seized ...
    Investing Basics

    U.S. Marshals To Auction Off Seized ...

  4. Why Is Bitcoin's Value So Volatile?
    Investing Basics

    Why Is Bitcoin's Value So Volatile?

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center