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. Peer-To-Peer (Virtual Currency)

    The exchange or sharing of information, data, or assets between ...
  6. Paper Wallet

    A paper wallet is an offline mechanism for storing Bitcoins. ...
Related Articles
  1. Investing Basics

    The Easy Way To Measure Bitcoin's Fair Market Value: A Do-It-Yourself Guide

    How do you determine the fair market value of a currency that has appreciated faster than the shares of even the hottest technology stocks?
  2. Investing News

    Will Bitcoin And Walmart Force Western Union To Change Its Business Model?

    Western Union is recognized across the globe for providing a fast, efficient way to move money. Just walk into a Western Union office and you can transfer money to friends, relatives or business ...
  3. Investing Basics

    U.S. Marshals To Auction Off Seized Bitcoins

    The U.S. Marshals are auctioning off 29,656.51306529 bitcoins seized from drug site Silk Road. To be eligible, you'll need $200,000.
  4. Investing Basics

    Why Is Bitcoin's Value So Volatile?

    Bitcoin's value fluctuates due to a confluence of factors, including media hype and perceived value.
  5. Investing Basics

    Could One Bitcoin Come To Be Worth $1 Million? Q&A

    "If Bitcoin lives up to its potential and becomes the working capital of international trade, it could be used for cross border transactions."
  6. Active Trading

    What Is Bitcoin

    Bitcoin is the first decentralized digital currency. It is also sometimes referred to as a virtual currency or a crypto-currency.
  7. Investing Basics

    What is Bitcoin Mining?

    How does Bitcoin get released into circulation?
  8. Forex

    Are People Really Receiving Their Salary Through Bitcoin?

    Did you know people are having their salaries paid with Bitcoin?
  9. Personal Finance

    Bitcoin IRS Tax Guide For Individual Filers

    The is the most comprehensive analysis to date about the IRS tax guidance on virtual currencies like Bitcoin, announced in March 2014: What records to keep, what enforcement challenges you need ...
  10. Investing Basics

    The Strange New World Of The Bitcoin Exchange Futures Market

    We explain the basics of the Bitcoin exchange and futures market.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center