Dogecoin or DOGE is an electronic currency, that is, a form of digital payment. Like bitcoins they are a cryptocurrency or cryptocurrency that is a form of equal and decentralized money that uses cryptography to control its creation, transactions and the attribution of property.
Born as a "joke currency" the dogecoins were created as a bitcoin satire with the aim of reaching even more visibility than the twin cryptocurrency. Based on another electronic currency derived from litecoin, they take the name and logo from Doge, an Internet meme whose protagonist is a dog of the shiba breed.
To understand what dogecoins are we need to explain what blockchain technology is.
The issue of DOGE and the management of transactions are in fact carried out collectively using a decentralized database network that uses the blockchain protocol.
What is the Blockchain
Blockchain is a technology that allows you to create a large database structured in blocks, used to manage the transactions that are shared between all the nodes of the network.
In practice, the blockchain is a gigantic database in which data, instead of being saved on a single server, is saved on multiple machines linked together.
The great strength of the blockchain is its resistance to tampering and hacker attacks. This is because the data does not reside on a single computer but on multiple computers or "nodes" of the network.
Each node and therefore every person using the Dogecoin network can send and receive DOGE instantly and without the need to use sensitive data.
Dogecoins are completely managed by users who use them without using banks or intermediaries of any kind.
DOGEs are open-source. Open source means a software made public by the rights holders in order to allow anyone to make changes to the source code, ie the algorithm written in a programming language.
This means that no one can own or control DOGE directly but anyone can improve the source code or create new services.
How are dogecoins created?
What is mining
To better understand what dogecoins are we try to understand how they are created.
DOGE are generated by a process that is called mining (a term analogous to gold mining, gold mining). The mining process exploits the computing power of the computer using dedicated software and hardware. The software processes and confirms the ongoing transactions on the Dogecoin P2P network. In order to confirm a new transaction, very complex mathematical calculations are required. New DOGE are issued in exchange for the transaction processing and confirmation service.
The Dogecoin network generates and randomly distributes a fixed amount of DOGE after each successful transaction.
These DOGE are distributed to the clients that process the transactions, that is the miners. The miners also deal with the management and security of the Dogecoin network. Every time a purchase is made using Dogecoin they verify that the DOGE spent is actually owned by the buyer and arrives from his Dogecoin wallet.
The probability that the same miner receives the reward for the work done depends on the computing power he adds to the network.
The system that generates and controls the dogecoin does not need a central body because it is the users who are part of it that make it secure in exchange for a profit proportionate to the control activity performed.
Who created the dogecoins?
The dogecoins were created in 2013 by the programmer Billy Marcus.
How much is 1 dogecoin worth?
After understanding what the dogecoin are we explain what they are worth.
The mechanism that regulates the purchase and sale of DOGE is identical to that of other cryptocurrencies and follows the same rules used for the exchange of traditional currency. It is based on the exchange rates calculated based on the demand and supply of dogecoin. As a result the price rises when the demand increases and decreases when the request decreases.
As with all electronic currencies, the value of dogecoins has not yet stabilized and can decrease or increase even a lot in the short term.
To know the value of 1 DOGE we can connect to the Coinmarketcap.com website.
How to get dogecoin for free
In addition to the mining process it is possible to obtain dogecoin for free also in other ways.
On the web there are Internet sites called dogecoin faucet that give DOGE for free
Difference between dogecoin and bitcoin
We conclude the guide on what dogecoins are by explaining what is the main difference between dogecoin and bitcoin.
Bitcoins are limited. Their creator has in fact set a defined number of bitcoins to be able to mine: 21 million. The Dogecoin network instead was created to generate 100 billion dogecoins. Later it was announced that he could generate an infinite number.