What is Dogecoin?
Dogecoin is a cryptocurrency created in 2013 by software engineers Billy Markus and Jackson Palmer. It was meant as a light-hearted joke, using the Shiba Inu dog from a popular internet meme as its logo.
Despite its playful start, Dogecoin built a large and active online community. Its coin is DOGE, and it is often described as the original meme coin: a coin whose popularity comes mostly from internet culture rather than from a specific product.
How does it work?
Dogecoin is based on code that came from Litecoin, which itself came from Bitcoin. It uses proof of work, so miners compete to add new blocks and earn DOGE as a reward. It uses a mining method called Scrypt, and it can be mined together with Litecoin in a process known as merged mining.
Unlike Bitcoin, Dogecoin has no maximum supply. A fixed amount of new DOGE is created with every block, so the total supply keeps growing at a steady pace.
What is it used for?
Dogecoin is mainly used for:
- Tipping and small payments in online communities
- Payments with merchants that accept it
- Speculative trading, often driven by social media
- Charity and community fundraising campaigns
Dogecoin has few features beyond sending and receiving coins, and it does not run complex smart contracts. Its appeal comes largely from its community, its low fees and its well-known brand rather than from new technology. Celebrity comments and online trends have often played a big part in its attention.
Key facts
- Launched: 2013
- Creators: Billy Markus and Jackson Palmer
- Consensus: proof of work (Scrypt), merge-mined with Litecoin
- Blockchain: its own network, Dogecoin
- Supply: no maximum; 10,000 new DOGE are created with each block
Explainer written by Finvane from official project documentation. It is not investment advice.