Dogecoin (DOGE) is an open-source, decentralized, peer-to-peer digital currency that allows users to easily send money online. Initially introduced as a "joke currency" in December 2013 by Billy Markus and Jackson Palmer, Dogecoin was inspired by the popular "Doge" meme featuring a Shiba Inu dog. Despite its humorous origins, Dogecoin has established a significant and vibrant community in the cryptocurrency space, supporting various charitable causes and funding projects through the years.
Dogecoin uses the Scrypt algorithm for its proof-of-work (PoW) consensus mechanism, which was initially designed to be ASIC-resistant, although ASICs for Scrypt mining have since been developed. Dogecoin's low transaction fees and fast transaction times makes it suitable for microtransactions and tipping on social media platforms.
Unlike Bitcoin, which has a capped supply of 21 million coins, Dogecoin was designed with a deliberately abundant supply to encourage its use as a tipping currency and to dissuade hoarding. It started with a supply limit of 100 billion coins, which was reached in mid-2015. After reaching this limit, it was decided that Dogecoin would continue to issue 5 billion new coins every year indefinitely, creating a perpetual inflationary supply model.
Dogecoin's popularity can be attributed to its active community and the adoption of the token for tipping and charitable donations, as well as its mention by high-profile individuals and celebrities such as Elon Musk on social media. The community surrounding Dogecoin is known for its compassionate nature, often using the token to raise funds for various causes, from sponsoring sports teams to providing aid in natural disaster situations.
