Estimated reading time: 2 minutes, 28 seconds
Episode 17 of Blockchain – What is it? features Dogecoin. In this series, we will cover the different types of platforms and on the market right now. We’ll give you a quick description of each blockchain/token, its function, who is their competition and where you can learn more.
Dogecoin is a playful online community, initiated in satire over a popular dog meme in December of 2013. Dogecoin’s intention is to make transferring money and buying goods and services easy, by using an instant digital currency online, as well as to reach a broader community – through branding – than the major digital currency, bitcoin. Their network also enables the same ease of trading into other currencies —digital or traditional– online.
A distinguishing feature of Doge compared to other cryptocurrencies is that it is simple to use to ‘tip’ other people’s content online, if you choose. This creates an interesting value proposition for people who are content creators, and it allows them to build a form of reputation for the content they post or share. This is a bit more meaningful than a simple ‘like’ on Facebook. The Dogecoin community boasts their friendliness and easy integration into a fun and playful network of internet-goers.
Dogecoin is a community built around the token. It is the main feature of the system. The Doge token is used to make it easier to send money and pay for things online, which also includes a simple way to ‘tip’ content that you enjoy or found useful, like reddit gold. This adds some more meaning and value to Internet interactions and content creators online since there is a monetary component.
Dogecoin can be mined like other cryptocurrencies, but unlike most other digital currencies, it does not have a circulation cap. Mining Dogecoin does not require as much extensive equipment as for mining Bitcoin or Ether.
So, overall, Dogecoin primarily functions as a token used for transferring value. It uses it’s own blockchain, but the only use for it is through transacting with the Doge token.
When you look at crypto networks who’s only function is to transfer value almost instantaneously, Dogecoin’s main competitors include Bitcoin, Litecoin, and Peercoin. But one could argue that projects like Dash and Ripple are also competitors. The Doge community doesn’t seem too concerned with competition though; they seem more focused on having a bit of fun on the inter-webs…
Read more about Dogecoin & get some more information and resources by visiting our resources page!
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