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Dogecoin

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This is an old revision of this page, as edited by Kapooht (talk | contribs) at 18:30, 24 January 2014 (Restructured a sentence in order to prevent misinterpretation over mined coined.). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Dogecoin
File:Dogecoin logo.png File:Dogecoin alternate logo.png
Official logoAlternative logo
Unit
PluralDOGE, Dogecoins
SymbolD,Ɖ‎
NicknameDoge
Denominations
Subunit
 0.001mDOGE (millidoge)
 0.000001μDOGE (microdoge)
Demographics
Date of introductionDecember 6th, 2013
User(s)International
Valuation
InflationLimited release, production rate before this limit re-evaluated with the production of every block (at a rate of approximately 1 block per minute) based on the difficulty with which Dogecoins are produced, eventually leading up to a final total of 100 billion.

Dogecoin (/doʊʒ.kɔɪn/[1], code: DOGE, symbol: Ɖ and D), is a Litecoin-derived[2] cryptocurrency that features the Shiba Inu from the 'Doge' Internet meme on its logo.[3][4]Cite error: The <ref> tag has too many names (see the help page).Cite error: The <ref> tag has too many names (see the help page). Of the 100 billion total, 34,593,577,154 (34.59%) Dogecoins have been mined as of the 23rd of January 2014.[5] While there are currently few commercial applications for Dogecoin, the currency is gaining traction as an Internet tipping system, in which social media users grant Dogecoin tips to other users for providing interesting or noteworthy content.[6]

Overview and history

Dogecoin was created by programmer and former IBM engineer Billy Markus of Portland, Oregon, who was originally trying to tinker with an existing cryptocurrency of Markus's called "Bells" based on Nintendo's Animal Crossing, in hopes of reaching a broader demographic than the investors who made up Bitcoin's economy and something that wouldn't be involved with the controversial history behind Bitcoin (namely its association with the Silk Road).[7] At the same time, his friend Jackson Palmer, a worker for a marketing department in Sydney, Australia for Adobe Systems, and the original individual who first conceived of the idea for Dogecoin, was encouraged by a student at Front Range Community College on Twitter to make the idea reality,[8] leading Palmer to reach out to Markus.[9] After getting several mentions on Twitter, Palmer bought the domain dogecoin.com, which was shown to Markus and quickly began the partnership between Markus and Palmer, launching the coin shortly after the development of Markus' Dogecoin wallet was done.[10] Within a couple weeks of launching the currency, a significant portion of available DOGE had already been mined. Over 6% of the total amount of 100 billion DOGE was already mined by December 17, 2013,[11] and on December 19, Dogecoin had jumped more than 300 percent in value, rising from $0.00026 to $0.00099,[12] with a volume of hundreds of Bitcoins per day[13] during a time when Bitcoin and many other cryptocurrencies were reeling from China's decision to forbid Chinese banks from investing Chinese Yuan into the Bitcoin economy.[2] On the 22nd of December, Dogecoin experienced its first major crash by dropping by 80% due to large mining pools seizing opportunity in exploiting the very little computing power required at the time to mine the coin.[14] On December 24, 2013 The Reserve Bank of India cautioned users of Dogecoin and other virtual currencies on the risks associated with them.[15] On the day of Christmas in 2013, the first major theft attempt of Dogecoin happened when millions of coins were stolen during a hacking attempt on the online wallet platform Dogewallet,[16] due to having the hacker gaining access to the platform's filesystem and modifying its send/receive page to send any and all coins to a static address.[17][18] By January 2014, the trading volume of Dogecoin surpassed that of Bitcoin and all other cryptocurrencies combined.[19]

Markus based Dogecoin on the existing currency Litecoin,[2] which also uses scrypt technology in its proof-of-work algorithm, meaning that miners cannot take advantage of specialized Bitcoin-mining equipment to mine at higher speeds[citation needed]. The Dogecoin network will produce 100 billion Dogecoins.[20][21] Despite Dogecoin's original purpose as a proof-of-concept and a play on the internet meme of the same name, there are communities dedicated to it and several minor exchanges that trade it for other established cryptocurrencies like Litecoin or Bitcoin. The currency's popularity and value are rapidly growing;[22] the baseline price on January 7, 2014 was approximately 4600 DOGE to 1 United States dollar. As of January 20, Dogecoin is trading on cryptocurrency exchanges at an average high of approximately 0.00000260 BTC per DOGE, or about 500 DOGE to 1 USD.

On January 19, a fundraiser was established by the Dogecoin community to raise $30,000 for the Jamaican Bobsled Team, which had qualified for, but could not afford to go to, the Sochi Winter Olympics; $30,000 was donated by the second day,[23] and the Dogecoin to Bitcoin exchange rate rose by 50%.[24]

Use and exchanges

While there is only one DOGE/USD [25] and one DOGE/CNY [26] exchange, there are several online exchanges that handle DOGE/BTC [27] and DOGE/LTC [28] trading. The price is highly volatile due to the relatively short existence of the currency. As of Dec 19th 2013, the price for one DOGE was $0.00095,[12] although this hasn't been a deterrent for exchange since people are trading real-world items in exchange for DOGE on major online communities such as Reddit.[29][30]

Transactions

Dogecoin functions using public-key cryptography, in which a user generates a pair of cryptographic keys: one public and one private. Only the private key can decode information encrypted with the public key; therefore the keys' owner can distribute the public key openly without fear that anyone will be able to use it to gain access to the encrypted information. All Dogecoin addresses are public key hashes; they are a string of 34 numbers and letters starting with the letter D. An example address (public key) is DJ7zB7c5BsB9UJLy1rKQtY7c6CQfGiaRLM, that belongs to Dogecoin.com.[31] (The private key, however, must be kept secret and secure). The public key is the Dogecoin address to which other users can send Dogecoins.

References

  1. ^ Stephen Hutcheon. "The rise and rise of dogecoin, the internet's hottest cryptocurrency". Sydney Morning Herald. Fairfax Media. Retrieved 23 January 2013.
  2. ^ a b c David Gilbert (20 December 2013). "What is Dogecoin? The Meme that Became the Hot New Virtual Currency". International Business Times. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  3. ^ Andrew Couts (12 December 2013). "Wow. Dogecoin is the most Internet thing to happen, ever". Digital Trends. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  4. ^ Brittany Hillen (10 December 2013). "Dogecoin digital currency takes on Bitcoin with a bit of meme flair". Slashgear. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  5. ^ https://dogechain.info/chain/Dogecoin/statistics
  6. ^ http://junkee.com/an-interview-with-the-inventor-of-dogecoin-the-internets-favourite-new-currency/27411Dogecoins
  7. ^ Patrick McGuire. "Such Weird: The Founders of Dogecoin See the Meme Currency's Tipping Point". Motherboard. Vice Media. Retrieved 23 December 2013.
  8. ^ Jason Mick (18 December 2013). "Dogecoins and Its IBM Developer Ride Meme to $130M+ Fortune". DailyTech. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  9. ^ Rob Wile (19 December 2013). "What is Dogecoin?". Business Insider. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  10. ^ Ashe Schow (19 December 2013). "Internet gold: Doge + Bitcoin = Dogecoin". Washington Examiner. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  11. ^ Dario Marchetti (19 December 2013). "Dogecoin, la valuta digitale nata da un meme" (in Italian). Wired Italia. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  12. ^ a b Andrew Couts (19 December 2013). "To the moon! DogeCoin fetches 300 percent jump in value in 24 hours". Digital Trends. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  13. ^ Nekomata (25 December 2013). "2014: The Year of Dogecoin? And where to buy DOGE". KonNeko.com. Retrieved January 2013. {{cite web}}: Check date values in: |accessdate= (help)
  14. ^ Rob Wile (22 December 2013). "Dogecoin Prices Crashed This Weekend". Business Insider. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  15. ^ "RBI cautions users of Virtual Currencies against Risks" (PDF). 24 December 2013. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  16. ^ Ashley Feinberg (26 December 2013). "Millions of Meme-Based Dogecoins Stolen on Christmas Day". Gizmodo. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  17. ^ Catherine Shu (25 December 2013). "Such Hack. Many Dogecoin. Very Disappear. So Gone. Wow". TechCrunch. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  18. ^ Salvador Rodriguez (26 December 2013). "Millions of Dogecoins, currency based on a meme, are reported stolen". Los Angeles Times. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  19. ^ John Russell (15 January 2014). "Dogecoin is the Bitcoin world's most traded currency, but it's unlikely to be its most valuable". The Next Web. Retrieved January 2014. {{cite web}}: Check date values in: |accessdate= (help)
  20. ^ Danny Vega (9 December 2013). "Dogecoin: 5 Fast Facts You Need to Know". Heavy.com. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  21. ^ Miles Klee (10 December 2013). "With its own cryptocurrency, Doge has officially conquered 2013". The Daily Dot. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  22. ^ John Law (13 December 2013). "Patent Nonsense, Coinbase Futures, and Who's a Good Doggie? You Are!". CoinDesk. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  23. ^ http://www.businessinsider.com/dogecoin-jamaican-bobsled-team-olympics-2014-1
  24. ^ http://www.theguardian.com/technology/2014/jan/20/jamaican-bobsled-team-raises-dogecoin-winter-olympics
  25. ^ https://www.altquick.co
  26. ^ http://bter.com
  27. ^ http://www.cryptocoincharts.info/#jump-doge-btc
  28. ^ http://www.cryptocoincharts.info/#jump-doge-ltc
  29. ^ Nathan Ingraham (16 December 2013). "Bitcoin is so 2013: Dogecoin is the new cryptocurrency on the block". The Verge. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  30. ^ J. Duaine Hahn (16 December 2013). "Move Over Bitcoin: Dogecoin is Here". Complex Tech. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  31. ^ http://foundation.dogecoin.com/donate
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