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Dogecoin

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This is an old revision of this page, as edited by Crazeman (talk | contribs) at 11:03, 30 January 2014 (Remove misleading statements about 100 billion total). 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
InflationApproximately 98 billion coins will be released by November 2014. Thereafter 5.2 billion new coins per year.

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). 36,244,688,154 (36.24%) Dogecoins have been mined as of the 25th 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] Dogecoins are associated with the motto "To the moon!".[7][8][9]

Overview and history

Dogecoin was created by programmer and former IBM engineer Billy Markus of Portland, Oregon. He was originally trying to tinker with an existing cryptocurrency of Markus's called "Bells" based on Nintendo's Animal Crossing. His hopes were 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).[10] As of 29th January, Dogecoin has a market capitalization of 58.9 million USD.

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.[11] This led Palmer to reach out to Markus.[12]

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.[13] 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,.[14] On December 19, Dogecoin had jumped more than 300 percent in value, rising from $0.00026 to $0.00099,[15] with a volume of hundreds of Bitcoins per day[16] 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.[17]

On December 24, 2013 The Reserve Bank of India cautioned users of Dogecoin and other virtual currencies on the risks associated with them.[18] On Christmas of 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,.[19] The hacker gained access to the platform's filesystem and modified its send/receive page to send any and all coins to a static address.[20][21] This incident spiked Tweets about Dogecoin making it the most mentioned altcoin on Twitter. [22] By January 2014, the trading volume of Dogecoin surpassed that of Bitcoin and all other crypto-currencies combined.[23]

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. The Dogecoin network was originally intended to produce 100 billion Dogecoins.[24][25][26] 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 crypto-currencies like Litecoin or Bitcoin. The currency's popularity and value are rapidly growing;[27] 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,[28] and the Dogecoin to Bitcoin exchange rate rose by 50%.[29][30][31][32][33]

Use and exchanges

There are several online exchanges that offer DOGE/BTC [34] and DOGE/LTC [35] trading. Additionally there are small number of exchanges which offer DOGE/USD [36] [37] and DOGE/CNY [38] 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,[15] 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 and Twitter.[39][40]

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.[41] The public key is the Dogecoin address to which other users can send Dogecoins. The private key, however, must be kept secret and secure.

Technical Implementation

Dogecoin's implementation differs from Litecoin in several parameters. Dogecoin's block time is 1 minute, and the difficulty retarget time is 4 hours. [42] The first Dogecoin block is dated 8 December, 2013. [43] Each block rewards miners with a random number of coins between 0 and a defined maximum, based on the block schedule below. From blocks 600,001 onwards, there will be a fixed reward of 10,000.

Block Schedule

Block Numbers Per-Block Reward Start Date Expected Coins Produced (approx) Expected Total Circulation (approx)
1-100,000 0-1,000,000 (random) 8 December, 2013 50,000,000,000 50,000,000,000
100,001-200,000 0-500,000 (random) 15 February, 2014 [44] 25,000,000,000 75,000,000,000
200,001-300,000 0-250,000 (random) 26 April, 2014 [45] 12,500,000,000 87,500,000,000
300,001-400,000 0-125,000 (random) 4 July, 2014 [46] 6,250,000,000 93,750,000,000
400,001-500,000 0-62,500 (random) 11 September, 2014 [47] 3,125,000,000 96,875,000,000
500,001-600,000 0-31,250 (random) 20 November, 2014 [48] 1,562,000,000 98,437,500,000
600,001+ 10,000 (not random) 28 January, 2015 [49] 5,256,000,000 per year

Coin Supply

There is no fixed maximum number of coins. According to the schedule, approximately 98 billion coins will have been released by November 2014, when block 600,000 is mined. Thereafter, approximately 5.2 billion more coins will be produced per year, in perpetuity. Dogecoin's developers have discussed in public forums whether this should be changed. [25]

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. ^ "Dogechain - The official dogecoin blockchain!". Dogechain.info. Retrieved 2014-01-25.
  6. ^ "An Interview With The Creator Of Dogecoin: The Internet's Favourite New Currency". Junkee.com. Retrieved 2014-01-22.
  7. ^ Andrew Couts (December 19, 2013). "To the moon! Dogecoin fetches 300 percent jump in value in 24 hours". Digital Trends. Retrieved January 22, 2014.
  8. ^ Andrew Couts (January 20, 2014). "Dogecoin users raise $30,000 to send Jamaican bobsled team to Winter Olympics". Digital Trends. Retrieved January 22, 2014.
  9. ^ Derek Ross (December 31, 2013). "Much application. Such coin. Very Android. Dogecoin Wallet now available on Google Play". Phandroid. Retrieved January 22, 2014.
  10. ^ Patrick McGuire. "Such Weird: The Founders of Dogecoin See the Meme Currency's Tipping Point". Motherboard. Vice Media. Retrieved 23 December 2013.
  11. ^ 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)
  12. ^ Rob Wile (19 December 2013). "What is Dogecoin?". Business Insider. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  13. ^ Ashe Schow (19 December 2013). "Internet gold: Doge + Bitcoin = Dogecoin". Washington Examiner. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  14. ^ 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)
  15. ^ 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)
  16. ^ 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)
  17. ^ Rob Wile (22 December 2013). "Dogecoin Prices Crashed This Weekend". Business Insider. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  18. ^ "RBI cautions users of Virtual Currencies against Risks" (PDF). 24 December 2013. Retrieved December 2013. {{cite web}}: Check date values in: |accessdate= (help)
  19. ^ 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)
  20. ^ 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)
  21. ^ 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)
  22. ^ Ofir Beigel (7 January 2014). "Please, not another coin - which altcoins are worth taking a look at". 99Bitcoins. Retrieved January 2014. {{cite web}}: Check date values in: |accessdate= (help)
  23. ^ 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)
  24. ^ 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)
  25. ^ a b "Not actually caped at 100 billion?".
  26. ^ 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)
  27. ^ 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)
  28. ^ "Dogecoin Jamaican Bobsled Team Olympics". Business Insider. 2014-01-20. Retrieved 2014-01-25.
  29. ^ Alex Hern. "It's bobsleigh time: Jamaican team raises $25,000 in Dogecoin | Technology". theguardian.com. Retrieved 2014-01-25.
  30. ^ http://www.latimes.com/business/technology/la-fi-tn-jamaican-bobsled-dogecoin-currency-meme-20140120,0,6318474.story
  31. ^ http://www.businessinsider.com/dogecoin-jamaican-bobsled-team-olympics-2014-1
  32. ^ http://www.pbs.org/newshour/rundown/2014/01/jamaican-bobsled-team-raises-30000-in-dogecoin-for-trip-to-sochi.html
  33. ^ http://www.theguardian.com/technology/2014/jan/20/jamaican-bobsled-team-raises-dogecoin-winter-olympics
  34. ^ http://www.cryptocoincharts.info/#jump-doge-btc
  35. ^ http://www.cryptocoincharts.info/#jump-doge-ltc
  36. ^ AltQuick.co. "Buy and Sell Altcoins for Cash! LTC, PPC, NMC, XPM, FTC and DOGE". AltQuick.co. Retrieved 2014-01-25.
  37. ^ coindesk.com. "Vault of Satoshi Rolls Out New Altcoin Support".
  38. ^ "Bitcoin and Crypto-currency Exchange Platform". Bter.com. Retrieved 2014-01-25.
  39. ^ 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)
  40. ^ 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)
  41. ^ "Donate". Foundation.dogecoin.com. Retrieved 2014-01-25.
  42. ^ "Dogecoin - very currency many coin". Retrieved 30 January 2014.
  43. ^ "Dogechain - The official Dogecoin blockchain!". Blockchain Record for Block 1. Retrieved 30 January 2014.
  44. ^ "Wolfram Alpha query for "8 December 2013 03:55:27 plus 100000 minutes"". Wolfram Alpha.
  45. ^ "Wolfram Alpha query for "8 December 2013 03:55:27 plus 200000 minutes"". Wolfram Alpha.
  46. ^ "Wolfram Alpha query for "8 December 2013 03:55:27 plus 300000 minutes"". Wolfram Alpha.
  47. ^ "Wolfram Alpha query for "8 December 2013 03:55:27 plus 400000 minutes"". Wolfram Alpha.
  48. ^ "Wolfram Alpha query for "8 December 2013 03:55:27 plus 500000 minutes"". Wolfram Alpha.
  49. ^ "Wolfram Alpha query for "8 December 2013 03:55:27 plus 600000 minutes"". Wolfram Alpha.
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