What is Dogecoin? Dogecoin is an alternative currency to the traditional monetary system. It’s based on the successful Internet market that allows for instant transfer of money from one place to another. Its distinctive feature is that instead of being redeemable in physical coins, it is tradable only in Dogecoin. It gained its popularity as an internet currency due to the great advertising efforts of Dogehouse, the Dogecoin foundation was established.
Why is Dogecoin successful?
Dogecoin is not like other currencies because of the huge market cap. What is really impressive about it is that despite its low market cap, many new users keep coming in and spending their Doge Coins in the market. Hence, it becomes easier for newcomers to get involved and generate revenue for the Dogecoin community.
There are some cryptosystems that have managed to attract some big players in the trading world. Namely,dogecoins are exchanged very easily and at high rates by some institutional investors. What makes the Dogecoin community so unique is that it has avoided most traditional methods of securing money and transferring funds in the form of bank transfers and credit cards. There are no worries about security and privacy here. The reason for this is the cryptosystem is based on the innovative Dogecoin Payment Protocol (DPP), which is more efficient than the existing payment methods used earlier such as credit cards and PayPal.
Unlike other cryptocoins, Dogecoin doesn’t have a proof-of-work (PoW) system.
Due to its unique system of “dogging” for a dogecoin “chain”, it does not need any PoW system to be successful. However, unlike other currencies, dogecoin successfully uses Scrypt hashcash to increase the speed with which transactions happen in the dogecoin network. This increases the security of the network and makes the coins harder to steal or copy.
So far, the major investors in the Dogecoin marketplace have been speculating that the upcoming Olympics in Brazil will pump a lot of money into the dogecoin market. The increase in popularity of the cryptocurrency could be attributed to the Dogebook, an open source Dogecoin wallet. The wallet is designed for easy management of dogecoin, which includes transaction costs and entire work flow. With a Dogebook, all transactions are done through Dogecoin addresses and it makes transactions faster and more secured. Furthermore, the Dogebook also offers a feature that allows users to make their own customized wallet for them, which can serve as an example to other users. In the end, the Dogecoin marketplace may experience a brisk increase in market cap, but the most important aspect is that this new venture will surely open doors to possibilities of more innovative applications.
Dogecoin’s unique positioning within the list of “altcoins” could be explained by its unique characteristics such as low market price, high transaction fees, and a trustworthy PoW system. Its association with the internet subculture and its association with the cyber world could also be traced to its icon status. Even though Dogecoin may encounter some difficulties because of its extreme popularity, these obstacles can only be taken as opportunities to further expand and deepen the reach of Dogecoin in the future.