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What is Dogecoin (DOGE)? It’s a first-generation cryptocurrency that allows traders to transfer value globally safely. More vendors now also accept the coin globally in transactions, so a lot of investors and users are being attracted to adding Dogecoin into their trading portfolio.
Why traders use DOGE?
It is decentralized currency by Billy Markus who developed it using the Scrypt algorithm. The cryptocurrency was based on an LTC coin fork, the luckycoin. Its name, DOGE, was derived from the famous internet meme, doge, a Shiba Inu photograph.
The primary purpose of DOGE is to allow for peer-to-peer transactions without censorship just like Bitcoin and Litecoin. It is censorship-resistant like Bitcoin. It also has a secure network that can also provide an updated consensus. In fact, cybercriminals should control 51% of its hashing power to modify the blockchain’s state.
The project uses a proof-of-work consensus algorithm, adding to the network’s security. Its network relies on the SCRYPT technology in its mechanism. It’s done to prevent using the high-powered mining rigs of Bitcoin. Thus, users can only mine the coin through dedicated ASIC and FPGA devices.
Traders uses Dogecoin because of its cost and speed, boosting its fast transaction completion at a very low transaction fee. Anyone who would like to save on the cost would be interested on this feature. It has the lowest rates even if users are transferring large amounts. Its average fee isn’t more than $0.01.
In terms of speed, DOGE is one of the fastest when compared to other digital coins, and that’s thanks to the simple mining, allowing for a fast block processing. A block is created once per minute, a speed 2.5 times faster than Litecoin.
DOGE users also use it for charity or good deeds. For example, they’ve raised at least $25,000 to help Jamaica’s bobsled team to the 2014 Olympics.
Some traders use it for its unlimited supply from the initial 100 billion DOGE coins.
The community is also welcoming and friendly, so traders who want to belong and become a part of like-minded individuals use DOGE.