You have probably heard the name dogecoin, and it’s very popular because Elon Musk invested in this crypto and supported this one. However, if you don’t know anything about this at all, then get an idea for the below.
What Is Dogecoin?
It is an open-source, peer-to-peer cryptocurrency that has a dog face as the logo, and it was launched in 2013. This digital coin uses the Proof-of-work consensus mechanism, and this currency has a good reputation in the market. Now, all crypto traders can buy this currency from almost all the crypto exchanges and can easily exchange them there.
What Are the Features of Dogecoin?
The features of Dogecoin are:
No Maximum Supply Limit
If you are familiar with cryptocurrencies, then you know that almost all major cryptocurrencies have some supply limit. For example, Bitcoin is only limited to 21 billion. But Dogecoin doesn’t have that limit. It has an unlimited supply of blocks. At the same time, when a miner mines a new block, he or she is rewarded with 10,000 Dogecoins. And it’s a fact that every minute new blocks are created and stored. So, daily, 14,400,400 new Doge tokens are created and stored. Then they are circulated in the market that has total capital of $31.67 billion and $0.24 per dogecoin.
Like all cryptocurrencies, one of the key motives for creating Dogecoins is to make the digital currency decentralized. Now, Dogecoin is highly decentralized, and no single entity is in control of this currency, and its security depends on the hands of people. However, this decentralization depends on how many nodes a crypto network has. Well, Dogecoin has almost 1090 nodes in the network. On the other hand, Bitcoin has 10,000 nodes in the network on the entire planet. However, some experts claim that they control more than 50% of the Dogecoin network, and that makes it very vulnerable to security.
We all know that transaction is one of the key points when we talk about cryptocurrency. That is because people invest in those digital cryptos so that they can make faster transactions. However, the Dogecoin transaction rate is 33 transactions per second. That means Dogecoin can complete 33 transactions every second. It’s faster than Bitcoin and Ethereum. Where Bitcoin can complete 7, and Ethereum can complete 15 transactions per second.
Another factor that peoples consider when they invest in cryptos is the transaction fees. I mean, how much will every transaction on the system cost you? Well, Dogecoin won’t cost you even a dollar. It will charge you a few cents or $0.44 for each transaction. So, it will save a lot of your money when you use this cryptocurrency.
Dogecoin is a crypto that uses a Proof-of-Work mechanism in the blockchain that is excellent because every miner has to prove their work with their computer power, so it won’t be easy for others or even for skilled hackers to hack into the blockchain and alter your information so that they can steal your crypto.