Dogecoin – A P2P Open Source Cryptocurrency
Dogecoin is a cryptocurrency derived from Litecoin. It was created by Billy Markus, a programmer from Oregon. Dogecoin’s logo features the same Shiba Inu from the Doge “meme” and is designed to be a fun cryptocurrency. It was first introduced on December 8, 2013.
Dogecoin Production Schedule and Mining Rules
Dogecoin’s initial production schedule is rather quick. By the end of 2014, there will be roughly 100 billion Dogecoins in circulation. Each subsequent year will produce 5.2 billion coins. More than 50 billion coins were mined by March of 2014.
Unlike Litecoin, Dogecoin has a block time of one minute, and four hours is the difficulty retarget time. For each block, miners are given a reward of a random amount of coins. This may be zero coins, or it may be whatever the defined maximum is for that block. With each block mined, the maximum reward declines. From the 600,001 block on, the fixed reward will be 10,000.
There are only a few commercial applications that accept Dogecoins. However, the currency is becoming popular for “Internet tipping.” Users tip Dogecoins to others for providing useful, unique or interesting content.
It’s also possible to exchange your coins for physical items through online outlets like Twitter and Reddit.
Dogecoins use public-key cryptography much like Bitcoin or Litecoin. Users generate a pair of keys that are cryptographic. One key is public and one is private. The private key is able to decipher encrypted information using the public key.
This allows the owner of keys to freely distribute the public key without worrying about anyone being able to access the encrypted information. Public keys serve as the Dogecoin address where other users are able to send coins. The private key is what allows users to access the Dogecoin wallet.
Exchanges and Value
There are many online exchanges that offer trading for:
BTC38, which is based in China, also supports exchanges. During their first day of trading, the Dogecoin was second to BTC as the most traded currency on the platform.
Trading volume is valued at $1.05 million USD across all major platforms as of January 31, 2014. Cryptsy, Bter and Vircurex are the three exchanges where most of the trades took place.
Many cryptocurrencies have a limit on how many coins can be produced. Dogecoins does not. It is projected that 98 billion coins will be in circulation by January 2015. This is when the 600,000 block is expected to be mined. From this point on, 5.2 billion coins will be produced each year, indefinitely.