What is cryptocurrencies?
Cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. The most important feature of a cryptocurrency is that it is not controlled by any central authority: the decentralized nature of the blockchain makes cryptocurrencies theoretically immune to the old ways of government control and interference. Cryptocurrencies can be sent directly between two parties via the use of private and public keys. These transfers can be done with minimal processing fees, allowing users to avoid the steep fees charged by traditional financial institutions.
What is Dogecoin?
Dogecoin (DOGE) is an open-source cryptocurrency stemming from a fork of the Litecoin codebase. As the name suggests, it’s largely based on the Doge meme that took the Internet by storm in 2013. The original image depicts a dog of the Shiba Inu breed, whose inner monolog is displayed in comic sans font. Billy Markus, a programmer from Oregon, initially came up with the idea for a sort of “joke” cryptocurrency. He reasoned that a more lighthearted coin would have a better chance of attracting mainstream attention than Bitcoin. Around the same time, Adobe’s Jackson Palmer stated that he was “Investing in Dogecoin, pretty sure it’s the next big thing” in a now-deleted tweet. Following some encouragement, Palmer went on to create dogecoin.com. When Markus stumbled across the website shortly after its launch, he reached out to Palmer to make it a reality and began work on what’s now known as Dogecoin. Upon launch, the cryptocurrency rapidly spread across social media. Within months, it hit a multi-million dollar market capitalization.