What Is Dogecoin (DOGE)?


Dogecoin (ticker symbol, DOGE), is a cryptocurrency created as a Bitcoin parody in 2013. It originated from the widely popular internet meme “Doge” featuring a Shiba Inu dog with a comical expression. Initially, Dogecoin was intended as a mere joke, just like the meme, but it quickly gained a large and dedicated following and became a popular means of online tipping and micropayments.

Dogecoin is frequently used for charitable donations and now adopted by several online retailers as a payment option.

Key Takeaways

  • Dogecoin was initially created as a parody of Bitcoin in 2013 by Jackson Palmer and Billy Markus, intended as a joke themed after the famous “Doge” internet meme.
  • Regarded as the first “meme coin”, the cryptocurrency gained mainstream attention in 2021 from its support by Tesla CEO Elon Musk.
  • Due to its low transaction fees and fast transaction confirmation time, Dogecoin is well-suited for small transactions, such as online tipping and micropayments.

Dogecoin vs. Bitcoin

Dogecoin and Bitcoin are both decentralized, open-source cryptos that use the proof-of-work (PoW) consensus algorithm. However, there are quite a few notable differences between the two.

One of the main differences between Dogecoin and Bitcoin is their purpose and intended use. Dogecoin came as a parody of Bitcoin initially intended as a joke. It has since evolved into a popular means of online tipping and micropayments that people often use for charitable donations. In contrast, Bitcoin conceived a peer-to-peer digital currency that people mainly use as a means of payment and a value store.

Another key difference between them is their supply. At the current time of writing, DOGE has a circulating supply of around 132 billion coins. Unlike Bitcoin, which has a limited total supply of 21 million, there is no total supply limit on the number of DOGE that can be mined.

Additionally, Dogecoin has faster transaction confirmation times and lower fees than Bitcoin. This makes DOGE ideal for small transactions and online tipping, while Bitcoin suits better for larger transactions and long-term storage.

Overall, while Dogecoin and Bitcoin have some similarities, they serve different purposes and have different features and characteristics. It all comes down to their use case, for both the DOGE community and the core Bitcoin audience.

How does Dogecoin Work?

Dogecoin uses a proof-of-work (PoW) consensus, where network participants can mine DOGE using standard mining hardware such as GPUs. It has low fees and fast confirmations, making it ideally suited for of small transaction amounts and online tipping.

Users that run mining software maintain the blockchain, collectively verifying and adding DOGE transactions to it.

Users who want to send DOGE to someone initiate a transaction and broadcast it to the entire network. The network’s miners then verify that transaction, and compete to add it to the blockchain. Once miners add the transaction to the blockchain and validators confirm it, the funds successfully transfer from the sender’s wallet to the recipient’s wallet.

How Has DOGE Gone Mainstream?

Throughout 2021, Dogecoin experienced a great deal of mainstream support. One of the fundamental reasons for DOGE going viral was its active and supportive community.

We know the Dogecoin community well for their charitable spirit that raised funds for various causes. They built wells in developing countries, and sent the Jamaican bobsled team to the Winter freaking Olympics! All of this helped to generate the buzz and interest in Dogecoin and attracted new platform users.

SpaceX and Tesla CEO Elon Musk has been a very vocal supporter of Dogecoin and has helped to raise awareness of the cryptocurrency on social media. He has tweeted about the coin several times and still does occasionally. Musk now proclaims himself as the “Dogefather”.

Musk’s tweets and statements about Dogecoin generated tons of buzz and interest in the cryptocurrency.

Dogecoin rose amongst the top 10 cryptos by market cap (market capitalization). Musk’s endorsement gave Dogecoin a massive amount of credibility and recognition, which has further fueled its mainstream adoption.

Dogecoin’s buzz also benefited towards increased mainstream interest in the general crypto space. As more and more people become aware of the numerous benefits of decentralized digital currencies, they have become more interested in them.

Dogecoin Foundation

Over the last few years, the DOGE ecosystem has grown and evolved astronomically. It now includes a range of businesses and organizations that use DOGE in various ways. For instance, some online retailers accept DOGE for payments, and several Dogecoin-focused exchanges and wallets make it easy for users to buy and sell it.

We should mention the Dogecoin Foundation that helped raise funds for various charitable causes, founded as a nonprofit in 2014. The foundation focuses on supporting the coin’s development, raising awareness, and raising charities.


DOGE came to light in December 2013. Jackson Palmer, product manager at Adobe, created it to satirize the hype around cryptocurrencies. Billy Markus, a software developer at IBM, joined Palmer to build the software behind the Dogecoin network. The coin’s code was based on Luckycoin, derived from Litecoin and uses Litecoin’s scrypt technology.

Initially, it used a block mining reward that was randomized, but that later changed to a static one in March of 2014. DOGE is a Proof of Work (PoW) coin, a commonly used consensus mechanism in many cryptocurrencies. The coin’s value jumped 300% two weeks after its launch.


Michi Lumin, a core developer of the project, announced the launch of Libdogecoin, a C-library of Dogecoin’s building blocks, a few weeks after the Dogecoin Core 1.14.6 release. Libdogecoin allows developers to create DOGE-compliant products without the need of understanding the technical aspects of crypto functions.

This makes it much easier for non-tech individuals to design products that adhere to Dogecoin standards. Although it only provides a library and not a “runnable” node, Libdogecoin supports multiple programming languages including Node.js, Ruby, and Python.

Dogecoin FAQ

Frequently asked questions regarding DOGE.

What Is Dogecoin Used for?

People use Dogecoin (DOGE) for a variety of purposes, they include:

  1. Online tipping: People use DOGE often for tipping online. You can send small amounts of the cryptocurrency to others to thank them for useful or interesting content through a tipping system. This is particularly practiced on social media platforms such as Twitter or Reddit. Users tip each other for interesting posts or comments.
  2. Micropayments: The network’s fast and low fee transactions make it ideal for small transactions, such as micropayments. DOGE is popular among users who want to quickly and cheaply send small amounts of money.
  3. Charitable donations: The project’s supportive community has raised funds for various charitable causes. From building wells in developing countries to even sending a Jamaican bobsled team to the Winter Olympics. Glad you asked, you heard that right.
  4. Online shopping: Several online retailers now accept Dogecoin for payments. This enables users to buy goods and services using DOGE and further contributes to its mainstream adoption.

Did Elon Musk make Dogecoin?

No, Elon Musk did not make Dogecoin. Software engineers Billy Markus and Jackson Palmer created and launched DOGE in 2013 as a parody of Bitcoin.

The project’s development didn’t involve Elon in any form whatsoever. Instead, he has simply been a vocal supporter of it to help raise awareness.

Can I mine DOGE?

Yes, you can mine DOGE if you have the necessary equipment and software. Mining Dogecoin involves using specialized computer hardware to verify transactions on the Dogecoin blockchain and earn DOGE in return.

In order to mine Dogecoin, you will need the following:

  1. A computer with a powerful GPU: Mining DOGE requires tons of compute power, so you will need a computer with a fast GPU. Ideally a dedicated mining rig with multiple ones.
  2. Mining software: To mine DOGE, you will need to use specialized mining software designed to solve the mathematical mess to validate transactions on the Dogecoin blockchain.
  3. A Dogecoin wallet: In order to receive your DOGE rewards from mining, you’ll need a Dogecoin wallet for deposits.
  4. Joining a mining pool: To increase the chances of mining DOGE successfully, you’ll need to join a mining pool. This is where miners who work together to solve the equations and share the rewards.

If you cannot mine DOGE, you can trade it instead. It’s hell of a lot easier for you to just buy Dogecoin since it’s available in every major exchange.

Keep in mind that mining activity doesn’t determine the coin’s price. The supply and market cap is what makes up the DOGE price.

Final Thoughts

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