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Differences between Dogecoin and other Cryptocurrencies

Dogecoin, a decentralized peer-to-peer digital currency that makes sending money online easier.  It is among the most appealing cryptocurrencies for celebrity, perhaps we should call it the celebrity coin as many  notable celebrities  such as Elon Musk, Snoop Dog, Jake Paul, Mark Cuban, Mia khalifa and many others have endorsed it. Dogecoin emerged in 2013 as a brainchild of Billy Marcus, who wanted to develop an inexpensive alternative to bitcoin. As a result, he created a decentralized, peer-to-peer, open-source cryptocurrency based on the Litecoin blockchain. Although this cryptocurrency is based on Litecoin’s blockchain, which is a modification of Bitcoin’s source code, it has a host of differences from other cryptocurrencies.

Difference between Dogecoin and other Cryptocurrencies
Fig.: Dogecoin Meme (credit: Samantha Aishia – ww.gq.com)

For instance, Dogecoin uses the Script algorithm rather than the standard SHA-256 for network data encryption. This aspect makes Dogecoin easy to mine because it does not require sophisticated equipment. Another difference is that Dogecoin subscribes to infinite issuance, unlike the other cryptocurrencies whose issuance is capped. Nonetheless, the original issuance capping was 100 billion issuances but was scrapped later after the development of the coin.

Furthermore, Dogecoin transactions attract much lower transaction fees/commissions compared to other cryptocurrencies. In general, Dogecoin transaction/commission fees have not yet clicked $0.01, unlike the Bitcoin network commission that can hit $10. Interestingly, Dogecoin is also amongst the cheapest cryptocurrencies to acquire as it costs just about $0.50 currently, which is way cheaper than Bitcoin that is costing over $50,000. This means that acquiring a Dogecoin is much easier than most of the other cryptocurrencies.

Dogecoin is also practically used in many countries without legal violations. Particularly, Dogecoin users can use it in paying for goods and services online, unlike other cryptocurrencies that are highly banned. Hence, this means that Dogecoin can be used where bitcoin is practically banned. On a technical page, Dogecoin has a lower mining rate compared to other cryptocurrencies. For example, the mining rate for Dogecoin’s block is 1 minute, which is 2.5 times faster than mining a Litecoin blockchain. In the same vein/way, the transaction confirmation time is also faster than other cryptocurrencies as it takes just 6 minutes, compared to Litecoin’s 15 minutes.

In summary, Dogecoin is a perfect fit for investors looking for inexpensive cryptocurrencies because it requires little capital to buy. This can allow a newcomer to engage in crypto investments in order to learn and gain relevant experience before expanding their trades. Since Dogecoin ranks amongst the 50 topmost cryptocurrencies in terms of market capitalization, it is stable and can easily be trusted. As a result, any upcoming investor should consider investing in Dogecoins to diversify and grow their digital investments.

 

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