If you follow cryptocurrency, you are already familiar with Dogecoin. The cryptocurrency Dogecoin (DOGE) is often in the headlines because to its luxury VIP, Elon Musk! Dogecoin, sometimes known as a coin meme, has garnered notoriety and significance. In addition, Dogecoin is now the second cryptocurrency after Bitcoin to use the POW system.
What is Dogecoin (DOGE)?
Before discussing the ranking of POW cryptocurrencies, let’s define Dogecoin (DOGE).
The origins of Dogecoin
Dogecoin is one of those cryptocurrencies that was launched mostly as a joke. This is also why we refer to Dogecoin as a “meme coin.” Dogecoin’s history goes back to December 2013. Billy Markus, Oregon Palmer, and Jackson Palmer created the coding for the DOGE cryptocurrency during this period. In the thoughts of these engineers at the time, the concept was more of a technological problem. These three developers sought to compete with Bitcoin and fund specified acts with their software. In 2014, for instance, a portion of the funds earned for Dogecoin were utilised to assist the Jamaican bobsled squad in their Olympic competition.
The developers eventually went their own ways over time. Thus, Jackson Palmer departed the ship, resentful of the crypto field elsewhere. At the time of writing, the Dogecoin Steering Committee consists of a number of prominent crypto figures. Among them are Jared Birchall (the financial representative of Elon Musk) and Vitalik Buterin (the founder of Ethereum).
The characteristics of the Dogecoin blockchain
Dogecoin is unique among meme currencies in that it has its own blockchain. In other words, Dogecoin is a cryptocurrency as opposed to a token. Technically, Dogecoin’s programming is derived from that of another cryptocurrency, Litecoin (LTC).
How many Dogecoins are in circulation? Dogecoin’s network does not restrict the amount of coins in circulation, unlike Bitcoin. Currently, there are about 132 billion DOGE in circulation, according to statistics from Coinmarketcap. DOGE developers have expressed a desire to stabilise the total amount of coins in circulation at about 100 billion. If the number is now more than 100 billion, it might decrease over time without a contribution mechanism due to “lost” or “destroyed” coins.
The creators have offered a set payout for miners as a result. This payout does not diminish over time, unlike Bitcoin, and is 10,000 DOGE. If not, miners earn 10,000 DOGE for validating a block.
Dogecoin’s aspirational nature may account for the absence of a desire to restrict the total amount of coins. Dogecoin is a cryptocurrency that was not intended to be a medium of exchange. Its primary function is as a method of payment. The Dogecoin coin is therefore designed to be “used” and not hoarded for future profit.
Crypto POW: Dogecoin behind Bitcoin!
Bitcoin and Dogecoin are the only two cryptocurrencies in the top 10 that utilise the POW protocol.
Dogecoin, a crypto POW
Dogecoin utilises a Proof-of-Work (POW) consensus protocol. This protocol is comparable to Bitcoin’s. It is not efficient if it is effective. Indeed, POW-based cryptocurrencies are under assault because to their carbon impact. Indeed, POW cryptocurrency mining is very energy-intensive. When validating a block, miners are all in competition, which “waste” a great deal of energy. In addition, mining requires very sophisticated computer resources.
Faced with this dilemma, several cryptocurrencies have chosen to attack it head-on. This is the situation with Ethereum. Ethereum, the second largest cryptocurrency by market capitalization, was initially built utilising the POW system. However, as you are undoubtedly aware, Ethereum developers have been diligently working on a transition for months. The objective is to convert the Ethereum blockchain from Proof-of-Work to Proof-of-Stake (POS).
POS is already implemented on other blockchains, including Solana (SOL) and Cardano (ADA). With the transition to POS, Ethereum developers want to cut the blockchain’s carbon footprint by 99 percent.
The long-awaited transfer is finally complete! The renowned “merge” has happened. Officially, Ethereum is now a blockchain with POS capabilities. What about POW-based blockchains?
Bitcoin and Dogecoin now the only POW cryptos in the top 10!
At the time of writing this article, the ten largest market capitalizations in the world are as follows:
- Bitcoin (BTC);
- Ethereum (ETH);
- Tether (USDT);
- USD Coin (USDC);
- BNB (BNB);
- Binance USD (BUSD);
- XRP (XRP);
- Cardano (ADA);
- Solana (SOL);
- Dogecoin (DOGE).
Ripple (or XRP), BNB, Solana, Cardano, and Ethereum are not POW cryptocurrencies. In conclusion, if we eliminate stablecoins (Tether, Binance USD), Bitcoin and Dogecoin remain!
In other words, the pressure on these two cryptocurrencies is rising. Similar to Ethereum, Dogecoin stated in September 2021 its intention to switch to POS. However, no significant advancements have been made in this regard. Regarding Bitcoin, the developers do not anticipate any change in this regard at this time.