Dogecoin (DOGE) is a cryptocurrency that started as a joke coin, but it quickly gained a fervent following and real credibility. Dogecoin uses a Proof-of-Work (PoW) algorithm, but it uses Scrypt (using the source from Luckycoin, which was based on Litecoin) instead of SHA-256 (the basis for Bitcoin). As there is no real limit of coins there are nearly 100 billion Dogecoin on the market. Production will slow down once the 100 billion mark is reached.
Dogecoin was intended to be fast, light, cheap, and easy to use. It was intended to reach a broader audience than Bitcoin, as well as separate a cryptocurrency from Bitcoin’s shady past (scandals, Silk Road, etc). Although there aren’t many industrial uses, Dogecoin has gained traction with a very large fanbase. Shibes, as they are known, mainly use DOGE for tipping online. However, this fanbase has done some pretty remarkable things. In 2014, they helped raise funds to send the Jamaican Bobsled team to Sochi for the Winter Olympics, as well as another athlete, Shiva Keshavan. They also built a well in Kenya and sponsored a NASCAR for a race.
In September 2014, Dogecoin officially switched over to merged mining with Litecoin. This was due to several factors, including a significant decrease in value. The decrease in incentive to mine the coin could have been disastrous, with many miners threatening to move to hashing more profitable coins. The move to merged mining brought some stability to the coin, as well as increased security to both blockchains. Indeed, both coins enjoy a much larger hashing pool working together. While there were many voices on both sides of the argument, many viewed the move as an example of how openly competing coins can work together for mutual benefit. It remains to be seen if the move was the correct one, but for now it appears that Dogecoin will continue to thrive.
