What is Dogecoin?
Dogecoin (DOGE) is a meme-themed cryptocurrency launched in 2013 by computer programmers Billy Markus and Jackson Palmer. Based on the famous "Doge" internet meme, the digital currency carries the meme's Shiba Inu dog as its logo and aims to be a more light-hearted and fun alternative to Bitcoin. Dogecoin uses Scrypt technology in its proof-of-work consensus protocol to enable anyone to mine the digital currency using GPUs. As a result, Dogecoin remains one of the most popular mining coins for at-home miners. Despite the rise of specialized mining hardware, which has crowded out small miners in other proof of work coins, such as Bitcoin, Dogecoin remains mineable by small mining operations.
Why is Dogecoin so popular?
Despite fierce competition in the crypto markets, Dogecoin has remained one of the most recognized brands in crypto and a surprisingly high usage rate. At times, Dogecoin even experienced more on-chain activity than some of the leading cryptocurrencies in the market. While its popularity can be partly attributed to its fun factor and lively online community, the cryptocurrency project has also made headlines by raising funds for the Jamaican Bobsled Team which qualified but was unable to afford to attend the Sochi Winter Olympics in 2014, and for sponsoring NASCAR driver Josh Wise in the same year. Arguably, Dogecoin's biggest promoter, however, has been tech pioneer Elon Musk. The Tesla CEO has tweeted his affinity for the dog-theme cryptocurrency on numerous occasions and even changed his Twitter bio to CEO of Dogecoin at one point. Thanks to its one-minute block time and low transaction fees, Dogecoin emerged as a beloved digital currency for social media tipping and microtransactions.