Dogecoin becomes the second crypto POW in the world. If you follow crypto, you have already heard of Dogecoin. The crypto Dogecoin (DOGE) is often in the news thanks (because?) of its luxury VIP, Elon Musk! Referred to as a coin meme, Dogecoin has gained credit and prominence. Moreover, Dogecoin is now the second crypto after Bitcoin equipped with the POW protocol.
What is Dogecoin (DOGE)?
Before talking about the ranking of POW cryptos, let's talk about what Dogecoin (DOGE) is.
History of Dogecoin
Dogecoin is one of those cryptos that was originally created more as a joke. This is also the reason why we call Dogecoin a “meme coin”. The history of Dogecoin dates back to December 2013. It was during this time that three people developed the code for the DOGE crypto: Billy Markus, Oregon Palmer, and Jackson Palmer.
At that time, in the minds of these developers, the idea was more of a technical challenge. With their project, these three developers wanted to compete with Bitcoin and also finance certain actions.
For example, in 2014, some of the money raised for Dogecoin was used to help the Jamaican bobsled team compete in the Olympics.
Then, over the years, the developers went their separate ways. Thus, Jackson Palmer left the ship, not without resentment towards the crypto field elsewhere.
At the time of writing, the Dogecoin Steering Committee has some very well-known crypto personalities. Jared Birchall (financial representative of Elon Musk) and Vitalik Buterin (creator of Ethereum) are among them.
The characteristics of the Dogecoin blockchain
Unlike many meme coins, Dogecoin has the particularity of having its own blockchain. In other words, to be precise, Dogecoin is a cryptocurrency and not a token. Technically, the code of Dogecoin comes from that of another crypto, Litecoin (LTC).
How many Dogecoin coins are there? Unlike Bitcoin, the Dogecoin network does not limit the number of coins in circulation. At present, the number of DOGE in circulation is over 132 billion according to data from Coinmarketcap.
DOGE developers said they want to stabilize the number of coins in circulation by around 100 billion. If the number is currently higher than 100 billion, in the long term, without a contribution mechanism, it could become lower because of the many "lost" or "destroyed" coins.
For this, the developers have provided a fixed reward for miners. Unlike Bitcoin, this reward does not decrease over time and is 10,000 DOGE. Otherwise, miners receive 10,000 DOGE when they validate a block.
One reason for the lack of desire to limit the number of coins would come from the ambition of Dogecoin. Dogecoin is a crypto that was not designed to be a store of value. Its main purpose is to serve as a means of payment. The Dogecoin coin is therefore by nature designed to be "used" and not stored to make a gain later.
Crypto POW: Dogecoin behind Bitcoin!
Bitcoin and Dogecoin are now the only two cryptos in the world's top 10 equipped with the POW protocol.
Dogecoin, a crypto POW
Dogecoin operates on a POW or Proof-Of-Work consensus protocol. This protocol is similar to that of Bitcoin. If it is effective, it is not efficient.
Indeed, cryptos with POW are under fire because of their carbon footprint. Indeed, mining on POW cryptos is very energy-intensive. The miners are all in competition when it is necessary to validate a block, which “wastes” a lot of energy. In addition, mining involves extremely advanced computing resources.
Faced with this challenge, some cryptos have decided to tackle the problem head-on. This is the case with Ethereum. The second crypto in the world in terms of capitalization, Ethereum was originally designed with the POW protocol.
But as you surely know, Ethereum developers have been working hard for months to make a transition. The goal is to move the Ethereum blockchain from a POW model to a POS (Proof-Of-Stake) model.
POS is already used on many blockchains such as Solana (SOL) or Cardano (ADA). With the shift to POS, Ethereum developers aim to reduce the blockchain's carbon footprint by 99%.
Long-awaited, the transition is now made! The famous "merge" has indeed occurred. Officially, Ethereum, therefore, becomes a blockchain equipped with POS. What about blockchains with POW?
Bitcoin and Dogecoin are now the only POW cryptos in the top 10!
At the time of writing this article, the world's top 10 in terms of market capitalization are:
- Bitcoin (BTC);
- Ethereum (ETH);
- Tether (USDT);
- USD Coin (USDC);
- BNB (BNB);
- Binance USD (BUSD);
- XRP (XRP);
- Cardano (ADA);
- Solana (SOL);
- Dogecoin (DOGE).
In other words, the pressure is now intensifying on these two cryptos. Dogecoin announced in September 2021 a reflection on a transition to POS, a bit like Ethereum did.
However, no major progress has been made in this regard. As for Bitcoin, the developers do not foresee any change from this point of view for the moment.
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