Dogecoin transactions are validated using the proof-of-work (PoW) consensus mechanism, much like Bitcoin. The Dogecoin protocol sets a complex mathematical problem that needs to be solved to verify transactions. Volunteer nodes (computers) from the Dogecoin network called miners compete to solve this problem. The fastest miner to solve the mathematical problem verifies the transactions in the respective block and adds it to the Dogecoin blockchain. What is dogecoin? Although the cryptocurrency started as a means to poke fun at the wild speculations in cryptocurrencies, it is an open-source peer-to-peer digital currency based on the Scrpyt algorithm. The Scrypt algorithm allows for an easier transaction process and quick confirmation of the transaction as compared to the conventional blockchain technology.
Dogecoin was created as a joke in 2013, but it’s become a very real asset by now. People who have invested in Dogecoin over the years have seen incredible returns as the “meme token” has seen its value rise “to the moon”. The symbol for the coin, Doge, is based on a famous Shiba Inu dog, or Doge, as it was known in memes. Market Capitalization of Dogecoin on a Daily Basis As of September 2022, there were approximately 132.7 billion Dogecoin in circulation, though new coins are created literally every minute. In addition, unlike Bitcoin, which has a hard limit on total issuance, Dogecoin has no limit on the number of coins that can be mined. A seemingly infinite number of coins can be created. The annual issuance of new coins, however, is limited to 5 billion and can continue indefinitely.