In short …
fixed 1 Ðoge transaction Fee
So, a bit more explanation needed. The fee is 1 Ðoge per 1KB of data; however, for small transactions it is NOT mandatory and you can pretty much send small amounts of Ðoge for free but you may end up waiting longer or even have the transaction fail. To ensure that the transfer reaches its place safe and quickly, most apps enforce the Ð1 fee. It’s basically like sending a SEPA transfer for free and waiting till the next day, or pay 2€ and receive it in the next hour. Except that it is much cheaper and faster than bank transfers.
more energy efficient mining (environment)
Ðoge has two main advantages compared to Bitcoin.
- Even though it is still a Proof of Work crypto, which means you must mine it to obtain it (aka, solve computational calculations using high powered computers), it is vastly improved compared to Bitcoin. Bitcoin uses an algorithm called SHA256 which is highly secure, but very time consuming and requiring way more harshness (computer power), meaning more energy. On the other hand, Ðoge uses Scrypt like Litecoin, which is vastly more simple and needs less energy. Although in theory less secure than SHA256, there has never been any security breach or reverse engineering for Scrypt, making it more energy conscious than Bitcoin.
- Ðogecoin can be merged mined, also called Auxiliary Proof of Work. This means that you can obtain Ðoge while mining for Litecoin – you get two coins with the same energy and computational power, reducing costs and improving security.
You could also compare crypto as a whole to fiat (paper money). The banking system on itself consumes more energy than Bitcoin (which is not, as we saw, the most energy efficient crypto), this not counting the production of paper currency – which besides energy, consumes an ungodly amount of water. There’s an argument to be made against Proof of Work crypto, yes. But as long as we switch to renewable energy sources for mining (and over 70% of the energy sources for crypto already are renewable), the environmental impact will be much lower than traditional paper fiat and our current banking system.
not store of value (like gold, Bitcoin)
Bitcoin value derives from having a fixed amount. This means that it will always rise in price, because of scarcity. Bitcoin is then akin to gold; there will be one day on the Earth where all the Bitcoins (and gold) will be mined and there will be no more to be obtained. So people will pay enormous amount for these rare resources. And that’s how you could end up paying 0,00000000001 Bitcoins for a loaf of bread, if Bitcoin keeps rising in value.
Ðogecoin is not finite. It’s not infinite either. But one thing we can be certain of, it’s that scarcity will never impact Ðoge price; it can go up in value to to 1$, maybe 7$ in some Utopic dream… but you can be certain that you’ll probably never pay less than 0.05Doge for a loaf of bread… which is a number that we, as people who already use cents in fiat, can process very well.
People won’t keep Ðoge locked up during crisis times because it will double in price. People will have an incentive to actually use it, for its small numeral value, instead of hodling. And this is all because Ðoge is…
This is a term that I think that I originally used to describe Ðoge. Maybe someone had already said it, but I thought I was brilliant by describing it that way.
Ðoge is an inflationary currency, like our fiat. It means that it will be created every year. But unlike the dollar, where in each crisis they just print out more money, Ðoge actually has a limit, or cap, per year; even though it can grow forever and ever, it will never grow faster than 5 Billion Ðoge per year. If you mine 5B Ðoge by March, then that’s it, no more new Ðoge until next year.
What this means is that while Ðoge is in fact inflationary, so more coin is created… the % of inflation decreases.
So, when you have 10B Ðoge, and you add 5B in a year, inflation is 50%. But once you 100B Ðoge (we are at 128B in circulation right now), the 5B now will only account for 5% of inflation. Once you have 1000B Ðoge, inflation rate is now 0.5%. This means that unlike Dollar inflation, which is all over the place depending on how much money someone decides to print, Ðoge inflation is predictable and controlled.
It’s also worth noting that this inflation will also replace lost, destroyed or burnt Ðoge, meaning that the real rate of inflation will actually be lower. It’s hard to estimate for how much, but from every 5B, there will always be some % that will not add to inflation, but simply replace in circulation Ðoge that were destroyed.
A great further read pulled from the archives: https://arstechnica.com/information-technology/2014/02/dogecoin-to-allow-annual-inflation-of-5-billion-coins-each-year-forever/
quick transact times – scalable exchange of goods & services
Ðoge doesn’t propose to solve any new or future problems. It doesn’t aim to solve complicated decentralized issues, or advance the Internet of Things or data sharing. It proposes do do one simple thing: send value, fast, and cheap.
Like money. Nobody wants to wait a long time, until their coffee grows cold, to have their payment validated at Starbucks. You also don’t want to spend $10 in fees to pay for an overpriced $5 cup of joe. This is what currently happens with the two biggest cryptos, BTC and ETH.
Being modeled after Litcoin, Ðogee can be confirmed in one validation or use at most 6. Since the inception of Ðoge, average block times have stayed at 1.05 minutes, and you can confirm this here: https://bitinfocharts.com/comparison/dogecoin-confirmationtime.html
Most people are validated with only one confirmation, so you would be validated within 1 minute of your payment. Not as fast as VISA, but pretty damn fast.
Doge can also handle more transactions than bitcoin (10x more transactions per second, in fact), leading to less overload of the network. This is a very important factor if we want to use Doge to trade; we want many people using Doge, with fast and cheap transactions. Any other alternative would not be viable.
Memes are a quintessential part of human communication. Although they seem a very modern, young millennial thing, the term was coined originally in the 70s, by Dawkins, as a juxtaposition of meme to memory, like gene to genetics. It comes from the greek mimema, or imitation.
Memes do dwell like genes, propagating, evolving, everlasting. And they evolve differently depending on external exposure: religions, in of themselves, are memes, complex memes, that spread like viruses and mutate throughout millennia. Even if we see memes as jokes, they are just an inherent part of the human construct of memory and shared culture, sometimes losing their meaning and origin entirely, but still repeated – “You can’t handle the truth!” – You have heard it, but can you name where, right away?
So Ðogecoin’s meme factor is its bigger strength. The possibility of being everlasting in the human imagination and folklore, much more appealing than science or tech sounding names, that has a story, a mascot, a fiction and fantasy.
The above Tweet and following knowledge were shared by members of the AllThingsDoge Subreddit and Discord group – which is dedicated to helping educate and spread the word about Ðogecoin while dispelling myths and misconceptions about Doge. Huge thanks to @RevyCrimson for sharing the elaboration and to @Polkapolka10 for the original Tweet.
Do you have any questions about what’s been shared here, or have any corrections? Reach out and let us know.