Home Glossary
Bybit Learn
Bybit Learn
Apr 3, 2022


Dogecoin is a peer-to-peer altcoin with a fascinating birth story. It’s a cryptocurrency that started as a joke in 2013, and has since exceeded expectations as one of the most valuable cryptocurrencies currently on the market.

What Is Dogecoin?

Dogecoin is a cryptocurrency which has become one of the most prominent meme coins on the market since its 2013 debut.

This self-proclaimed “fun and easy” peer of Bitcoin was never designed to have any practical usability beyond being just another blockchain-based currency. Nevertheless, it has rapidly accumulated a devoted fan base and community who have been developing new applications for Dogecoin. Check out this in-depth article to learn more about Dogecoin’s creation and workings.

The meme origins of the coin added to its almost cult-like following, adding to its appeal and popularity. The fact that Dogecoin uses less energy to mine than other cryptocurrencies certainly hit a sweet note with the growing number of environmentally conscious miners.

Currently, it has a range of use cases. These include third-party online tipping services — making Doge the leading tipping coin on social media platforms — and crowdfunding charitable causes, as diverse as sponsoring a NASCAR driver or Olympia’s sports team

Even its name, based on the trending fictional Shiba Inu dog character, resonates with many as a digital underdog.

After getting a plug from Elon Musk, Dogecoin’s popularity skyrocketed. In January 2022, Dogecoin was added to the list of accepted payments for Tesla, causing its value to rise even further.

How Does Dogecoin Work?

Dogecoin’s mining code was initially inspired by the LuckyCoin and Litecoin cryptocurrency models. The blockchain uses cryptography to maintain the authenticity of these exchanges. This ledger is publicly accessible and frequently updated. Similar to Bitcoin, Doge’s blockchain operates using a proof of work agreement method.

To parody the limited number of bitcoins in existence, Dogecoin’s founders, Australian entrepreneur Jackson Palmer and American software engineer Billy Markus, decided not to cap the amount of mineable Dogecoins. In 2014, the founders decided to enable merged mining for Dogecoin and Litecoin, a massive plus for the coin’s miners.