The one that earns the new coins is the node that adds the new block of transactions to the old block of transactions. Lots of computers work on the same block of transactions at the same time but the only one can win the reward of new coins. So if you do it now, you might still get on that train! The price of Dogecoin increased by more than 300% percent in one day, as you can see in the chart below. This is the time when Dogecoin reached its all-time high and keeps increasing in price significantly. Purchasing Dogecoin takes much less effort, especially when using Binance or KuCoin. Well, actually your computer ( or node) has to do some work! This work involves the confirming and checking of transactions which I talked about in the last section. To play the lottery you have to do some work. Simple, right? Well no, it’s not quite that simple, nothing ever is! What is Dogecoin Mining?ĭogecoin mining is the process of being rewarded with new Dogecoin for checking transactions on the Dogecoin blockchain. So, how do you mine Dogecoin? What’s special about Dogecoin mining? Let’s see. Different ways of mining new currency are used by different coins where different rewards are offered. Note: For more information about blockchain tech, check out our Blockchain Explained guide.Įach cryptocurrency has its own blockchain.
Instead of digging with a shovel for gold, you’re digging with your computer for crypto coins! It is called mining because it’s a bit like digging for gold or diamonds. The process of being rewarded with new currency for confirming transactions is what we call "mining"! The reward for confirming new transactions is new cryptocurrency. If nodes didn’t check transactions, people could pretend that they have more money than they really do ( I know I would!).Ĭonfirming transactions (mining) requires a lot of computer power and electricity so it’s quite expensive.īlockchains don’t have paid employees like banks, so they offer a reward to users who confirm transactions. These groups are called blocks.Įach block of transactions has to be checked by all the nodes on the network before being added to the blockchain.
Nodes put together groups of new transactions and add them to the blockchain. The database is stored across thousands of computers called nodes. Next, I want to talk about how mining works.Įvery cryptocurrency transaction is recorded on a huge digital database called a blockchain. It’s a coin with a dog on it! You love it already, don’t you? So, Dogecoin is a popular altcoin, known for being fun, friendly and kind. Note: A market cap (or market capitalization) is the total value of all coins on the market. Users of social platforms - like Reddit - can use Dogecoin to tip or reward each other for posting good content.ĭogecoin has the 27th largest market cap of any cryptocurrency. Dogecoin has also been used to build wells in Kenya. In 2014, $50,000 worth of Dogecoin was donated to the Jamaican Bobsled Team so they could go to the Olympics.
Just like its mascot!ĭogecoin has become well-known for its use in charitable acts and online tipping. Since then it has become popular because it’s playful and good-natured. They decided to use a popular meme as their mascot - a Shiba Inu dog.ĭogecoin was launched on December 6th, 2013. They wanted people who wouldn’t normally care about crypto to get involved. Palmer and Markus wanted their coin to be more fun and more friendly than other crypto coins. Also, if you decide to buy DOGE instantly, choose a reliable exchange, such as Binance, Coinbase, or KuCoin. Note: Always keep DOGE and other cryptocurrencies in secure wallets (such as Ledger Nano X and Trezor Model T). You’ll also know whether or not Dogecoin mining is for you! While Dogecoin mining is exciting and all that, you should know that DOGE price increased by more than 1000% in a few days, so you should also consider it as a future opportunity coin!
#Dogecoin core mining software#
You’ll know what hardware and what software you need to get started.
#Dogecoin core mining how to#
It can also be mined!īy the time you’ve finished reading this guide, you’ll know all about how to mine Dogecoin and what it is.
It can be bought, sold and traded, just like Bitcoin. These new coins ( that operate on their own native blockchain) are called altcoins or alternative coins. Let's take a lucky guess that you’re here today because you’ve heard a lot about cryptocurrencies and you want to get involved, right? If you're a community person, Dogecoin mining might be the perfect start for you, whether it be from the hardware side of things, or even some reliable mining service providers.īitcoin was the first in 2009, and now there are thousands of cryptocurrencies.
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