The concept of world of cryptocurrency was published in a whitepaper in 2009 by Nakamoto, but the identity of the founder of this first crypto is still unknown to the world. Today, people use their e-wallets, debit cards and credit cards to make online payments, but they have to pay a certain fee for each transaction. Apart from that, you need to wait for a few days to complete your transaction through the bank, and you can avoid such hassles by using bitcoin. People can transfer funds within a few minutes with bitcoin and do not need to pay a hefty transaction fee.
What is Dogecoin?
Dogecoin is popularly known as a meme coin based on open-source P2P cryptography. It was launched in 2013, and it has gained huge popularity due to its mascot Siba Inu Dog. People can use it for payment and purchases, but it does not have much store value like bitcoin.
Differences between Dogecoin and bitcoin:
After the dramatic rise in the bitcoin industry, Dogecoin was introduced with a dog mascot as an alternative cryptocurrency in the market. It was not intended to introduce a strong network that can replace the BTC in future. But bitcoin was launched for serious purposes, and the founder of this crypto launched this coin to felicitate online transactions faster, at lower transaction fees. Bitcoin has a store value that Dogecoin does not have. However, you need to check the risk tolerance before you choose crypto because the safest crypto ‘bitcoin’ is also volatile, and you have to invest your funds in these coins and tokens after proper research. Here you can find some differences between bitcoin and Dogecoin:
- Dogecoin is not capped within a certain limit like bitcoin, and it can get affected by inflation. The endless supply of bitcoin can decrease the value of this crypto. Bitcoin is available in a limited number, and people cannot mine more than 21 million coins.
- Dogecoin can process 33 transactions per second, which is greater than bitcoin. When it comes to scalability and executing the transactions, then Bitcoin can process around 7 transaction per seconds. Hence, it becomes one of the key drawbacks of this crypto.
- People know that the value of bitcoin can fluctuate by thousands of dollars per day, and you can find some automatic system on crypto exchanges, known as a trading boat, to calculate or predict the price of bitcoin. But you cannot predict the price of Dogecoin, because it is not stable as bitcoin, and the price of this coin can go down at any time.
- Bitcoin is the first cryptocurrency launched in 2008, and it is based on a decentralized network where miners can add nodes to fill the blocks of the BTC blockchain. To validate the transactions with bitcoin, miners have to add a new block to its network. On the other hand, Dogecoin was launched in 2013, which got the limelight for its emblem – Shiba Inu Dog.
- You can use bitcoins for various purposes. For example, you can use your coins to buy goods and services, and bitcoin is accepted as a valid payment mode by real estate, medical, automobile, food industry and travel industries. On the other hand, Dogecoin can be used as a mode of payment between two users, and you can send your coins to another user, but you cannot pay with your Dogecoin.
- BTC was introduced as an alternative currency and has a great store value. But Dogecoin was launched as a parody of bitcoin and is basically a meme of bitcoin.
- All transactions made with bitcoin are stored in a public ledger where the proof-of-work model is the backbone of this network. You can find such details in this public ledger based on blockchain technology. Dogecoin uses the same network, but the mining process of Dogecoin can take less power and time. SHA-256 algorithm used by Bitcoin can take more power that can impact the environment. On the other hand, Dogecoin can save the environment by reducing mining power and energy usage.
Closing thoughts
Bitcoin operates on Elliptic Curve Digital Signature Algorithm (ECDSA) with the elliptic curve secp256k1. On the other hand, Dogecoin uses sa crypt algorithm to protect the transactions. You can invest in bitcoin through British bitcoin profit.