Dogecoin is not an ERC20 token; it's a bitcoin fork (2024)

FAQs

Is Dogecoin an ERC20 token? ›

Is DOGE an ERC20 token coin? No, DOGE is not an ERC20 token. While many meme coins exist on the Ethereum network, DOGE runs on Litecoin's chain and has no relation to the Ethereum ecosystem.

Like other cryptocurrencies, Dogecoin employs distributed ledger technology. However, its underlying code is a copy (e.g., fork) of the Litecoin codebase, a fork of the original Bitcoin codebase.

It runs on a proof-of-work network methodology where miners receive payments for validating Dogecoin transactions. Unlike Bitcoin, Dogecoin qualifies as an inflationary coin which means its supply is not limited rather it is indefinite. Currently, there are more than 139 billion Dogecoins in circulation.

Block Generation Times

Bitcoin produces blocks roughly every 10 minutes, while new DOGE blocks emerge every minute. This faster 1-minute block time for DOGE allows for quicker transaction settlement times compared to waiting ~10 minutes for additional Bitcoin confirmations.

Doge is the native cryptocurrency of dogecoin, a parody cryptocurrency based on a viral internet meme of a Shiba Inu dog. At first, the crypto project was created purely as a mockery of other cryptocurrency projects that were being launched at the time.

Part of what made Dogecoin funny is that it was (and is) a full-fledged cryptocurrency, with its own blockchain and a mining system similar to the one used by Litecoin.

Dogecoin cryptocurrency runs on blockchain technology, which uses a distributed, secure digital ledger that stores and adds all transactions made on its network, much like how most cryptocurrencies work. The Dogecoin network also uses cryptography to secure all transactions on its blockchain network.

Dogecoin's primary purpose has always been to be used as a currency. Dogecoin was originally a fork of a cryptocurrency called Luckycoin - itself a fork of Litecoin.

Dogecoin is a risky asset class, like most cryptocurrencies, but unlike many other projects it has only limited utility. It remains to be seen if Dogecoin will ever get back to its prior peak. That said, buying the dip can be an effective long-term strategy alongside diversification and dollar-cost averaging.

Why is DOGE not a good investment? ›

CRYPTO: DOGE

While some investors may see short-term gains during bullish periods, Dogecoin's lack of underlying value makes it inherently risky.

Since Dogecoin doesn't have any notable intrinsic value, its popularity largely determines its worth. That can produce exciting short-term gains but is not a viable strategy for long-term investing success.

Bitcoin's rally may be getting all the attention—perhaps rightly so, as it is the biggest digital asset—but there is astonishing price action in a token based on a meme, Shiba Inu, which suggests animal spirits are spreading across the crypto space.

The mining process of both networks relies on work-of-proof methods. This is the solving of complex mathematical problems to “mine blocks.” While the Bitcoin network is slower and more secure, the Dogecoin network is quicker and less secure.

Dogecoin can be tied to the Ethereum blockchain in order to access some decentralized finance (DeFi) instruments.

Dogecoin holds pedigree as one of the first altcoins, and was created as a fast and instant payment system based on the Litecoin blockchain architecture.

History of the Dogecoin

It was created using the open-source code from Litecoin, which itself was a fork of the Bitcoin blockchain. The main purpose of its creation was to raise public awareness of blockchain technology capabilities.

Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency. It is considered an altcoin and was launched in December 2013 with the image of a Shiba Inu dog as its logo. Dogecoin's blockchain has merit with its underlying technology derived from Litecoin.