Structure Comparison between BTC vs DOGE
A widely-accepted cryptocurrency like Bitcoin is like the beginning of cryptocurrency. In contrast, it has been compared with Dogecoin, a meme coin that was developed just for fun within the crypto world. The structures behind them seem to be mostly identical, however, today we’ll be diving deeper into the shared similarities and differences between Bitcoin and Dogecoin.
Bitcoin, or the first cryptocurrency in history, was developed in 2009 by Satoshi Nakamoto by bringing the use of blockchain technology to accomplish transaction validation processes. Since then, the price and value of Bitcoin has been responding to the market’s demand and supply. As with higher demand, comes a higher price, which can be attractive towards many groups and industries.
To create a new block on the network, Bitcoin employs the use of the SHA-256 hash function generation method, one of the first hashing technologies used to encrypt data for security. This process requires a large amount of computing power and takes approximately 10 minutes to successfully create a new block. Over the span of 4 years, around 210,000 blocks are created.
Bitcoin has a limited circulating supply of 21 million BTC, wherein every 210,000 blocks created on the blockchain network would yield a lower reward rate and half the amount every 4 years as part of the halving process. In projection of the Bitcoin Halving, every Bitcoin would be fully mined by the year 2140, affecting the price to climb up every 4 years.
Dogecoin was invented in 2013 by Billy Markus and Jackson Palmer who developed the coin with no real purpose other than to be a joke within the crypto communities by duplicating the Litecoin (LTC) structure coding, which took only 3 hours to complete Dogecoin’s development.
Dogecoin uses the Scrypt hashing technology, like Litecoin, to create new blocks inside the network. The network claims to be faster and attains a lower computational power requirement. Dogecoin is an interesting choice for miners because of its mining reward rates and creating a new block takes only around a minute.
An important factor behind the developers’ decision to not limit their circulating supply is because newly minted coins can be lost due to technical issues. Also, networks with no coin limitations can scale up its security precautions easier to prevent any risk of being hijacked by 51% attackers as well as provide affordable gas fee rates.
Difference between BTC and DOGE
The entire structures behind these two networks may seem to be similar, but there are still some underlying differences, such as the block validation’s duration. These two coins offer different benefits to widely attract users or miners with network security as well. With the matter of the 51% attack kept in mind, Bitcoin is impossible to get attacked due to the fact that a tremendous amount of computing power would be required, but theoretically, Dogecoin could face such dangers.
These two coins also differ in terms of their circulating supplies. Dogecoin does not limit their supply to increase the network’s security, but this can affect the price of the coin, whereas Bitcoin provides a limited amount and has a programmed halving process to reduce reward rates, further controlling inflation rates and the resulting elevation of the coin’s price.
Bitcoin can be compared as a digital gold with limited resources. While demand is strengthened everyday, without future development plans, there is no guarantee that Bitcoin will remain as a digital gold forever. With higher technological competition, Bitcoin’s dominance is heavily challenged.
Furthermore, if Dogecoin is able to receive a new technological development plan, it can cease to be the initial joke coin it was designed to be and become a favorite in the crypto community.
Future predictions seem to be impossible to ensure, but conducting in-depth research can help with decision-makings. Investors are highly encouraged to not only conduct research, but also elaborate plans for upcoming volatility in the market through the strategization of risk management schemes.