Dogecoin is a cryptocurrency based off of Litecoin. It was created back in 2013 by Billy Markus (the same guy who created litecoin) and Jackson Palmer (who is best known for his work on BitTorrent). Dogecoin is often referred to as “The meme coin.” The name comes from a popular internet meme called doge. The image depicts a Shiba Inu dog wearing a Santa hat. The currency’s logo features a similar looking dog.
2. Proof of stake:
Proof of stake (PoS) is a consensus algorithm that was first proposed by Charles Hoskinson in 2014. It is based on the idea of having a network of validators who have stakes in the network and are rewarded for their contribution to the network. PoS is different than proof-of-work (PoW), where miners compete to solve complex puzzles to validate transactions. In PoS, the validators are not competing; instead they are incentivized to contribute to the network.
The goal of PoS is to create a system that is decentralized, secure, and fair. A blockchain network that uses PoS is called a Proof-of-Stake Blockchain Network (PoSBN). PoSBNs are similar to traditional blockchains in that they use a distributed ledger technology that records transactions between two parties efficiently and transparently. However, unlike traditional blockchains, PoSBNs do not require miners to validate transactions. Instead, nodes (validators) are rewarded for securing the network.
In PoS, each node holds some amount of coins and contributes them to the network. If a node successfully secures the network, it receives rewards proportional to its stake. Nodes are selected randomly at the beginning of each round and remain active until the end of the round. Once the round ends, the selection process repeats.
A PoS protocol can be divided into three parts:
1. Selection Process
This includes the process of selecting validators for the network. Validators are chosen randomly at the start of each round. Each validator’s coin balance determines how long she remains active. Validators are removed after a certain number of blocks have been produced.
2. Staking Process
Once validators are selected, they begin staking. Staking involves contributing coins to the network. Validators receive rewards for securing the network. Rewards vary depending on the type of validator.
3. Reward Distribution
Reward distribution occurs once the round ends. Validators who contributed the most get the largest reward. Validators who contributed less get smaller rewards.