Dogecoin

What is Dogecoin?

Dogecoin is a decentralized open-source cryptocurrency that features Shiba Inu, a dog, as the logo. Dogecoin was founded by Billy Markus, and his idea was to bring something fun into the blockchain ecosystem, something that a lot of people could relate to. His idea was to have a blockchain platform where people can have a sense of belonging, and have fun while they are at it.

Dogecoin has a number of unique features, and in some cases, it has even been considered better than Bitcoin.  One of these is the fact that there is an infinite supply of coins on this platform. Dogecoin operates under the proof of work (PoW) algorithm. In this algorithm, users have to perform transactions and have them confirmed before they are listed in the public ledger.

Dogecoin has always been considered more of a joke, and most people barely take it seriously. However, it has an optimistic and loyal community that even with minimal updates from the development team for years, have stayed active, and used the platform to champion for causes in different parts of the world.

To obtain Dogecoin, you can get them from cryptocurrency exchanges that you trust. These exchanges operate in the same way that forex markets do, only that instead of trading in fiat currency, they trade in crypto coins. To trade in an exchange, you must register a trading account, and use your government issued details to verify your credentials.

Alternatively, in case you do not wish to go through the rigorous process of account registration and verification, you can purchase Dogecoin from individuals who already own them. The only problem is that it can take you a very long time before you find someone who is willing to buy or sell the number of coins that you want, and at the price you desire.

What is the problem that Dogecoin Solves?

There are common problems in blockchain technology that need to be addressed. When trying to exchange Bitcoin, for example, there is a risk that your coins might get stuck, because maybe you did not pay a sufficient fee. You have to go back to the drawing board, resubmit your payment and hope the transaction goes through. You will waste a lot of time doing this.

Other than wasting time, such transactions become expensive over time. Through Dogecoin, however, you are able to send your payments faster and for a fraction of what you would generally spend when using Bitcoin.

How does Dogecoin Solve the problem?

Blockchain technology has gained a lot of interest in recent times. Sadly, those who do not have the technical skills usually end up avoiding it altogether, for fear of being scammed in the process. There are platforms that are so technical, it becomes difficult to explain the process to people who lack the knowledge. This has priced a lot of people away from blockchain platforms.

Dogecoin, however, has managed to create a community of users who go beyond the technical and reach out to one another for simple things. This is a community of people who socialize in different things. There are gamers who send coins to one another to purchase in-game credits and resources.

A hacking attempt on Dogecoin saw users lose some 21 million Dogecoin, worth $12,000 on the eve of Christmas in 2014. However, the Dogecoin community would rally behind one another and raise $13,000 to pay back those who had lost their money in this hack. Dogecoin, therefore, has managed to create a sense of empathy in an industry that has barely ever known such.

Dogecoin shares the same mode of operation like Bitcoin and a lot of other cryptocurrencies. What this means is that when you are using Dogecoin, you will be transferring value by securing digital investments and assets through the PoW consensus model.

When you initiate a transaction on Dogecoin, this is encrypted and miners take it up. Nodes within the network confirm this transaction and follow the public keys to determine whether you have the coins needed for the purposed action. As long as there is no double spend, and you have all the coins needed, your transaction gets confirmed and added to the next block.

One of the main differences between Dogecoin and Bitcoin, for example, is the number of coins available. When Dogecoin was released, it was created with a finite supply of coins, capped at 100 billion coins. However, later on, it was updated to have an infinite supply.

In terms of speed, Dogecoin can complete more than 9 times the number of transactions that you would complete with Bitcoin in a 10-minute period. Dogecoin offers immense transaction abilities and this is one area where it outshines Bitcoin.

Bitcoin confirms a block every 10 minutes, while Dogecoin handles a block every minute. This is one of the reasons why transaction confirmation is faster on Dogecoin. As an investor, you can go about your business without worrying about waiting for your transactions to be confirmed, and the uncertainty that lies therein.

What makes Dogecoin better than the competitors?

Over the years, Dogecoin has been resilient even with the lack of updates from the development team. This resiliency has gained it a lot of interest and support, with so many people who were skeptical in the past changing their stand. There are several benefits that make this joke crypto stand out:

Anonymous transactions

With Dogecoin, you are guaranteed anonymity in all the transactions that you conduct online. Anonymity is something that most blockchain platforms struggle with, because they promise private and secure connections, yet they are still run in centralized networks. Dogecoin, on the other hand, is decentralized, and you can be guaranteed your information and data access is private and secure.

All the information and transactions that go on in Dogecoin are encrypted from the moment you join the network. Your transaction details and personal account details are encrypted such that even miners are unable to get this information.

Seizure

By staying anonymous, Dogecoin protects users from loss of their assets in the form of seizures. It is virtually impossible to link the identity of an individual to a transaction. Therefore, it is a good place for investing without the constant worry of third-party interference.

Value addition

Most blockchain projects are often ambitious in their targets, and in the long run, they fail to achieve this. Dogecoin has a very simple target, sending value. This kind of simplicity has made it easy for Dogecoin to improve progressively by focusing on the things that matter.

Tried and tested

Though not so many people talk about it, Dogecoin has actually been in the market for a very long time and survived different scenarios. Bearing this in mind, most of the features that run Dogecoin have been tried, tested and stood the test of time.

Positivity

Dogecoin enjoys an advantage that no other cryptocurrency has enjoyed, and at unprecedented levels. There has been no major update about this platform for years, yet the community of users still keeps growing. More often, platforms that do not get updates for the duration of time Dogecoin has stayed dormant end up losing out on the competition, and even become obsolete.

By design, Dogecoin was never meant to become a market leader. In fact, its value is supposed to remain low, so that it can be used for mundane things like giving tips online. It is this positivity in the Dogecoin community that makes it a promising platform. With updates expected in the coming months, it is a platform that will certainly grow from strength to strength.

How can Dogecoin be categorized?

Dogecoin is an altcoin. It is one of the most widely used coins on the market and has been adopted by lots of cryptocurrency exchanges. It is a peer-to-peer decentralized digital currency that allows users to send money online.

What’s Dogecoin’s vision on Security?

One of the reasons why a lot of people might be joining Dogecoin is the expectation of high rewards as the value of the native coins rises. This mentality has come from the story of Bitcoin, and how its value skyrocketed and early adopters made quite the killing.

Other than that, there are people who own coins so that they are able to take advantage of any opportunity that presents itself in the market. But, what about security? Security should be the first thing you think about when investing in any blockchain platform. Losing coins on the Dogecoin platform is not the same as losing legacy currency coins.

When you lose your coins, they are still available in the Dogecoin network. You might perhaps struggle to gain them back, depending on how they were lost. Coins that are lost when they are sent to the wrong address have simply exchanged hands, but are still within the network.

In case your wallet has been damaged and you lose your coins, these coins are not lost, but they are still within the network. The only difference is that they are now dormant. These coins are still in your name, so they are not lost. To restore them, you need to obtain a good wallet.

There is also the risk of losing your private keys. This denies you access to your coins. These coins are not lost, as it happens in other blockchain platforms. Instead, they are also rendered dormant. When you regenerate your private keys, you can get back your coins.

Hacked accounts, on the other hand, might be a different challenge altogether. Coins that have been lost through hacking have changed hands, and are owned by someone else. They are still in circulation within the network, but you cannot reverse them.

The Dogecoin platform, in general, is secure. The face of the coin might look like a meme, but the team behind Dogecoin are serious about security. To safeguard your coins and any transaction that you conduct in this platform, the developers refined the Proof of Work (PoW) algorithm with AuxPoW. By default, all, if not most blockchain platforms have a 51% risk of attack. However, by switching to AuxPoW, Dogecoin mitigates this risk.

Examples of Dogecoin use cases/applications

Aside from the fact that Dogecoin is cryptocurrency and can be used to transfer value, this blockchain platform is also about having fun. Dogecoin has a robust community that offers support from time to time.

Over the years Dogecoin has been used to support charities and other good causes all over the world. Dogecoin has a very large following on social media, especially by those who fancy the meme behind the logo. There is an active group on Reddit that tip users in Dogecoin whenever they post quality content. This applies to articles or free art that is shared online. Such tips are automatically added to your Dogecoin wallet, and you can use them to trade in services from other users, hold as a form of investment, or tip other users for something that appeals to you.

Dogecoin is also used as a form of payment for goods and services. From business advisory services, web developers, writers, marketing and social media gurus, you can be paid for any service you deliver in Dogecoin. This works in the same way you would be paid in fiat currency. In fact, there are so many online carts that have since incorporated DOGE, the native Dogecoin token as a form of payment just like the Euro and US Dollar. If you share the public address for your wallet, you can also be paid directly.

The Dogecoin charities have gone as far as sponsoring a NASCAR driver in 2014, who raced in a Dogecoin themed car. Other than that, in the same year, the Dogecoin community raised around $30,000 that was used to dig and build wells for clean water in Tana Valley, in Kenya. This same community crowdfunded $50,000 that would send a Bobsled team from Jamaica to the Sochi Winter Olympics.

There is also the option of purchasing Dogecoin for speculative purposes as you would any other fiat currency in forex trading. You must however, understand that prices can be very volatile, and you might have to wait a while before you earn significant returns.

Resources

https://coincheckup.com/coins/Dogecoin

http://dogecoin.com/

http://dogecoin.com/

http://foundation.dogecoin.com/

http://foundation.dogecoin.com/news/
https://medium.com/@dogecoin

https://www.reddit.com/r/dogecoin/comments/24n01l/dogecoin_faq_wat_do_much_confuze/

 

Tether

What is Tether?

Tether is cryptocurrency that allows users to make use of digital currency in the same way they use fiat currency. Tether enjoys the same value that legacy currency has, as a store of value, a medium of exchange, and is considered as a means of investment.

The value of Tether is affixed depending on the local currency within which it is exchanged. Therefore, tethers are used as a store of value in US Dollars, Euros or the Japanese Yen, with more currency units coming soon.

Tether is built in the Bitcoin ecosystem. This means it is one of the most secure open source blockchain technology you will come across. To safeguard the interests of users, Tether is also fully compliant with legislation and regulations in the jurisdictions where it is available. Users must also go through the KYC and AML procedure before they redeem or issue tethers.

What is the problem that Tether Solves?

The definition of money includes terms like a medium of transaction, store of value and investment. There are a lot of assets all over the world that are currently stored in the form of money. That being the case, Bitcoin is a considerably better alternative that can be used to perform the services for which money is, as described above.

Estimates suggest global wealth in excess of 200 trillion dollars held in financial institutions like banks, in fiat currency value. Given that Bitcoin is a much better alternative than fiat currency, the challenge that lies ahead is how to move these assets from financial institutions to the blockchain. This is where an opportunity arises, and Tether comes in.

Financial institutions run on trust. However, as we have seen so many times in the past, trust is not always easy to come by. Many such institutions have gone under after breaching the trust of their stakeholders as the custodian of their assets.

Bitcoin, on the other hand, is an electronic payment system that runs on cryptographic proof, instead of trust. Through Bitcoin, two parties can engage one another and transact without the need for a third party invoking trust. This marked the entry of digital currency.

Among other things, the main benefits of cryptocurrency include borderless convertibility and transferability of assets or value, low cost of transaction, pseudo-anonymity, trustless exchange and ownership, transparency and immunity from the problems that plague the legacy banking system. Even with these benefits, however, cryptocurrencies still face some challenges, including volatility in the market price, lack of proper understanding of blockchain technology, infrequent use by non-technical users.

The concept of cryptocurrency, successful ones to be precise, is to do away with the need for trust. However, in order to implement this, most of the platforms still need a third party or encounter some limitations and drawbacks.

How does Tether Solve the problem?

To completely do away with the need for third parties, Tether is pegged on fiat currency. Tethers are issued on the Bitcoin blockchain through the Omni Layer protocol, meaning that they are crypto tokens.

The tokens are backed by the traditional currency in circulation, so there is no loss of value, and they do not risk volatility in value as has been the case with most of the cryptocurrency in the recent past.

Tethers can be redeemed or exchanged at the user’s convenience, for the underlying fiat currency, or alternatively, the user can also exchange them for Bitcoin in the equivalent spot value. Because of these basic concepts, Tether employs the following techniques to solve the problems that plague other cryptocurrencies:

  • Tethers are available in the Bitcoin blockchain, one of the most secure, and decentralized platforms known today.
  • Anyone who holds tethers can use them in the same way they use Bitcoins
  • Tethers can also be used in wallets, exchanges and can be traded with merchants for goods and services
  • While it is difficult for non-technical users to understand the technical aspect behind the prices of other cryptocurrencies like derivatives or collateralization, the 1:1 fiat currency backing is very easy to understand, which has helped with the uptake.
  • Redemption or issue of Tether is not subject to liquidity limits or price constraints. For this reason, users are free to buy and sell as many tethers as they desire, at the lowest possible fee, and very fast.

What makes Tether better than the competitors?

Tether has managed to get and stay ahead of the pack by combining the best of two worlds. When using Tether, you get to enjoy the best of traditional currency and blockchain technology. At the moment there are lots of people who are still uncertain about blockchain technology and are very adamant about switching from traditional currency. There are others who are also skeptical, but willing to give it a try. With Tether, however, it is easier for both of these types of users, because they have access to everything they need in one place. How does Tether do it?

Stable Currency

When using Tether, you can easily convert fiat currency into digital currency. This is useful as it helps users tether or anchor the value of the currency to the prevailing value of fiat currency like the Euro, US Dollar or the Japanese Yen.

Fully Backed

This is something you do not see all the time, especially with cryptocurrency. Tether has been fully backed by the traditional currency held in the reserves. Tether is backed at a 1:1 ratio, which means that holding $1 in tether is equivalent to holding $1 in fiat currency.

Transparency

Unlike most of the blockchain platforms that are shrouded in secrecy and anonymity about the way they conduct their operations, Tether is an open book. The reserve holdings in Tether accounts are published on a daily basis. These records are also available for professional audit. Upon scrutiny, you will realize that the account reserves always match the number of tethers in circulation.

Integration

There is no secret that Tether is one of the most integrated platforms where you can convert fiat currency to digital currency in the world. You can use, buy and sell tethers at different exchanges, including Shapeshift, GoCoin, and Bitfinex.

How can Tether be categorized?

Tether is a cryptocurrency, just like Ethereum, Bitcoin and many others in the market at the moment. One big difference between Tether and the rest of the cryptocurrencies you will come across is that Tether was designed to be stable. The price is not volatile. This is one reason why it stands out, and a lot of people are drawn to it.

What’s Tether’s vision on Security?

If there is one thing you can be certain about when using this blockchain is that the tethers are stable, secure and reliable, and this is a platform whose integrity is beyond doubt. Tether is a platform that is virtually free from third-party interference and malicious attacks. The blockchain technology used in Tether is world-class, meeting some of the highest international compliance standards, and regulations. The following are some of the security features that are built into Tether that should give you confidence when using this blockchain:

Stability

While most of the other cryptocurrencies in the market at the moment are unstable and tend to experience fluctuating values given the market price demand and supply, Tether seems to be very stable. This is because the Tether infrastructure was designed for stability.

Auditing

As an investor in Tether, you have access to the complete Tether balance sheet. This is important to assure you of the integrity of this network. Besides, from time to time financial institutions and legal authorities might need an audit for different reasons, which means this is a network that is barely struggling with fraud and losses.

Proof of Funds

This is an algorithm that has helped to make the platform more transparent. The Proof of Funds algorithm gives a clear picture of all the transactions that are being done on Tethers, including the updated value of the Tethers, as per the market economy.  You can actually see the entire transaction record of Tether through this algorithm.

Blockchain Technology

Tether commands a lot of trust from users because it is leveraged on blockchain technology. The Tether wallet is encrypted through Omni Layer protocol, and together with smart contracts, this is one of the safest blockchain platforms you can use.

One of the perks of running on blockchain technology is that users get to enjoy the best of transparency and security of one of the leading blockchain platforms in the world. This is a major confidence boost for anyone who is interested in using Tether.

Examples of Tether use cases/applications

Tether was designed to target three groups of users:

  • Individuals
  • Merchants
  • Exchanges

Individuals

There are a lot of individuals who are currently using Bitcoin for different reasons at the moment. This includes profit-seeking traders, long-term investors who use Bitcoins to secure their property, tech gurus who use Bitcoin for privacy and to avoid paying unnecessary fees, developers who are working on cutting-edge technology that might change the world as we know it. Whichever of these categories of users you are in, Tether will be useful to you in several ways, including the following:

  • Eliminate the need for intermediaries or middlemen when carrying out fiat transactions. These transactions can also be carried out anonymously
  • Using secure private keys to store fiat value
  • Ease of moving cryptocurrency in and out of exchanges, alleviating the risk of keeping fiat currency in exchanges. Should you have any concern about an exchange, you can move your money instantly.
  • Avoid the risk of having to open a fiat bank account to store value for future reference
  • Support applications that run in the Bitcoin ecosystem, and also support Tether
  • You can literally perform everything that you do on Bitcoin on Tether

Merchants

For merchants, Tether allows you to stop worrying about payments, and instead pay more attention to your business. At the moment merchants all over the world are concerned about the lack of an affordable, global payment solution. This makes the cost of doing business very high. Instead of worrying about these, Tether offers merchants the following benefits:

  • Ability to enjoy novel services of fiat currency features, like gift cards and microtipping
  • Reduce the cost of doing business, enhance privacy and do away with chargebacks
  • Merchants no longer have to pay conversion fees when exchanging currency between fiat and Bitcoins. Tether also helps them do away with the tedious processes involved.
  • Give the price of their goods and services in fiat value instead of Bitcoin

Exchanges

There is a lot of complication involved in transactions that involve fiat deposits, especially when using legacy financial systems. Most complications that arise are as a result of the risk involved, speed of completing transactions and the cost of transactions. Some of the challenges that users involved experience include:

  • Unfavorable fees for currency conversion
  • Wasting 3 – 7 days to clear international wire transfers
  • Expensive costs for small value transfers
  • Challenges in liaising with banks for security, compliance, and building trust
  • Integration with banks that do not have APIs
  • Identifying the best partners, considering transaction fees, protection against fraud and reversibility of transactions

By taking these into consideration, exchanges that use Tether are able to avoid the complications above, thereby enjoying several benefits in the process, including the following:

  • Ability to carry out any type of transaction that can be done with Bitcoin
  • Using crypto processes to protect customer assets, like HD wallets, cold wallets, hot wallets, multi-signature security, and enjoying the benefit of easy auditing.
  • Adding tethered fiat currencies into the Tether platform as trading pairs
  • Outsourcing fiat custodial services and risks to Tether, thereby only managing the cryptocurrency
  • Accepting cryptocurrency instead of using payment providers like legacy banks, which makes it easy for the users to move currency faster, and affordably.

There are several risks that are associated with holding fiat currency in an exchange. Considering how often financial entities find themselves in insolvency, this is not a very good option. Using tethers, however, customers who use exchanges are exposed to less risk than using fiat currency in the exchanges.

Resources

https://coincheckup.com/coins/Tether

https://tether.to/

https://tether.to/press/

https://tether.to/faqs/

https://tether.to/wp-content/uploads/2015/04/Tether-White-Paper.pd