What is Dogecoin?
Dogecoin was created in 2013 as a satirical representation of Bitcoin. It was a time when Bitcoin was booming and becoming a defining part of the netizen culture. Dogecoin was created by two developers namely Billy Markus and Jackson Palmer.
The developer duo intentionally used the image DOGE as title for its platform which was a popular internet meme. Dogecoin blockchain used Scrypt as hashing algorithm and made tokens more accessible for independent miners and promoted decentralized networks.
Even though Dogecoin was intended as a satire of the DeFi sector, it was reclaimed by the cryptocurrency community as a legitimate digital currency. The comical appearance of the digital currency was transformed into a fun alternative to other digital currencies operating in the industry.
Dogecoin started the trend of meme coins in the crypto sector. With time, the philanthropic undertakings of the project and social media mentions by personalities such as Elon Musk led to popularity.
What is Shiba Inu?
Shiba Inu is also one of the most popular meme currencies. Shiba Inu was based on the Ethereum blockchain and was introduced in 2020 as an alternative to Dogecoin. This project was started by a pseudonymous founder known as Ryoshi as a decentralized network.
Shiba Inu native token SHIB gained massive traction that also featured a Shib Inu dog as logo. Ryoshi also published a white paper and roadmap for the Shiba Inu project.
Shiba Inu uses the proof-of-stake verification method and working on adding proof-of-authority (PoA). Shiba Inu has introduced important additions to the Ethereum network such as added scalability and decentralization. The total supply of SHIB is capped at one quadrillion tokens.
Similarities Between Dogecoin and Shiba Inu
Dogecoin and Shiba Inu are meme coins that leverage the internet culture and branding methods. Both projects use Shiba Inu as the logo for their project and often share the cultural references. Therefore, investors participating in Dogecoin communities also tend to invest in Shiba Inu tokens.
The online presence of Shiba Inu and Dogecoin investors is strong and participate in projects such as tipping, memeing, and running social media campaigns.
At the same time, the popularity of both meme coins is promoted by internet personalities such as Elon Musk. In this manner, the market cap of Dogecoin and Shiba Inu tokens often reach top 10 cryptocurrencies around the globe.
The market cap of Dogecoin was noted at $8.2 billion while Shiba Inu market cap recorded $3.9 billion considering its later introduction.
Differences Between Dogecoin and Shiba Inu
Shiba Inu and Dogecoin are as different from one another as any two cryptocurrency variants. At the time of Dogecoin’s introduction, the total supply of Dogecoins was capped at 100 billion.
However, later the project removed the supply limit and set it at infinite to disable hoarding and speculation. At present, Dogecoin issues 5 billion new coins per year.
On the other hand, Shiba Inu supply cap was also removed later on account of issues regarding scarcity and impact on price movement. Shiba Inu total supply is 1 quadrillion. Shiba Inu has a unique consensus model that combines attributes from PoS and PoA consensus model.
In this manner, the project increases scalability and decentralization for native blockchain namely Ethereum.
Dogecoin has a permanent block reward of 10,000 DOGE coins per block. Meanwhile, Shiba Inu has removed the block rewards and its supply does not follow the conventional block reward system.
In the same manner, Dogecoin block confirmation time is set at one minute which can process 33 transactions per second. On the other hand, the block confirmation time for Shiba Inu is around 13-15 seconds which is subjected to variations based on active investors.
As per Bybit, Dogecoin ATH was recorded at $0.731578 on 7th May, 2021 while SHIB ATH was recorded at $0.00008616 on 27th October, 2021.
Conclusion
Dogecoin and Shiba Inu are two of the most popular meme coins. Investors can consider adding these cryptocurrencies to their portfolio by considering factors such as risk tolerance, technical infrastructure investor dynamics, and community interaction.
