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Ethereum Vs. Dogecoin – What’s the Difference?
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Table Of Contents
Savvy traders take the time to learn the differences between Dogecoin and Ethereum. These projects are both titans in the market, with each having changed the crypto-sphere considerably since being introduced. Here is everything you need to know about Ethereum Vs. Dogecoin
What is Dogecoin?
Dogecoin entered the market in 2013, and is widely credited as the first meme coin to gain mainstream popularity. The history of this unique project is filled with twists and turns. Many people are surprised to learn that Dogecoin began as a joke. The token was made by a group of creditors to poke fun at the seriousness at die-hard Bitcoiners.
Like most first-generation cryptocurrencies, the token borrows most of its technical features from Bitcoin. Dogecoin’s developers Jackson Palmer and Billy Markus have stated that it only took a couple of hours to make the token. They reportedly started by taking Bitcoin’s coding and switching out all references from Bitcoin to Dogecoin.
Of course, the project isn’t a direct copy. The developers added some interesting upgrades to the consensus mechanism to improve Dogecoin’s scalability. This strategy also helped to drive decentralization in the ecosystem. Dogecoin has had an interesting history with celebrities driving more attention to the projects as of late.
What is Ethereum?
Ethereum entered the market one year after year after Dogecoin in 2014. Unlike Dogecoin, the network marked a huge upgrade in the capabilities of blockchain networks. The network ushered in the age of smart contract programmability. Ethereum was founded by Vitalik Buterin, Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin.
Second Generation Blockchain
Ethereum can be regarded as the first second-generation blockchain. Unlike Bitcoin, its primary purpose was not to serve as electronic cash, but rather, as a programmable infrastructure for decentralized applications (dApps). This strategy forever changed the crypto market, with nearly every blockchain today having some form of smart contract programmability.
Ethereum is arguably the most innovative cryptocurrency in terms of pioneering market-altering maneuvers. For example, the network is the largest Dapp and DeFi ecosystem in the world. Ethereum deserves recognition for driving the 2017 breakout of crypto with the release of ‘ERC20’ – a token standard which provides users with an affordable way to create tokens for the first time.
This development resulted in a rush of new tokens entering the market. For example, there are over 300,000 ERC-20 tokens in circulation today. Ethereum remains the most popular Dapp and DeFi network.
The protocol is still the reigning king even though it’s slower, less capable, and more expensive than newer protocols. The simple fact that Ethereum remains secure and has so much liquidity makes it a smart choice for many applications despite its shortcomings.
What Problems was Dogecoin Built to Alleviate?
Dogecoin was designed to tackle a serious issue in the crypto market – a lack of fun. It’s too easy to drown new users out about blockchain assets and their security and efficiency, but that doesn’t spark interest or entertain people. Dogecoin leveraged the adorableness of one of the world’s most popular memes to connect with people on a personal level.
Dogecoin provided a faster alternative to Bitcoin when it was released. The developers altered the consensus mechanism from the SHA-256 version to a script-based option. This maneuver improved the protocol’s speed and responsiveness. It also ensured that miners couldn’t use ASIC miners to mine the network at first, which led to sustained decentralization.
What Problems was Ethereum Built to Alleviate?
Ethereum was meant to create more usability within the blockchain sector. The team behind the project wanted to leverage the computing power of blockchains further. They quickly realized that the market needed a reliable and easy-to-use infrastructure. Ethereum provided this to the market and has been the go-to blockchain for developers ever since.
Ethereum was made to be more scalable than the competition at the time. The network can handle 15 transactions per second. This tps rate may seem slow compared to today’s high-performance networks but it was faster than competitors when it launched. Currently, the network is in the middle of a major conversion from PoW to PoS.
How Does Dogecoin Work?
Dogecoin operates as a layer 1 blockchain. The protocol leverages a network of nodes that secure the network and validate transactions. The system enables users to send value internationally in a permissionless manner.
DOGE is the cryptocurrency for the network. Uniquely, DOGE has seen serious support from some of the most famous people in the world. For example, one of the richest men in the world, Elon Musk, has Tweeted multiple times in support of the token. The token has also seen support from famous musicians including Kiss singer Gene Simmons and rapper Snoop Dogg.
How Does Ethereum Work?
Ethereum currently uses a PoW system that relies on miners to validate the state of the blockchain. Developers can leverage various Ethereum standards and tools to streamline their creative efforts. For example, the ERC-20 tokens standard is the most popular in the world. There are also specific standards for token types such as security tokens, stablecoins, and NFTs (nonfungible tokens).
Many people get the crypto Ether (ETH) and its blockchain Ethereum confused. Ethereum is the network that supports the utility token ETH. This confusion is forgivable as it has now become common to refer to Ether as Ethereum for most traders. Interestingly, the planned Ethereum 2.0 update will improve the network’s scalability considerably.
This maneuver is considered necessary by many as Ethereum has high gas fees at the moment. These fees have made it expensive for users to participate in the network. It has also driven developers to seek out lower-cost alternatives in the market.
How to Buy Ethereum (ETH) and Dogecoin (DOGE)
Currently, Ethereum (ETH) and Dogecoin (DOGE) are each available for purchase on the following exchanges.
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from purchasing most tokens. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
Ethereum Vs. Dogecoin – Old School Cryptos Keeping it Fresh
Now that you know the differences between Dogecoin (DOGE) and Ethereum (ETH), you can easily see is how each of these projects fits into your trading strategy. Both tokens have proven to be resilient. As such, there is potential for long-term profitability.
To learn more, make sure to visit our Investing in Dogecoin and Investing in Ethereum guides.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com
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