How Bitcoin Works

 Fortunately, it's easier to define what Bitcoin actually is. It's software. Don't be fooled by stock images of shiny coins emblazoned with modified Thai baht symbols. Bitcoin is a purely digital phenomenon, a set of protocols and processes.

It also is the most successful of hundreds of attempts to create virtual money through the use of cryptography, the science of making and breaking codes. Bitcoin has inspired hundreds of imitators, but it remains the largest cryptocurrency by market capitalization, a distinction it has held throughout its decade-plus history.

(A general note: according to the Bitcoin Foundation, the word "Bitcoin" is capitalized when it refers to the cryptocurrency as an entity, and it is given as "bitcoin" when it refers to a quantity of the currency or the units themselves. Bitcoin is also abbreviated as "BTC." Throughout this article, we will alternate between these usages.)

Bitcoin vs. Ethereum: What's the Difference?

 Bitcoin vs. Ethereum: An Overview 

Ether (ETH), the cryptocurrency of the Ethereum network, is arguably the second most popular digital token after bitcoin (BTC). Indeed, as the second-largest cryptocurrency by market cap, comparisons between Ether and BTC are only natural.

Ether and bitcoin are similar in many ways: each is a digital currency traded via online exchanges and stored in various types of cryptocurrency wallets. Both of these tokens are decentralized, meaning that they are not issued or regulated by a central bank or other authority. Both make use of the distributed ledger technology known as blockchain. 

KEY TAKEAWAYs

• Bitcoin signaled the emergence of a radically new form of digital money that operates outside the control of any government or corporation.
• With time, people began to realize that one of the underlying innovations of bitcoin, the blockchain, could be utilized for other purposes. 
• Ethereum proposed to utilize blockchain technology not only for maintaining a decentralized payment network but also for storing computer code which can be used to power tamper-proof decentralized financial contracts and applications.
• Ethereum applications and contracts are powered by ether, the Ethereum network’s currency.
• Ether was intended to complement rather than compete with bitcoin, but it has nonetheless emerged as a competitor on cryptocurrency exchanges.

Dogecoin

 Dogecoin is a cryptocurrency with a fun and friendly brand picture that aims to be a supportive introduction to cryptocurrency. Billy Markus, an Oregon programmer, came up with the concept for a kind of "joke" cryptocurrency. He reasoned that a more lighthearted coin, rather than Bitcoin, would have a greater chance of gaining mainstream acceptance. Although Dogecoin is nowhere near the scale of Bitcoin, the 'joke' currency's market cap has risen from more than $1 billion in early January to $47 billion on Saturday, according to CoinMarketCap

What Is Dogecoin?

Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency. It is considered an altcoin and an almost sarcastic meme coin. Launched in Dec. 2013, Dogecoin has the image of a Shiba Inu dog as its logo.

While it was created seemingly as a joke, Dogecoin's blockchain still has merit. Its underlying technology is derived from Litecoin. Notable features of Dogecoin, which uses a scrypt algorithm, are its low price and unlimited supply..

KEY TAKEAWAYS

Dogecoin is an open-source cryptocurrency started in 2013 by Jackson Palmer and Billy Markus.

Dogecoin initially started as a joke based on a popular meme featuring a Shiba Inu (a Japanese breed of dog).

It is based on Litecoin and has the same technology behind its proof-of-work.

Dogecoin has a loyal community of supporters who trade it and use it as a tipping currency for social media content.