Dogecoin is a cryptocurrency based on the popular "Doge" Internet meme and features a Shiba Inu on its logo. Dogecoin is a Litecoin fork. Introduced as a "joke currency" on 6 December 2013, Dogecoin quickly developed its own online community and reached a capitalization of US$60 million in January 2014. Compared with other cryptocurrencies, Dogecoin had a fast initial coin production schedule: 100 billion coins were in circulation by mid-2015, with an additional 5.256 billion coins every year thereafter. As of 30 June 2015, the 100 billionth Dogecoin had been mined.
Litecoin is a peer-to-peer cryptocurrency created by Charlie Lee. It was created based on the Bitcoin protocol but differs in terms of the hashing algorithm used. Litecoin uses the memory intensive Scrypt proof of work mining algorithm. Scrypt allows consumer-grade hardware such as GPU to mine those coins.
Binance made the clarification after questions were raised on Twitter about the inner workings of the participation product dedicated to proof-of-work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. currencies.
- Binance made a clarification on its participation program
- He said that Dogecoin and Litecoin will not lend themselves to generating additional return
- This is because they are both PoW tokens and not PoS tokens.
El exchange Binance clarified that coins deposited in its recently launched participation program for token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. Dogecoin (DOGE) y Litecoin (LTC) (PoW) would remain in the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. and will not lend themselves to generating additional return.
In an email sent to the media outlet CoinDesk, the exchange spokesman said today:
“There is no on-chain transactions that are recorded on the blockchain itself and shared with all of the participants are done on-chain. staking participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards. of LTC and DOGE for network a network refers to all nodes in the operation of a blockchain at any given moment in time. validation, as these are tokens with no proof of participation. Users’ funds remain at Binance and we have very strict risk management controls in place to ensure their security.”
Criticism on Twitter
The explanation comes after several prominent social media influencers and investors disapproved of the program after it went live on Tuesday, questioning how it’s possible to staking coins like DOGE y LTC, as their main blockchains use a consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. of proof of work (PoW).
“Oh boy. @Binance announced another “holding” program. This one is known as “Locked Staking” and allows you to “stake” LTC and Dogecoin. How is that possible when #LTC and #Dogecoin are PoW cryptos?” , Mishaboar tweeted a popular identifier for Twitter focused on Dogecoin.
Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. Dogecoin, Litecoin y Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. (BTC) use the proof-of-work mechanism(PoW) which consumes a lot of energy, and miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. solve a computational problem to verify transactions instead of proof of participation, which requires market an area or arena, online or offline, in which commercial dealings are conducted. participants or validators to do staking or hold a minimum amount of coins to validate transactions in exchange for rewards.
Therefore, DOGE, LTC and BTC holders do not have the option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. of staking their coins on a network individually or through an exchange for rewards. Only native PoS blockchain tokens can be staked, such as Polkadot, Cardano y Avalanche to obtain rewards, which represents passive income. ( Ethereum a decentralized open-source blockchain with smart contracts functionality. which was originally designed as a PoW blockchain, is in the process of transitioning to a PoS blockchain).
Binance has updated the questions page frequent on its website, explaining the process of blocked participation for so-called coins without proof of participation.
The locked participation program is scheduled to last for 120 days, which means that users who subscribed will have this position for around 4 months. While the early redemption option is available, users looking for the same will have to forgo the rewards. The subscription window for this campaign will end on July 26th.
The program is said to offer up to a 10% annualized percentage return on deposits with rewards paid daily. Some in the investment community are concerned that the double-digit return may be too good to be true and that the exchange may use the coins locked elsewhere to generate additional revenue, exposing users’ funds to potential risks.
The creator ofDogecoin, Billy Markus (que firma como Shibetoshi Nakamoto en Twitter), he expressed with sarcasm his dissatisfaction when rating the product. He said:
My goodness, I can’t wait for 20% returns through totally sustainable magic!
The aversion to high-yield products is understandable when you consider the collapse of Earth and n May, Coindesk says, and recent liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. problems at several lending and loan firms and exchanges. For example, the Anchor Protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. of Earth offered a 20% yield on UST stable currency currency is a medium of exchange that defines value. deposits earlier this year.
In response to these concerns, the spokesman for Binance Dijo: “We do not gamble or lend LTC and DOGE from users and the APR rewards for this campaign come directly from us.”
According to data from CryptoMarkets, Dogecoin traded at 7:30 am today (New York time) a price of USD $0.07, up 3.56% from yesterday at the same time. The meme-centric cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. has fallen 59.82% in a year.
Yesterday, the developers behind Dogecoin launched your Core 1.14.6 update The new software, introducing essential security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. updates and changes to network efficiency.
“Dogecoin Core 1.14.6 is now available, live and updated! With a good amount of improvements under the hood and some nice new features in the UI. Get it here – https://github.com/dogecoin/dogecoin/releases/tag/v1.14.6 This is definitely a recommended update for everyone!”.
#Dogecoin Core 1.14.6 is now released, live and current! With a good number of improvements under the hood and some nice new features in the UI. Get it here — https://t.co/OWZQOhMu6H this is definitely a recommended update for everyone!
— Dogecoin Developers (@dogecoin_devs) July 21, 2022
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