Crypto

Shiba Inu Tokens vs. Dogecoin: What’s the difference?

shiba inu tokens vs dogecoins

If you have been on the internet during the past 14 months, there is a high chance that you may have heard of Dogecoin ($DOGE) and Shiba Inu tokens ($SHIB). Both crypto assets have more than 400,000 followers on Reddit, and have been developing large meme communities and cultures across the internet. Since their humble beginnings, both crypto assets have experienced gains of over 100,000% from their all-time lows (which is an indicator of volatility) as of the date of this article.

Both crypto assets use a dog as their mascot, specifically the Shiba Inu dog. Both crypto assets have been promoted by Elon Musk’s tweets. As such, overall Shiba Inu tokens and Dogecoin share a lot of similarities in the meme world, but what makes them fundamentally different?

This article will explore the fundamental differences between Shiba Inu tokens and Dogecoin.

How are Shiba Inu tokens and dogeCOINS different? Here’s the difference between crypto coins vs tokens. 

Dogecoins: a Fork of Litecoin

Dogecoin was founded before Shiba Inu by two software engineers who wanted to create a “fun” version of Bitcoin and decided to fork the Litecoin code in order to make their own coin: Dogecoin.

It was somewhat created as a joke by the two software engineers, who claim that they never expected Dogecoin to become such a phenomenon. One of the creators sold all of his DOGE holdings in order to buy a Honda Civic; at some point, the market cap of DOGE was bigger than the entire Honda company itself

Dogecoin is similar to Bitcoin in that it uses the Proof of Work (PoW) mechanism in order to validate transactions. However, instead of having a fixed supply of DOGE that can be minted like Litecoin and Bitcoin, DOGE has an unlimited supply.

Of course, although DOGE technically has an unlimited supply, mining new Dogecoin still requires some computer processing power in order to be created. No one has the power to mint a lot of DOGE in one fell swoop. Just like fiat dollars technically have an unlimited supply, so does DOGE. 

The main takeaway about dogecoins is that it is its own native blockchain and is claimed to have started out as a “joke” between two software developers. The DOGE army, as the fans call the DOGE community, tends to be forever bullish on DOGE, claiming that it could very well reach $1 per coin someday. The Dogecoin subreddit has over 2 million subscribers as of the date of this article demonstrating the popularity of the asset that started out as a meme coin. 

Shiba Inu tokens: a Token Minted on the ETH Blockchain

 

Shiba Inu token

Shiba Inu was created anonymously by someone (or a group of developers) named “Ryoshi”. During its humble beginnings, Shiba Inu marketed itself as the “DOGECOIN KILLER,”  before eventually becoming the home of a larger ecosystem. 

Shiba Inu has a supply of one quadrillion tokens, with half of the supply locked in a Uniswap liquidity pool and the other half of the supply donated directly to the founder of Ethereum, Vitalik Buterin. Vitalik Buterin himself decided to sell his stake of Shiba Inu for $1 billion and donate it all to India’s covid relief fund, marking the largest crypto donation in history. After the spectacular donation, Vitalik Buterin decided to “burn” the remainder of his Shiba Inu tokens by sending them to a dead wallet.

Shiba Inu is an ERC-20 token minted on the Ethereum Blockchain, which means that it relies on Ethereum to approve and validate its transactions.

Stay Curious: Could Bitcoin ever lose its unofficial status as the king of crypto?

Many people see Shiba Inu achieving legendary status because it was a simple meme coin at the beginning, with daily volumes of barely $500 until the meme coin eventually caught on and was added to more and more centralized exchanges around the world. Today, Shiba Inu has a transaction volume of over $600 million, demonstrating that this coin grew from absolutely nothing.

The main takeaway about SHIB is that it is not its own native blockchain and does not require mining power in order to have transactions validated. It is an ERC-20 token minted on the Ethereum blockchain, and thanks to recent profits from the founding team Shiba Inu has been able to grow its ecosystem, like having its own decentralized exchange ShibaSwap.

The Bottom Line

Both SHIB and DOGE have started from humble beginnings as simple meme tokens. However, over time they have both managed to build a significant following, and seen their initial coin price increase significantly in value. DOGE is older than SHIB, and can be seen by some as the “original ” memecoin. However, SHIB’s success shows that other memecoins can also succeed. 

Overall, SHIB and DOGE have different architectures. SHIB has a fixed supply of 1 quadrillion, and DOGE has a technically unlimited supply. However, both crypto assets have built a significant following and experienced a dramatic increase in price from their all-time lows. 

Nobody knows if SHIB or DOGE will remain relevant in the next five years, but what we do know is that both SHIB and DOGE have helped crypto adoption by being one of the most popular crypto assets on Twitter. 

All third-party links and any related material are not the opinions of Front, nor does Front purport to have ownership over any such material or information presented therein. The preceding article does not constitute a recommendation to buy, sell, hold, or pursue any specific investment. 

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