October 05, 2022
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