Shiba Inu and Dogecoin, if both of these dog-themed cryptocurrencies are creating confusion in your mind, you are forgivable. The value or price of these two coins is just a dollar and heck. They play the same dog amulet, Shiba Inu, which is a Japanese breed. If you want to know more about crypto, read Some Essential Benefits Of Bitcoin Trading and more trading reviews.
In What Ways Both The Coins Are Similar?
These digital currencies are developed utilizing a virtual database known as Blockchain. This technology is similar to a chronological database of every person-to-person transmission of the currency. Generally, a large computer network; mints, traces, and handles cryptocurrencies. So, consider blockchain technology as a walking receipt that enables the computer network to validate each transaction that processes on it.
The computer network continually validates this receipt and assists to avoid frauds and scams and makes it certain that the currency is transferred and accounted for correctly. Now, thousands of cryptocurrencies are in circulation, and all of them somehow depend on blockchain technology for their operations. Two of the most popular cryptocurrencies, such as Bitcoin – tradable via Bitcoin Trading Software, and Ethereum, also use blockchain technology along with the Dogecoin and Shiba Inu Coin.
Dogecoin & Shiba Inu Coin
Dogecoin is the first-ever Dog Coin that came into being as a result of an internet joke and a viral meme, but eventually, the crypto developers turned it into a crypto asset. The logo of the coin bears the symbol of Shiba Inu. As the self-mining of Dogecoin was not beneficial, in 2013, Dogecoin used the Merged Mining technology for forking Dogecoin from Litecoin, which indicates that Litecoin and Dogecoin are simultaneously mined without any extra cost. The development of Dogecoin is being linked to the Dogecoin Foundation – a US-based philanthropic enterprise founded in 2014.
Shiba Inu, also known as the Dogecoin Killer, is a cryptocurrency minted to be the arch-rival of Dogecoin. An anonymous identity known as Rayoshi developed SHIB in 2020. It was formed as an experiment in decentralized governance. 50% of the maximum supply of SHIB, which is one quadrillion, was set up at the Ether at UNISWAP. This liquidity pool was locked, and the remaining 50% were transferred to the founder of Ethereum, who put 90% of the received coins into crypto burning and used the remaining 10% for charitable purposes around the world. Now, 10 fictitious developers are minting the Shiba Inu coin as a community effort. The decentralized exchange of the SHIB, Shibaswap, launched two tokens, including a governance token BONE and a utility token LEASH.
- It is the first-ever of its type. Dogecoin has laid the foundation for a segment in the crypto world.
- Dogecoin contains a devoted community that utilizes it as a tipping coin for trading and making payments for social media content.
- It is an Altcoin much similar to Litecoin and uses the same Proof-Of-Work consensus mechanism.
- Shiba Inu aims to review the work of an autonomous organization in the absence of any central leadership.
- It was developed to directly challenge Dogecoin and is called Doge Killer.
- Shiba Inu is built on the Ethereum blockchain and uses the Proof-Of-Stake consensus mechanism.
Speed Of Transactions
Dogecoin performs well in terms of transaction speed as compared to its contemporaries. The reason behind this speed is the usage of similar POW technology as Litecoin. The differential point between Dogecoin and other crypto initiatives is that it depends on the encrypted algorithm, unlike Bitcoin’s SHA256. The script is very rapid and causes a faster block creation rate, which enhances the scalability of Dogecoin. Dogecoin takes about one minute to create a new block which is much quicker than 10 minutes of Bitcoin and 2.5 minutes of Litecoin to develop the same block.
Shiba Inu, on the other hand, is built on the Ethereum blockchain. Therefore, its block creation time and the transaction rate reflect its underlying network. The native currency of Shiba Inu (SHIB), an ERC-20 token, utilizes the POS consensus mechanism that provides it with the same transaction rate as its parent network. Since the Ethereum network has shifted to the POS mechanism from the POW mechanism, Shiba Inu has earned a competitive advantage over Dogecoin. The POS algorithm can process transactions within seconds, which is way faster than the POW speed.