If you’re a fan of meme coins and tokens, you must have heard of Dogecoin and Shiba Inu. They are the top two meme-based cryptocurrencies, and have become quite popular among crypto enthusiasts.
Meme coins or tokens are cryptocurrencies that were created as joke cryptocurrencies. They are created mainly for fun and as projects that move users away from the high-tech projects such as Bitcoin and Ethereum.
It’s no surprise that these tokens usually carry the images of popular dog breeds like the Shiba Inu, which is what mostly attracts users.
These tokens however have gone beyond being just fun cryptocurrencies with no real world use cases to projects that offer useful uses to their users. In this guide, we compare the two biggest memecoins in the crypto industry.
What is Dogecoin?
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Dogecoin was the first meme coin to be created. As stated earlier, it was created as a fun cryptocurrency with no real use case. The creators, Billy Markus and Jackson Palmer, felt Bitcoin was too complicated and difficult to use for the average person.
The coin however became quickly popular, probably because it identifies with the popular Shiba Inu dog breed. Dogecoin is referred to as a coin, because it has its own dedicated blockchain, which was derived from the original Bitcoin blockchain.
Transactions on the Dogecoin blockchain are permanently registered on a digital ledger. The blockchain uses the same proof-of-work (PoW) consensus algorithm that the Bitcoin network uses.
It therefore requires miners to mine blocks and verify transactions, a process through which new DOGE coins are minted. Dogecoin’s network is however faster, with a block time of one minute compared to Bitcoin’s 10 minutes.
Unlike Bitcoin however, Dogecoin doesn’t have a supply cap, making it an inflationary coin. This makes it a perfect coin for payments, but a bad store of value since it doesn’t have a limited supply like Bitcoin which has only 21 million coins.
Dogecoin now has a number of use cases, including for payment with several top merchants like Tesla, AMC Theaters etc. There’s also the possibility of minting NFTs on the Dogecoin network since one of Dogecoin’s developers has successfully minted the first NFT on the network.
What is Shiba Inu?
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Shiba Inu is the second meme token created, and was launched in 2020 by an anonymous creator (or creators) known only as Ryoshi. It was created as an alternative to Dogecoin, emphasizing community.
The Shiba Inu community has often touted the token as the “Dogecoin killer”, even though it was also created as a joke cryptocurrency. Shiba Inu runs on the Ethereum blockchain, that is it does not have its own blockchain.
Because it is based on Ethereum, users of the meme token can take part in on-chain activities like creating smart contracts and earning staking rewards. It also has its own decentralized exchange (DEX) called ShibaSwap which holders use to generate passive income.
Like Dogecoin, Shiba Inu is developing real world use cases to make it more relevant than just a fun token. An example is the possibility of minting non-fungible tokens (NFTs) on the network.
Differences Between Dogecoin and Shiba Inu
Both Dogecoin and Shiba Inu are meme coins that were initially intended for fun and as joke cryptocurrencies. There are however many fundamental differences between the two.
First, Dogecoin is a coin, since it has its own blockchain while Shiba Inu rubs on Ethereum. This makes it an ERC-20 token, not a coin.
Secondly, Dogecoin uses the PoW consensus algorithm for maintaining the network, while Shiba Inu doesn’t have that. It only functions as a part of the Ethereum network which is a PoS network.
In terms of supply, Dogecoin is an inflationary cryptocurrency with an endless supply of coins. Shiba Inu is almost the same, with a max supply of one Quadrillion tokens, but it does have a capped supply.
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