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ivankuzmindogecoin
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ivankuzmindogecoin
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Dogecoin is an open-source cryptocurrency established in 2013. The main feature of this coin, that makes it outstanding among others, is the the Shiba Inu dog presented as the logo.
Now let's analyse the degree of decentralization in Dogecoin project.
GitHub metrics:
1. Contributor commit activity - this metrics represent the activity and involvment of developers in the project, also could be used to see whether the project is interesting for the crypto-world.
The number of contributors = 272
Amount of commits by the top 1 user = 1460
Amount of commits by the top 10 users = 4881
The majority of contributions were done untill jan-feb 2017.
2. Number of pull requests - the number of pull requests shows us how external users and community are involved in proposing of changes or improvements to the Dogecoin code in Github.
For instance, it could be a suggestion on how to fix some bug in the existing code.
Number of pull requests - 1757 pull requests, majority of them are already closed, 64 of them are open.
3. Number of issues - the number of issues reflects engagement of users in using the coin.
Number of opened issues = 147; the latest in July 2023.
Operational metrics:
1. Allocation/distribution of assets at the initial launch - This metric shows us how the coin was allocated during the initial launch, this allows to evaluate the fairness of distribution and how well the coin is decentralized.
Dogecoin's initial distribution was based on mining, without pre-mine or initial coin offering, as that could potentially concentrate assets in the hands of some amount of people.
The first known price of dogecoin was established in January 2014, $0,001540753 per coin.
In July 2023 the price is $0.06545083 per coin
2. Profit mechanism - This metric shows how profits, money streams and other types of motivation are distributed among people who potentially should sustain decentralization.
Dogecoin uses a proof of work consensus mechanism, in which miners use computers to solve complex mathematical equations in order to process transactions and record them on the blockchain.
In exchange for supporting the blockchain, miners earn additional Dogecoin, which they can then hold or sell on the open market, thus gain profit for the work.
Blockchain metrics:
1. cost of 51% attack - A 51% attack is a situation on a blockchain where some individuals or a group of people gain control of more than 50% (51%) of the network's mining power or computational power.
Thus these people will be able to do some unfounded fraudulent transactions. The cost of the attack is the amount of money needed to carry out the attack itself.
Cost of 1h Attack on Dogecoin = $40,908
2. Hashrate Distribution - Hashrate distribution reflects the distribution of mining power across different miners or mining pools in the network. In a decentralized network there should be a diverse and distributed hashrate,
so that there is no dominance of some single person or a group of miners among others.
Dogecoin Hashrate Distribution: 1st pool - 15,7%; 2nd pool - 15,1%; 3rd pool - 11%; 4th pool - 5,1%; other pools and individual minors (each of them less than 5%) - 53,1%.
Supply metric:
This metric shows information about the coin and it's potential future distribution.
Max Supply: Not limited
Current Supply: 140,085,536,384
This metrics show us that the Dogecoin can be considered an inflationary coin, because there's a ceiling on the number of coins that will be created. Other cryptocurrencies where the maximum amount of coins that will be created is limited are called deflationary.
Modern day distribution:
Top Dogecoin Distribution allows us to see how much of current supply of the coin is holded by top 10 (for example) holders of the coin.
Top 10 holders - 47.11% of all Dogecoin
Top 1 holder - 23.50% of all Dogecoin
In comparison with Bitcoin, top 10 holders of Bitcoin hold 5.35% of all supply and top 1 holder holds 1.18% of all supply.
Legal Independence:
This metric shows us the potential resistance to external control or manipulation.
Legal Independence of Dogecoin - it is a decentralized and open-source project, that operates independently of specific legal or regulatory entities.
Its decentralized nature makes it less vulnerable to centralized regulations.
Despite the fact that Dogecoin was assosiated with a huge amount of jokes and memes in the internet communities, it demonstrates the power of decentralization.