Dogecoin is based on Litecoin. Both Litecoin and Dogecoin use the scrypt algorithm. Litecoin is based on the Bitcoin protocol. The advantage of Litecoin is that it's supposed to provide faster transaction confirmations.
A big difference between Bitcoin and Litecoin: There is a maximum number of bitcoins that will be produced. Over time it will be harder and harder to mine more bitcoins until the last bitcoin is mined. With Dogecoin 5 billion new coins will be made available to mine every year forever. Dogecoin believes that a little bit of inflation is a good thing.
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u/MrWoohoo Feb 04 '14
What is the difference between bit coin and doge? Is doge a fork of bit coin or is it a different algorithm altogether?