Meme coins have surged as important additions to the crypto landscape, making this space feel a little bit less intimidating. Because meme coins are inspired by jokes or memes circulating on the internet, they also add a funny appeal that makes people more interested in investing in crypto. Meme coins are often seen as an exciting and unique phenomenon that has made waves in the crypto world. The history of meme coins started in 2013 when Dogecoin (DOGE) was created. Even though developers thought more about this project as a joke, they didn’t expect it to grow that much in popularity. But, things were different for Dogecoin, which benefited from an upward trajectory. Moreover, the future of this meme coin looks positive as well, as the DOGE price prediction could make more individuals interested in investing in it.
Thanks to meme coins, the crypto space has become a little bit less confusing, because they add a funny appeal. However, despite this difference, meme coins are also created using blockchain technology. This article will explore more about the technology underpinning meme coins.
What makes meme coins unique?
Meme coins are seen as a powerful technology in the crypto world because they weren’t created with the same principles as the other cryptocurrencies but with different purposes. For example, meme coins have been inspired by popular memes circulating on the internet or by jokes. Additionally, something else that makes meme coins special is that they are driven by community sentiment, which makes them popular and attracts more investors.
This can be seen from the example of Dogecoin, which was created as a joke but grew into something much bigger. In time, it became a powerful asset in the crypto landscape, with a dedicated community that helped this digital coin gain traction.
But particularly because there is strong community support, this can bring even more volatility into the landscape, as the meme coins could experience extreme price fluctuations based on social media trends, market sentiment, or the entire community hype. This means that the value of meme coins depends a lot on factors like social media buzz or any celebrity endorsement, which attracts a lot of risks in this space.
Blockchain technology: The technology underpinning cryptocurrencies
Cryptocurrencies work thanks to blockchain technology, which also occurs in the case of meme coins. Although meme coins could seem to have only a humor factor associated at first, things are not like this, as meme coins still function with blockchain. So, blockchain is the one that provides a secure and decentralized infrastructure so that meme coins can exist. Additionally, on top of this, blockchains ensure the transparency and integrity of all transactions.
So, even though meme coins have a funny element associated with them, they still function thanks to consensus mechanisms, which add new blocks and validate transactions. Meme coins work thanks to various consensus mechanisms. For example, some meme coins use a Proof-of-Work (PoW) consensus mechanism, where miners ensure the network’s security and add new blocks. They do this by solving challenging mathematical problems, and the first to solve this task is the one who will add new blocks and receive rewards in the form of meme coins. Other meme coins project function with a Proof-of-Stake (PoS) consensus mechanism. In this case, validators can create new blocks by staking an amount of their meme coins and keeping them as collateral. In recent times, this alternative has become a preferred option over PoW, as the second one is associated with high energy consumption.
The Delegated Proof-of-Stake (DPoS) or the Proof-of-Authority (PoA) are other mechanisms that the blockchain of meme coins use, where they are used to validate transactions and secure the network. Additionally, meme coins also offer all the other blockchain innovations, such as smart contracts. Smart contracts are a type of contract with the terms of the agreement already written into code, and because of this, they eliminate costs and the need for intermediaries.
Blockchain is the technology that meme coins need to function properly, as it allows these types of cryptocurrencies to operate transparently, efficiently, and securely. With the help of blockchain, meme coins have everything they need to thrive and stay updated in the dynamic space of cryptocurrencies.
What were the first steps that meme coins took in the world?
Meme coins’ history started in 2013 with the creation of Dogecoin. Even more, the creators of this digital coin viewed it more as a joke, things have changed hugely over the years, and Dogecoin has cemented its important position in the crypto landscape. Dogecoin has attracted a lot of support from its community because it has a funny appeal and is different from the other altcoins, which are viewed more as complex and challenging notions. This is why Dogecoin benefits from one of the most loyal fanbases in the crypto landscape. And the success of Dogecoin opened the door for other meme coins to emerge on the market and compete with Dogecoin.
Another essential addition to the meme coin sphere is Shiba Inu, which has great community engagement and has become a significant player.
Last remarks
Even though meme coins seem more lightweight than the other alternatives in the crypto landscape, they still function with the help of blockchain technology. Blockchain is a decentralized digital ledger that has brought plenty of advantages into the world, as it offers people a more decentralized solution, and because of this, it removed the need for intermediaries. Cryptocurrencies were first developed to become a solution to fiat money, but over the years, they have evolved hugely, making people create meme coins to add a humorous part to the crypto landscape.
