How Is The Network Secured?

The network depends on the miners to secure the blockchain and validate the transactions. The PoW rules are then enforced through the full nodes and the miners are operating with the computational power to solve the mathematical equations so by solving one, the new block is generated, the transactions are then verified and recorded so miners get a reward with 10,000 DOGE. However, DOGE did have a few security problems since the launch.

The DOGE wallet called Dogewallet was hacked in 2014. The hackers stole 21 million coins which were worth about $12,000 but then the doge community raised $13,000 to pay back the users who lost their money. Keep in mind that blockchain technology is very safe so its blockchain has never been hacked. However, all of the blockchains including DOGE’s are at risk of a 51% attack.

A 51% attack is when more than half of the blockchain is under the control of one person or a group so if this happened, the group will add invalid transactions to the blockchain and this will be considered fraud and will be bad for any cryptocurrency that became a victim to this attack. When DOGE was launched, it was at a risk of a 51% attack so to stop this from happening, the developers built a merged mining operation with LTC in 2014 and the two currencies can now be mixed together which makes both of these networks secure.

In 2017, a member of the Dogecoin community was arrested for fraud in Britain. Ryan Kennedy was the person that opened a Doge exchange called Moolah using the name Alex Green and then soon he went under bankruptcy and possibly stole the users’ money. The community trusted Kennedy and he lied to them so this was considered the first crypto fraud trial. Soon after, Jackson Palmer left his role at Dogecoin and the rumor was that he actually left because of Kennedy and the Moolah issue.