264 Interactions, 2 today
Elon Musk, the CEO of Tesla, has become a household figure in the cryptocurrency world in recent months. In fact, every other week, he manages to elicit crypto-banter on Twitter. In one of his most recent tweets, the executive openly ‘trolled‘ the main cryptocurrency with Linkin Park music, as he has done with Dogecoin in the past. According to others, his act put a halt to Bitcoin’s recovering phase.
The Tesla exec, not very long back, christened himself ‘Dogefather.’ Since then, however, he has been working towards instilling a legitimate ‘use case’ for the meme-coin. Nevertheless, the coin’s ecosystem has been devoid of any recent developments.
Underlining the technical hurdles that prevent DOGE from becoming one of the primary cryptos of the world, Ethereum’s Vitalik Buterin, in a recent podcast, said,
“The challenge is basically the limits to scalability and the tradeoffs with centralisation. If you just increase the parameters without doing anything else, the it just becomes more and more difficult for people to validate the chain and it’s more likely that the chain becomes centralized and vulnerable to all kinds of capture.”
According to Buterin, there is a lot of room for development in Dogecoin’s network. Nevertheless, Musk had previously asserted that the Ethereum exec apparently “feared the Doge.” Reverting back to Musk’s assertion, Buterin suggested,
“I definitely do not fear the DOGE. I love the DOGE. I definitely don’t think Ethereum is opposed to dog coins.”
Buterin went on to say that Dogecoin’s network may adapt to roll-up technology and end up with thousands of transactions per second on its own native chain. The Ethereum co-founder said, pointing to another feasible alternative that he appeared to be rather interested in,
“If we have a secure Doge to Ethereum bridge then that would be amazing and when Ethereum gets its scalability, you would be able to trade with Doge at extremely low transaction fees and very high speed as well… that would be amazing!”
However, there is currently no solid precedent for constructing bridges between the two separate cryptocurrencies. Nonetheless, there have been various cross-chain exchanges in the past, and merge mining, to some extent, may be likened to the same.
Interestingly, seven years ago on the Dogecoin Subreddit, Litecoin founder Charlie Lee had proposed merged mining of Litecoin and Dogecoin. Dogecoin adopted the merged mining model in August 2014 and within one month, Dogecoin’s hashrate/mining difficulty increased by 1500% as large mining pools widened their operations.
However, Buterin argues that the same is no longer a good option because Dogecoin is larger than Litecoin. The meme-coin was trading at $0.35 at press time, firmly occupying the sixth spot on CMC’s rankings. Litecoin, which has a market worth of more than $11.6 billion, was ranked 14th and was trading at $172.95.
The Ethereum co-founder closed by forecasting where he believes the market’s cryptocurrencies would finish up.
“Bitcoin number one, Dogecoin, c’mon, deserves to be number three… or number two and Ethereum can be whatever that other number is.”