The 12 Features of Dogecoin (DOGE) – The crypto dog has the support of a billionaire on Twitter, but this time it’s not aboutElon Musk. Dogecoin has the potential to become the currency of the internet if it manages to overcome a few technical challenges according to the CEO of the application Robinhood.
Dogecoin, internet currency: a history of fees, blocking time
Robinhood CEO Vladimir Tenev tried to clarify in twelve of his tweet of 14 April 2022, the conditions that Dogecoin must meet in order to become ” the future currency of the internet and humans “.
The first condition concerns the Dogecoin transaction fees, which according to Vladimir Tenev must ” be extremely low “. He estimates that” we are already there Cryptocurrency transaction fees will actually increase about $ 0.003 since the 1.14.5 update last November.
The second condition concerns the blocking time, which must be ” Fast enough “. This time corresponds to the duration between adding successive blocks to the chain and verifying a transaction “.
This blocking time should allow a transaction to ” be checked into the next block in less time than it takes to pay at a POS terminal “. It currently stands at 1 minute and should be reduced to” ten seconds This time would then in this case be less than the duration of performing a payment card transaction.
However, this optimization of the blocking time should not reach a speed that is likely to cause, according to Vladimir Tenev, waste of energy of minors:
“But it should not go so fast that miners start building too many competing chains and wasting too much energy on creating consensus.”
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The dog must make some technical concessions to become a currency
The third condition concerns block size and network processing capacity. The latter is currently at approx 40 transactions per second (tps), against a theoretical capacity of 65,000 tps for Visa. The size of a block on the DOGE network is 1 MB.
The President of Robinhood proposes to adopt ” a block size limit of 1 GB (and later 10 GB) to increase network processing capacity. The dogecoin would thus have ” all the flow a global currency needs in the foreseeable future According to Vladimir Tenev, second tier solutions (tier 2) are not necessary to solve this capacity problem.
The doge community criticizes block size and inflation
Vladimir Tenev also foresaw criticism from some cryptophiles against a significant increase in this block size. These criticisms would relate to the impossibility after such a measure, to run a complete node on a Raspberry Pi at home. Vladimir Tenev admits that ” processing 10 GB blocks per minute will require more sophisticated hardware “. However, he believes that” it is in fact a reasonable compromise “.
Robinhood CEO ended his series of tweets by addressing criticism of Dogecoin’s inflationary nature. The supply of the latter is “infinite” as opposed to Bitcoin (BTC) whose total issued will never exceed twenty-one million tokens. However, Vladimir Tenev recalls that the current inflation rate for Dogecoin does not exceed 5%. And given the regular issuance of Dogecoin, this rate would fall “in a few decades”, and ” will be less than 2%. “.
Jack Dorsey looked at Bitcoin, the “best incarnation” of internet currency. Can Dogecoin really achieve this status, knowing that it was originally created as a simple joke to make fun of the multiplication of altcoins, which were only pale copies of Bitcoin?
Dogecoin still has a long way to go to become the currency of the Internet. If you are not seduced by the benefits of such a perspective, sign up at Swissborg to buy safe values like BTC or ETH! Up to € 200 is offered for any deposit of € 50 (linked link)