DOGE the crypto of the internet? Robinhood CEO Explains

The 12 moves of Dogecoin (DOGE) – The crypto-doggie 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 story of fees, block time

Robinhood CEO Vladimir Tenev tried to clarify in twelve of his tweet of April 14, 2022, the conditions that Dogecoin must meet to become “ the future currency of the internet and people “.

The first condition concerns the Dogecoin transaction fees which must according to Vladimir Tenev, “ be extremely low “. He estimates that ” we are already there “. Cryptocurrency transaction fees would indeed rise at around $0.003 since the 1.14.5 update last November.

Publication by Vladimir Tenev – Source: Twitter

The second condition relates to the block time which must be “ fast enough “. This time corresponds to the duration between adding successive blocks to the chain and verifying a transaction “.

This block 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 be in this case, less than the duration of carrying out a transaction by debit card.

This optimization of the block time should not however reach a speed likely to cause according to Vladimir Tenev, waste of energy by minors:

“But it shouldn’t be so fast that miners start building too many competing chains and wasting excessive amounts of energy building consensus. »

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The Doge must make some technical concessions to become a currency

The third condition relates to block size and network processing capacity. The latter currently stands at approximately 40 transactions per second (tps), against a theoretical capacity of 65,000 tps for Visa. The size of a block on the DOGE network amounts to 1 MB.

The President of Robinhood proposes to adopt ” a block size limit of 1 GB (and later 10 GB) to increase network processing capabilities. The Dogecoin would thus have “ all the throughput a global currency would need for the foreseeable future “. According to Vladimir Tenev, second layer solutions (layer 2) are not necessary to solve this capacity problem.

Doge community criticizes block size and inflation

Vladimir Tenev also anticipated criticism from some cryptophiles against a significant increase in this block size. These criticisms would relate to the impossibility following such a measure, to run a complete node on a Raspberry Pi at home. Vladimir Tenev admits that the ” processing 10 GB blocks per minute will require more sophisticated hardware “. However, he believes that ” it’s actually a fair compromise “.

The Robinhood CEO ended his series of tweets by addressing criticism of Dogecoin’s inflationary nature. The offer of the latter is “infinite” unlike that of Bitcoin (BTC) whose total issued will never exceed twenty-one million tokens. Vladimir Tenev recalls, however, that the current inflation rate of Dogecoin does not exceed 5%. And given the fixed issuance of Dogecoin, this rate would decrease “in a few decades”, and ” will be less than 2%. “.

Jack Dorsey saw in 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 merits of such a perspective, register on Swissborg to buy safe values ​​like BTC or ETH! Up to €200 offered for any deposit of €50 (affiliate link)

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DOGE the crypto of the internet? Robinhood CEO Explains

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