Vitalik Buterin he did more recently to the improvements suggested by Elon Musk for Dogecoin, which are expected to make this cryptocurrency-meme into the market leader. He spoke about the potential future interoperability between Dogecoin and Ethereum. The creator of the latter spoke about the future of Dogecoin in a new episode of “The Lex Fridman Podcast”.
Dogecoin is a competition to Bitcoin?
Let’s start with the fact that Musk has been promoting Dogecoin for a long time. He even joked on Twitter that he would like to be the CEO of the development team behind this cryptocurrency-meme. In addition, he called DOGE “the people’s currency”, which was probably supposed to show the contrast between the “dog” cryptocurrency and Bitcoin (BTC), in which large players from Wall Street invest today.
Lex Fridman, host of the podcast guest of Buterin, kicked off the interview segment we were interested in by reminding everyone that in mid-May Musk said Dogecoin would have beaten Bitcoin “hands in pocket”. However, it was conditioned on the fact that the DOGE developers would have to make some improvements. What are the corrections? Three solutions, to be precise. First of all, DOGE should have 10 times faster block digging time in its network. Besides, the block size itself should be increased 10 times. The work was to be supplemented by as much as 100 times lower transaction fees.
“Ideally, Doge speeds up the block generation time by 10 times, increases the block size by 10 times, and lowers its fee 100 times. [transakcyjną]. Then he wins [z BTC]” – wrote Musk on Twitter.
Buterin disagrees with Musk’s ideas
This is not the end of this story. A few days later, Buterin posted an entry on his blog in which he questioned the ideas of the Tesla CEO. Especially when it comes to blockchain scalability. He stated that they could lead to “Extreme centralization” and “Violations of the fundamental properties that make blockchain what it is.”
Musk’s answer was quite infantile. Tesla’s CEO suggested that the creator of Ethereum “is afraid “ DOGE competition.
Fridman pulled on the topic. He wanted to know what aretechnological obstacles “ for Dogecoin that “prevent it from becoming one of the world’s major cryptocurrencies “. He also asked if Buterin was actually afraid of Dogecoin, as Musk claims.
– I’m definitely not afraid of the doggie! I love doggie. I visited a doggie in Japan a few years ago. He is an amazing dog that is still alive Vitalik replied playfully.
He meant, of course, a dog that inspired the creation of a popular meme, which later became the foundation of the DOGE cryptocurrency. Let us remind you that the first photos of the “dog” appeared in 2010 on the blog of the Japanese kindergarten teacher Atsuko Sato and presented her dog Kabosu. It was also this furry that Buterin visited in Japan.
Only then did Vitalik move to the correct answer.
– I love Doge too[coina]. I bought some Doge[coinów]. I still have some these coins – added.
As for the technology issue, according to Vitalik, the matter is complicated and concerns mainly centralization.
– In terms of scalability, the challenge is essentially like the scalability constraints and the trade-offs with centralization … If you just increase the parameters without doing anything else, then it becomes more difficult to validate the chain and it just becomes more likely that the chain will become centralized and vulnerable to all kinds of problems. types of attacks – He said. – Personally, I think if Doge wants to somehow connect to Ethereum and as a result people can exchange Dogecoins thousands of times per second, that would be amazing. If they just want to take advantage of Rollup-style technology and just have thousands of trades per second on their own chain, that would also be a great effect – added.
He further added that “if we could have the Doge Bridge to Ethereum it would be amazing. “ In his opinion, it remains only to wait until “Ethereum will get its [docelową] scalability ”.
And when Fridman asked Buterin how difficult it would be to build a secure bridge between the two blockchains – DOGE and ETH – Buterin replied that we are talking about a technology that is just emerging.
– It’s definitely something that’s in its infancy. There were a few things about the interactions between the chains that were done before. The earliest is probably the concept of merge mining, which implies that a chain simply makes its entire proof of work algorithm dependent on another chain’s proof of work algorithm. He replied.
Then he continued the topic.
– When it comes to something like bridges, when one string reads another string, there was a project called BTC Relay early in Ethereum’s history. This is an Ethereum-based smart contract that simply verifies Bitcoin blocks. I think people stopped worrying about maintaining it because there were simply not enough apps that were genuinely interested in using it at that time, and the transaction fees became too high to actually maintain it – he explained.
It turns out, however, that the project may be reactivated in a way.
– So I think if we want to make a BTC Relay 2.0 that is cheaper because it will use snarks or something like that, it could probably work. Maybe now is the time when you can really do this kind of verification … But there’s one challenge: if you want a bridge that lets you move resources between chains, you don’t just need one-way verification – you need two-way verification. He continued. – Ethereum can verify anything because Ethereum smart contracts can just run arbitrary code – added.
He further explained that a fork might be necessary.
– If Doge wants to create his fork that allows two-way transfers [środków] with Ethereum, they could do that and I think it would be a wonderful collaboration – he noticed.
Today, however, Buterin is focused on creating Ethereum 2.0, the new version of the Ethereum network. It is supposed to improve the scalability of the chain and eliminate other problems of the project.
Ethereum can only handle around 15 transactions per second. For comparison, a network as large as Visa processes about 1500. Plus mining – that is, the verification of these transactions – is very energy-consuming (similar to Bitcoin). This is a general disadvantage of type blockchains proof-of-workthat require the digging process to be energy-intensive for safety reasons. The idea is that the cost of the attack is 51 percent. per network was so high that it would not pay off in practice.
Ethereum 2.0. it is intended to be designed to maintain scalability, but without sacrificing performance, security or decentralization (which is not so obvious anymore). How? It is about new features that will be introduced.
In practice, this means switching to proof-of-stake, an alternative algorithm for mining coins. In addition, the so-called shard chains. These are parallel blockchains that reside in Ethereum and take over some of the network processing work. As the creators colorfully describe it, they replace Ethereum “Into a super highway of interconnected blockchains.”
You can read more about it here on our website.