According to some crypto analysts and investors, dogecoin (DOGE) is nothing more than a joke, but for others does the meme crypto have certain properties that can ensure that the cryptocurrency can be used on a large scale. One such person is the CEO of the popular American trading platform Robinhood, Vladimir Tenev. According to him, dogecoin has the potential to become the de facto ‘currency of the internet’.
Dogecoin adoption
On Twitter Tenev set out yesterday how he believes dogecoin can be transformed into a currency that any internet user can use to make everyday payments. Tenev states that dogecoin is ideally suited to make transactions.
Can #Doge really become the future currency of the internet and the people? Now that we’ve added the ability to send/receive DOGE on Robinhood, I’ve been thinking about what that would require.”
First of all, the transaction costs on the Dogecoin network are very low. A single transaction costs only about $0.003. For comparison, transaction costs on, for example, the Bitcoin (BTC) of Ethereum (ETH) network many times larger. So big, in fact, that making payments with these cryptocurrencies is not profitable in many cases. Dogecoin’s transaction fees are also significantly lower than major payment service providers such as Mastercard and Visa.
Dogecoin vs. Visa
Tenev does indicate that the block size and the block time of the Dogecoin network must be greatly improved before the cryptocurrency can be used on a large scale as a means of payment. At the moment the Dogecoin network uses a block size of 1 MB and a block time of 1 minute. In normal Dutch this means that the Dogecoin network can process about 40 transactions per second.
Ideally, the block time (time between successive blocks being added to the chain and to verify a transaction) should be fast enough that the transaction can be recorded in the next block in less time than it takes to pay at a point of sale terminal.
– VLAD (@vladtenev) April 14, 2022
To achieve the same capacity as the Visa network, the Dogecoin network would have to improve their transaction capacity by a factor of 1,625. While this may seem like a daunting task, Tenev states that it should be fairly easy to do. On Twitter, he therefore also calls on the developers of dogecoin to focus on this as soon as possible.
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