The next evolution of Dogecoin

0

What was once just a joking paraphrase of one of many meme-worthy lines inspired by a 2015 excerpt by Shia LaBeouf can now be read as an assessment of the sheer potential of NFTs: “Don’t let your memes be dreams” – and we saw it come to fruition when a Nyan Cat-based NFT sold for $600,000.

And now it’s happening again as Dogecoin continues to grow as a platform for decentralized finance, on-chain gaming and, of course, NFTs. Central to the additional legitimization of the OG meme coin is Dogechain – which was recently announced as a vital Layer 2 network for the meme coin.

OK what is dogecoin?

Dogecoin is a cryptocurrency – like Bitcoin or Ethereum – initially developed as a joke by software engineers Billy Markus and Jackson Palmer. It is also a glimpse into the internet culture of the early 2010s, as Dogecoin was originally launched in December 2013. The name of the coin comes from the now classic doge meme – an image of a surprised-looking Shiba Inu superimposed on the dog’s supposed internal monologue in Comic Sans.

However, despite the piece’s silly presentation and branding, serious work has been done to get the meme piece up and running. The coin was launched when Bitcoin was still one of the few big players in cryptocurrency, Markus and Palmer sought to make the underlying blockchain that powers it more efficient. They succeeded, with the Dogecoin blockchain touting faster block times and transaction speeds than that of Bitcoin.

Now, if you are wondering where you can buy Dogecoin for yourself, the currency is currently available on most cryptocurrency exchanges. At the time of writing, Binance and Coinbase, among other things, provide users with the ability to exchange fiat currencies and cryptocurrencies for Dogecoin. However, if you are looking to do this as an investment, just be sure to prepare for a Elon Musk’s rogue tweet (or statement) down the line. On top of that, cases like Dogecoin 800% increase driven by Reddit in January 2021 add to the potential volatility of the coin as an investment.

A Brief Summary of Layer 2 Networks

When it comes to blockchains, Layer 2 refers to a network built on top of an existing blockchain designed to allow for more efficient operation on a larger scale. In web3 development circles, building a layer 2 network is one of the most often used solutions to counter the difficulties that every blockchain has in handling all the transactions it verifies on a daily basis. Ethereum – the de facto blockchain used to mint NFTs – offers Layer 2 solutions like Polygon.

In addition to solving each blockchain’s scalability issues, by supporting some of a blockchain’s transaction throughput, Layer 2 solutions also enable the development of decentralized applications (dApps) that do not interfere with the basic functionalities of a blockchain. This makes Layer 2 networks popular hosts for all sorts of dApps, ranging from crypto wallets to decentralized finance (DeFi), play-to-earn (P2E) games and, of course, NFTs.

What does Layer 2 mean for Dogecoin

So what does this mean for Dogecoin? Thanks to its new Dogechain layer 2 network, all sorts of utilities are now open to Dogecoin holders. It could also boast of improved efficiency over Dogecoin, thanks to its proof-of-stake authentication mechanisms. According his website“[with] Dogechain, Dogecoin holders can do more than just hodl and wait for Dogecoin to land on the moon! Additionally, the Layer 2 network would allow Dogecoin holders to use cryptocurrency as a way to pay gas fees.

However, Dogechain differs from other layer 2 networks in that it does not operate directly on top of the existing Dogecoin blockchain. Instead, Dogechain operates as a bridge between Dogecoin and its custom Polygon-based network. As such, dApps built on Dogechain will not use real Dogecoin, but instead rely on Wrapped Dogecoin – a proprietary token that pegs its value to real Dogecoin.

Notably, Dogechain is far from the first layer 2 network to be established on top of the Dogecoin blockchain. As early as 2014 – a year after Dogecoin’s inception – a Dogecoin layer focused on creativity and social good was launched called Doge’s Day. Comparable to Bitcoin’s CounterParty Layer 2 where early NFTs like Rare Pepes and Spells of Genesis were minted, DogeParty is home to early NFTs on Doge, and it has enabled countless fundraising opportunities for Dogecoin holders, big and small.

A difficult launch of Dogechain

As reported on DecryptDogecoin jumped 11% in value last August. Much of the renewed interest in Dogecoin was born out of the launch of Dogechain. Unfortunately, the initiative turned out to have no direct connection to the original Dogecoin team, according to a tweet co-signed by the official Dogecoin Foundation Twitter account.

Additionally, a independent investigation by Web3 Detective ZachXBT discovered evidence of a massive Dogecoin dump by one of Dogechain’s developers. Ever since news about the launch of Dogechain started circulating in web3 circles, the value of Dogecoin has fallen, hitting a 30-day low, according to CoinGecko. This, however, did not detract from Dogechain’s popularity. In a tweet on September 2, Dogechain’s Twitter account reported that it crossed 15 million transactions.

So where does the original meme project end and this new Web3-ready initiative begin? It’s hard to say. Despite how the original Dogecoin developers walked away from this new project, the promise of all the latest utilities it is supposed to enable Dogecoin hodlers is hard to deny. We’ll have to wait and see how the story of Dogechain unfolds – and if it continues the spirit of the meme play that started it all nearly a decade ago.

Share.

Comments are closed.