Dogecoin is currently the second largest proof-of-work cryptocurrency today after Ethereum’s move to the proof-of-stake consensus mechanism.
DOGE, which is a meme of the biggest and largest cryptocurrency, Bitcoin, follows its model to its consensus mechanism. Bitcoin remains the number one user of the proof-of-work [PoW] consensus mechanism which has raised concerns about its effect on climate, especially.
The Ethereum merge was successful and has seen ETH finally move to the sustainable proof-of-stake [PoS] mechanism. It is now likely that Dogecoin will follow the Ethereum network to make the move. Crypto enthusiasts have asked, will that happen, and when will it occur?
In this article, we’ll look at Dogecoin’s consensus mechanism and the possibility of its transition to the PoS consensus mechanism. Before then, let’s learn more about Dogecoin.
What is Dogecoin?
Dogecoin is a meme-based cryptocurrency that was created as a parody of the largest cryptocurrency, Bitcoin. The cryptocurrency has a Shiba Inu dog logo on it.
Dogecoin was forked from Litecoin, another cryptocurrency modeled on Bitcoin in 2013. It was created by Billy Markus and Jackson Palmer.
The coin created out of fun is now one of the largest cryptocurrencies today. As a meme coin, DOGE was popularized by the meme posts and tweets of billionaire, Elon Musk. He has been using the ‘bird app’ which he now owns to talk about the project and has since been tagged the ‘dogefather‘.
As of this writing, DOGE is the tenth largest cryptocurrency today with a market cap of $7.8 billion. It is currently selling at $0.059296 with a 24-hour trading volume of $340,486,727. It is one of the top performers in a bearish market and has a circulating supply of 132,670,764,300 DOGE coins.
Dogecoin is available for purchase on crypto exchanges. It has been an option for crypto investors with many storing their funds in a dogecoin wallet.
What you Need to Know About Dogecoin’s Consensus Mechanism
Dogecoin like bitcoin uses the proof-of-work mechanism where miners solve a mathematical problem to get a reward when a new block is added to the network. Dogecoin’s proof-of-work however differs from that of bitcoin in many ways.
Doge’s PoW makes use of Scrypt technology. Unlike bitcoin, dogecoin has a block time of 1 minute, and the total supply is uncapped. This means that there is no limit to the number of Dogecoin that can be mined. Doge can be mined individually or by joining a mining pool where its reward is shared.
Dogecoin can be mined on computers including the GPU. The energy expended here has been a concern, for this reason, a more sustainable proof-of-stake has been proffered as the solution.
Will Dogecoin Move to the Proof-of-Stake Mechanism?
There have been talks of Ethereum moving from a PoW consensus mechanism to a sustainable PoS mechanism. About a couple of weeks ago, the Ethereum network completed one of its developmental stages. It moved from the PoW to PoS. This was a historic landmark for the crypto community and other projects seem to follow suit in the long run.
Ethereum’s co-founder, Vitalik Buterin, has mentioned the transition of Dogecoin from PoW to PoS. Just as he mentioned ETH’s move to the proof-of-stake mechanism. The ETH co-founder, who sits on the advisory board of the Dogecoin Foundation has now added Dogecoin and Zcash, another crypto project that should move to PoS.
There’s a proposal to build a community staking version that resembled the PoS mechanism. This would allow DOGE users to stake their coins just like every other network on the PoS consensus mechanism. Users will therefore be rewarded with extra tokens for staking.
Another reason DOGE will like to move to the PoS is its scalability. According to Buterin, scalability is the most important thing asides from privacy especially when it comes to fees.
Dogecoin is making moves to migrate to the PoS as stated on its website. It stated that little progress has been made since Vuterin made it known and it’s currently in the proposal status.
As things stand, only time will tell if Dogecoin will switch just as it was for Ethereum to finally migrate to PoS. Time will also tell if Bitcoin will also bow to the pressure and move to a sustainable consensus mechanism.
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The Bottom Line
Dogecoin is the second largest PoW cryptocurrency today after Ethereum completed its merge to become a fully use PoS. Other crypto projects have been predicted to migrate to the PoS after the historic landmark in the crypto world.
Dogecoin and Zcash have been tipped by Ethereum’s Vitalik Buterin. Only time will tell if they’ll migrate. As for DOGE, it is currently on a ”proposal status”.