Doggie walk – Dogecoin (DOGE) would like to change its foundations by embracing proof of stake (PoS). It would thus join the list of projects that wish to drop the mining shovels, for a consensus mechanism supposed to be more virtuous on paper.
Dogecoin staking: what are Vitalik Buterin and Elon Musk trying to prove?
On December 23, 2021, the Dogecoin Foundation released its roadmap, which mentions a collaboration with Ethereum (ETH) co-founder Vitalik Buterin, for the development a “community staking” version of the proof of participation that would be specific to DOGE.
DOGE holders will thus be able to staker their holdings and get dogecoin winnings. According to the Foundation, this opportunity would not be reserved only for “major players”, but for all users who contribute “to the operation of the network”.
The Dogecoin Foundation is embarking on a complex project after about six years of inactivity. It remained dormant just after dogecoin founders Billy Markus and Jackson Palmer left the project. The Foundation’s advisory board includes Buterin and Neuralink CEO Jared Birchall. The latter would represent Elon Musk’s interests who is a big fan of dogecoin.
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Migration to PoS: real challenges or just a fad?
What would a switch from dogecoin to proof of stake bring? The network currently uses proof of work, and like all blockchains using this consensus mechanism, dogecoin could come under more and more attack over time, for the energy intensive nature of its mining. Musk had also qualified bitcoin mining as a pollutant, and had indirectly participated in May 2021 in a dropout of the queen of cryptocurrency.
Other projects like Ethereum are switching to proof of stake, believing that this change will allow the network to solve your scalability problems – gas costs, congestion, etc.. Should we really foresee an explosion of activity on Dogecoin, to the point of having to make such a change today?
Will dogecoin conquer new territories in 2022? Its roadmap is ambitious, worthy of a serious crypto project. Elon Musk continues to support him even opening Tesla’s official dogecoin store. Its detractors like the CEO of Ripple (XRP), Brad Garlinghouse, may have to wait a long time before they can bury the DOGE.
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