Robinhood CEO Vladimir Tenev explained on Twitter how Dogecoin (DOGE) could become “the future currency of the Internet.” The low transaction fee is a clear advantage while the block size and the block time of Dogecoin will need to be improved.
In the thread of 12 posts, Robinhood CEO Vladimir Tenev talked about what is the advantage of cryptocurrency and what steps need to be taken to turn memecoin DOGE into a useful asset for everyday payments and transactions on the Internet.
Can #Doge truly be the future currency of the Internet and the people? As we added the ability to send/receive DOGE on Robinhood, I’ve been thinking about what that would take.— VLAD (@vladtenev) April 14, 2022
Tenev drew attention to the fact that Dogecoin's transaction fees are already low enough to make it a possible leader in electronic money. “As of last Nov's 1.14.5 update, typical transaction fees have been ~$0.003 - which you can experience on @robinhoodapp - compared to the 1-3% network fees that major card networks charge,” he wrote.
Tenev explained that 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. At the same time, it should not be so fast that miners start creating too many competing chains and expend too much energy to reach a consensus.
Based on this, Tenev said that the block size and block time of Dogecoin are the main areas that need improvement if the cryptocurrency is widely adopted. Dogecoin currently has a block size of 1 megabyte and a 1-minute block time, which means that the total throughput of Dogecoin is approximately 40 transactions per second (TPS).
By comparison, Visa's network bandwidth is roughly 65,000 TPS, which means DOGE would need to increase its total bandwidth by about 1,625 times to match Visa. Tenev said that this is not a problem and can be solved simply by increasing the Dogecoin block size limit from 1MB to 1GB and eventually to 10GB.
Create Dogecoin Billy Markus explained that he “picked 1-minute blocks 8 years ago because someone on Bitcointalk said 45 seconds on a different chain was causing lots of issues, and 60 seconds was the fastest without having too many issues. The faster while still secure the better IMO.”
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Article edited by @SmokeyShorts, you can follow him on Twitter
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.