Amid all-time highs for bitcoin (BTC), ethereum (ETH) and varied other tokens, dogecoin (DOGE) has remained one thing of a black sheep of the crypto household. It rallied virtually 2,000% up to now 12 months, but it’s nonetheless extensively considered a ‘joke’ forex, regardless of — or partly due to — the vocal support of individuals like Elon Musk.
However even when it nonetheless carries a repute as a kind of ‘unserious’ cryptocurrency, its current rally has had one inadvertent but constructive impact: it renewed some extent of growth work on the crypto, which was initially forked from Fortunate Coin, which was forked from Litecoin (LTC), which was forked from Bitcoin.
Nonetheless, how substantial and long-lasting is such new growth more likely to be? Contributors to Dogecoin itself advised Cryptonews.com that they’ll be specializing in sustaining “shut parity” with Bitcoin Core and bettering interface options, whereas outsiders are skeptical that the event will both endure past the present rally or enable Dogecoin to compete with the main cryptos.
Value rises = growth rises
One 12 months in the past, the value of dogecoin was USD 0.0026. It remained not too removed from this degree till January 1, 2021, when it greater than doubled in worth, reaching USD 0.013 in a few days.
The reason for this rally? An grownup movie star tweeted that she’d been holding DOGE since 2014.
Been HODLing my $Doge since 2014. MUCH PATIENCE. TO THE MOON # #dogecoin https://t.co/1jzK48D4sS
This was, however, small potatoes compared to the rally it experienced at the end of January, when it smashed into the top ten cryptoassets by market capitalization after rising by over 400% in a couple of days. Brought about largely by GameStop-style collective mania infecting the crypto (and notably DOGE) market, its ongoing ascent to a peak of USD 0.839 was additionally helped alongside the best way by varied tweets from Elon Musk.
The upshot of all of this is that, with more people buying DOGE, more people were obviously using the Dogecoin protocol and blockchain. As a result, Dogecoin developers were more or less compelled to resume tinkering with its code.
“Due to this renewed interest, we’ve gotten better insight into the performance of software we’ve written and this has triggered us to improve where we can, both short and longer-term. We’ve seen a burst in demand, where in 24 hours the number of nodes increased more than 15-fold, and it is at these times that under-optimized logic becomes exposed,” said Ross Nicoll, Dogecoin’s lead maintainer.
Areas of focus
Nicoll added that the Dogecoin network has never witnessed “such an influx of new users,” something which has exposed a number of weaknesses. For example, most Dogecoin nodes, by default, do not currently allow inbound connections with other nodes, and as a result Dogecoin wallets occasionally have trouble syncing with each other.
This is why Nicoll and the core Dogecoin team acknowledge that “our peer-to-peer communication layer can use further optimization.” More generally, the developers aim to get Dogecoin — which hasn’t had a major upgrade for around two years — “up-to-par with current Bitcoin performance and [introduce] other, more Dogecoin-specific improvements”
In particular, the team will be looking at three key areas, according to Nicoll:
- “Setting out a road map for enabling protocol features which Bitcoin has already introduced to both increase Dogecoin’s functionality and maintain close parity with Bitcoin Core.”
- “Migrating Dogecoin Core users to hierarchical deterministic (HD) wallets so a backup of their wallet can always be used at any future point in time, rather than new backups needing to be taken regularly.”
- “There are some interface fixes we need to tackle; aesthetic bugs that need to be squashed.”
This is pretty much all the developers have planned for the near-to-medium term, although Nicoll added that any “high quality contributions which do not undermine the security and integrity of the coin are welcome” from any developer (regardless of affiliation).
Asked whether Dogecoin’s developers might reconsider a change to such a key feature as the cryptocurrency’s inflationary supply structure, Nicoll gave a reasonably clear ‘no.’
“At this level, we’re not satisfied that any adjustments must be made to Dogecoin’s financial parameters which were lively since its inception,” he mentioned.
For figures parked inside the communities of Bitcoin, Ethereum and different main cash, the long term prospects for Dogecoin growth appear unpromising.
“If there’s any growth, it will not final, is my prediction. Curiosity will go away a short time after value dips once more,” mentioned Bitcoin writer/educator/developer Jimmy Track.
For Ethereum-focused ConsenSys’ Lex Sokolin, Dogecoin is “technically sound” however gained’t actually be the positioning of serious technical breakthroughs or innovation in crypto.
“The long run I see is in programmable blockchains moderately than these devoted to worth switch. To that finish, Ethereum is the place software program growth is actually taking place,” he advised Cryptonews.com.
That mentioned, Sokolin suspects Dogecoin’s “largest relative influence [will be] on the Bitcoin laggards like Litecoin and Bitcoin Cash,” which can be prompted to observe Dogecoin’s instance and step up their very own growth.
Sokolin additionally famous that growth and technical specs are solely half the story relating to Dogecoin, and that, in the end, the event of its group is simply as necessary.
“I’ve no crystal ball on Doge, apart from it’s a excellent image for what the financial system, markets, and Web have change into, which is to say, the uncooked social energy of the human community.”
Within the meantime, DOGE is down by 42% from its all-time excessive, reached on February 8.
DOGE value chart:
Be taught extra:
– Robinhood Suspected To Be a Dogecoin Whale As It Plans New Crypto Services
– Musk’s Doge, Bitcoin Tweets May Spur Double-Digit Returns – Report
– Are GameStop-Style Surges In Crypto Any Different From Old Pumps & Dumps?
– GameStop and Dogecoin Show How Memes Can Move Markets
– What’s in Store for Ethereum in 2021?
– Crypto Tech In 2021: Focus on Scalability, Privacy and Usability