Crypto exchange platform, Robinhood’s CEO Vlad Tenev tweeted a thread mulling over the question “Can #Doge truly be the future currency of the Internet and the people?”.
The CEO points out the necessary fact that the nature of Doge is inflammatory, owing to its infinite supply. Currently 132 billion doge coins are in circulation and each year 5 billion new doge coins are mined. This puts the inflation rate at less than 5%-which the CEO points out is less than the US. Dollar.
Vlad then goes on to point out the necessary changes that would be needed to scale the meme coin. First off, the transaction fees need to be miniscule. Dogecoin is already there, feels Vlad as its transaction fee is about $0.003 on Robinhood.
He compares this fee with the network fees charged by other major card networks, which is 1%-3%.
The one major feature the meme coin will need to work on are its transactions per second (TPS). Currently the TPS of Doge is 40 because of a block time of 1 minute and a 1MB block size.
The CEO says that the block time of Doge needs to be reduced to 10 seconds.
The coin also needs to increase its block size to 1GB and eventually to 10GB to sustain scalability. Vlad mentions the traditional payment system Visa’s 65,000 TPS for comparison.
Upgrading to these features will also require substantial upgradation of the hardware. This will result in miners not being able to run nodes on Raspberry Pi at home. Vlad feels that this is a fair tradeoff.
The Robinhood CEO ends his didactic thread by asking the Doge core developers to work on increasing the block size limit over time.
Dogecoin is currently the 11th largest cryptocurrency with a market cap of $19.5 billion. There has been an outpouring of support for this meme coin from various sources.
Virtual currency exchange, Bitcoin of America recognized the rise in popularity of Dogecoin and thought it was time to include it in their Bitcoin ATM machines (BTMs). This adoption led to an acute increase in the price of dogecoin.
