Vitalik Sees a Problem in Dogecoin’s scalability

Ethereum co-founder Vitalik Buterin, in response to Elon Musk’s tweet, said that in practice it would be extremely difficult to scale and reduce Dogecoin (DOGE) fees. Musk recently stated that DOGE would “easily bypass” bitcoin:

“Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down”.

But the co-founder of Ethereum pointed out that there are important and rather subtle technical factors that limit Dogecoin’s scalability and fees. Therefore, it will be extremely difficult to affect the system without changing fundamental properties, such as, for example, decentralization.

As it turned out, the decentralization of the network is one of the most important factors that provides the necessary level of protection against the coordinated hacker attacks and minimizes the risk of a single point of failure.

Buterin noted that sharding can help to solve this problem and provide the necessary scalability.

“Sharding basically bypasses such restrictions because it separates the data contained in the blockchain from the data that needs to be processed and stored on a single node,” Buterin wrote.

He also believes that, thanks to this method, Ethereum will be able to “process over a million transactions per second with complete blockchain security.” In response, Elon Musk suggested that the co-founder of the Ethereum cryptocurrency, Vitalik Buterin, simply “fears” the growth of Dogecoin.

Post a Comment