Dogecoin is preparing for a significant transformation. Having come under fire for consuming an excessive amount of energy and being detrimental to the environment, the Proof of Work (PoW) blockchain consensus process has fallen out of favor with crypto projects.
Dogecoin is the latest cryptocurrency to announce its intention to switch to the more efficient Proof of Stake (PoS) mechanism, with some assistance from Ethereum co-founder Vitalik Buterin.
The Dogecoin Foundation has stated that Dogecoin’s Proof of Stake (PoS) blockchain mechanism enables enhanced community and DOGE holder involvement in the administration and management of the Dogecoin network.
Dogecoin was introduced to the world on December 8, 2013. The founder of this cryptocurrency is Billy Markus, who wanted to create a fun and easy-to-use digital currency that would reach a broader demographic than Bitcoin.
The proof-of-stake (PoS) consensus model represents a departure from the proof-of-work (PoW) model. In this new system, validating transactions and creating new blocks is accomplished by holding coins in a validator wallet and periodically sending these to other wallets as rewards.
Ethereum founder Vitalik Buterin discussed the meme coin in a recent episode of UpOnly, sharing what he is doing to help guide it in this forward-looking direction. As Buterin said, every major cryptocurrency except one has plans to switch to Proof of Stake [PoS] eventually. He added that once Ethereum is Proof of Stake, and once Dogecoin’s and Zcash’s plans are further along, “the arguments would even be easier to make.”
While being an advisor to the Dogecoin Foundation, Buterin suggested in a September 2021 Twitter reply that Dogecoin might switch to PoS. However, this was dismissed as wishful thinking. In late December 2021, the point came up once again following the release of the updated “trail map” for Dogecoin.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.