02 Sep 2021 10:54 AM +00:00

Vitalik Buterin: Dogecoin Should Switch To Proof-of-Stake, Possibly With Ethereum Code

Ethereum’s co-founder Vitalik Buterin has advised Dogecoin to switch to a proof-of-stake (PoS) algorithm, suggesting the memecoin could use Ethereum code to do so.

Buterin, who recently became an advisor to the re-launched Dogecoin Foundation, made the recommendation in a restricted Twitter Q&A.

Both Dogecoin and Ethereum currently use proof-of-work protocols to validate new blocks via mining. Ethereum 2.0 will see the Ethereum network switch to proof-of-stake, using Ethereum staking instead.

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Could Dogecoin Move To Proof-Of-Stake?

When asked by Three Arrows Capital CEO Zhu Su about Ethereum/Dogecoin co-operation, the Ethereum founder said:

Personally, I hope that doge can switch to PoS soon, perhaps using ethereum code.

Buterin is a long-time advocate of proof-of-stake, having written various posts in favour of the system.

Proof-of-stake advocates cite the various security benefit the system brings, alongside a reduction in the electricity consumption and hardware requirements that come with proof-of-work mining.

However, Dogecoin developer Patrick Lodder has previously raised concerns about switching to proof-of-stake.

Commenting on a GitHub discussion about a move away from proof-of-work, Lodder noted that proof-of-stake makes sense for savings assets that don’t want to change hands too much. Here, having a significant amount of supply illiquid, or staked, can prevent bad actors from gaining significant influence. Speaking on Dogecoin specifically, he said:

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However, for a coin that aims to be a currency, it makes not much sense to make such a large part illiquid. So this may not be ideal.

Lodder also said development priority is on the Dogecoin 1.21 update but would be open to discussing PoS afterwards.

Aside from his statement on proof-of-stake, Buterin also said:

I also hope they don't cancel the 5b/year annual PoW issuance, instead they put it in some kind of DAO that funds global public goods. Would fit well with dogecoin's non-greedy wholesome ethos.

Buterin’s comments on the annual issuance reflect the 5 billion DOGE that enters circulation each year.This is worth over $1.5bn at the time of writing.

Dogecoin is known for its previous charitable ventured under the ‘Do Only Good Everyday’ motto. DOGE holders raised funds for the Jamaican Bobsled Team in 2014, while the Dogecoin Foundation launched the successful Doge4Water campaign that same year.

Read More: Dogecoin Mining: How Does It Work?

[Featured Image by Executium on Unsplash]