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- 1 Marshall Hayner, the CEO of Metallicus asked for public opinion about Dogecoin’s consensus change.
- 2 A core developer of Dogecoin, Michaboar, pointed out the risks associated with the crypto.
- 3 Most people voted against the switch, so it’s hard to say whether the switch will happen or not.
Dogecoin got immensely popular due to its avatar and humor. However, it’s not just the countenance that made the token promising. Its mechanism has also been a major reason behind its success. But it seems that the platform is now changing the fundamentals on which it initially thrived.
The Shift From PoW to PoS
Recently, a prominent core developer of Dogecoin voiced concerns over the platform’s consensus shifting. Apparently, it went to a level where the developer was ready to quit. The entire chain of events kicked off on 20th August 2023 with an X (formerly Twitter) post. The CEO of blockchain startup Metallicus, Marshall Hayner shared a poll in his post. He asked whether the users will be interested in Dogecoin if its structure changed in PoS.
The poll results heavily supported the original PoW with 60.1% votes going in favor of it. At the same time, the core developer who identified as Mishaboar shared some insights into the whole situation.
Staking: Going by the statement, it seems that Mishaboar isn’t really dead against the alternative consensus. He refers to a specific lending-based model as “staking”. The developer stated that such models expose the platform to some real dangers. To execute this model, one needs to have insider information and Mishaboar is not happy with that.
Shifting to PoS: Mishaboar also expressed his share of doubts about the PoS consensus. However, he did not express any specific reason for it. Nonetheless, he indicated that he would rather like Dogecoin to adopt another PoW. He also suggested customizing the dog logo.
Emphasis on Research: Michaboar also said that he’s not against the protocol-switching consensus mechanism. He just wants the team to make informed decisions based on research. The developer stressed analyzing data before doing the switch. Also, he gave some risk factors that may jeopardize the functionality of Dogecoin.
- Consensus mechanisms don’t yield the results users expect.
- They often come with high levels of centralization and are controlled by developers with sizable holdings.
- They have a history of big failures.
- They can even offer a subpar user experience that frustrates the users.
Problem with PoS: Mishaboar also expressed concerns about the functionality of PoS. He pointed out the voluminous cryptocurrency supply that is held by exchanges. Also, he highlighted the regulatory deviation of this consensus.
Benefits of PoS: Besides pointing out the drawbacks, Mishaboar also cited some merits of it. He said that it reduces the consumption of energy and expedites the transactions. At the same time, he offered some counterpoints.
A large number of transactions don’t require the speed that PoS delivers.
There are other means to achieve quicker payments. The protocol can deploy payment channels and payment providers.
Furthermore, all these solutions come with a centralized disposition.
Future of Dogecoin
Dogecoin is supported by a strong community. With a market cap of $88 Billion, this meme token is a true pioneer in its space. Currently, no one is sure about the consensus switch. Hypothetically, if it happens in the future, the sentiment will decide what happens to Dogecoin. Most probably, one can see the token making progressive strides.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
