One of the most well-known cryptocurrency assets available is Dogecoin, the original meme coin. Based only on market capitalization, the coin is rated eleventh out of all cryptocurrencies. In 2013, DOGE made its market debut as a lighthearted dig at the early days of Bitcoin. But since then, the coin has developed a devoted following, and new additions are released regularly. Dogechain was one of these modifications.
Many people identify the Layer 2 chain solution with the DOGE brand even though it is not based on the Dogechain blockchain. Utilizing Polygon Edge technology, the blockchain that is compatible with Ethereum was created. However, it’s unclear how Dogechain will carry on with business now that Polygon has opted to end the Polygon Edge faction. Prominent figures in the Dogechain and Dogecoin communities have made it clear that they are unrelated.
Users must first bridge their tokens to wDOGE (wrapped DOGE) to use DOGE on Dogechian. Traders can still take advantage of the capabilities after bridging DOGE to wDOGE, even though these scaling benefits do not directly assist DOGE. The chain can both directly and indirectly help DOGE’s cause as it uses more and more. Will it, however, have a sufficient impact to raise Dogecoin to unprecedented levels by 2024?
But first, it’s important to familiarise yourself with Dogechain and its features.
Knowledge of Dogechain’s Features
An L2 solution called Dogechain attempts to address the problem of more transactions overloading a network. L2 chains, which carry out off-chain transactions to ease the load on the primary network, function similarly to side roads constructed on a blockchain.
L2 chains perform thousands of transactions off-chain, which improves scalability. It maintains lower fees while enabling quicker transaction completion. Additionally, Layer 2 solutions have multiple security mechanisms and are quite secure. These advantages are also inherent to Dogechain as an L2 solution. In addition, the solution lets users stake wDOGE to get additional benefits.
To attract players, developers may also produce P2E (play-to-earn) games. Furthermore, the platform facilitates the generation and exchange of NFTs. Although not just Dogecoin users can benefit from these advantages, the DOGE community can use them to reach new heights.
Dogechain’s Potential Advantages for Dogecoin
Dogecoin currently uses proof-of-work, or PoW, for consensus. Due to the antiquity of the structure, transactions take a while to complete when network traffic is high. Furthermore, a lot of network congestion raises transaction costs, which deters people from using Dogecoin. Above all, Dogecoin’s application cases are limited because it is primarily utilised as a P2P payment system without any smart contract capabilities.
Dogecoin’s Layer 2 features can help with these problems. Users can access NFTs, DeFi, and additional smart contract-powered apps by turning DOGE into wDOGE. For DOGE consumers, Dogechain also creates the prospect of a speedier and less expensive transaction process.
Difficulties and Uncertainties Dogechain’s surroundings
Right now, the closure of Polygon Edge is Dogechain’s largest problem. The solution was created with Edge technology, and Dogechain’s future business plans have not been made public.
Dogechain is still in its early stages other from this. The solution has to get above its shortcomings in order to establish long-term stability. Prominent brands such as Lightning Network and Polygon POS already cater to the same clientele as Dogechain. Therefore, the L2 solution faces a big hurdle in trying to outperform these chains.
For the solution to work, it must also choose its tokenomics and security model. Since Polygon closed Edge down months after Dogechain launched, L2 has to prepare for unforeseen circumstances in order to become well-known.
Prospects of Dogecoin by 2024
Dogechain still has a ways to go in the larger cryptocurrency industry. Offering use cases that aren’t now provided by reputable brands isn’t the answer. Regarding its unofficial affiliation with Dogecoin, the relationship does not provide enough support for the solution to remain viable. Even Dogecoin has been finding it difficult to stay in the top ten cryptocurrency rankings.
In the last year, DOGE’s value has decreased by 2.25%, but the majority of its rivals have seen increases in value. Given the impending regulatory changes, DOGE is now experiencing a lacklustre market mood. That does not imply, however, that Dogecoin will not benefit from Dogechain’s success and vice versa. Even though the government have confirmed that there is no direct link between the projects, they are indirectly related.
Dogechain has the potential to become a prominent player in the L2 market if it can secure a foundational platform and technology following Polygon Edge’s closure. By utilising the platform, the Dogecoin community can also use it to address the problems caused by its PoW mechanism. However, Dogechain still has a few obstacles to get through. The chain is not very special, it competes fiercely, and it is too small to handle sudden changes in regulations.
Even so, if it continues to exist in the next years, it might have an impact on the market. For some time to come, cryptocurrency aficionados should continue to be aware of the L2 solution.
Despite having no official relationship, consumers may perceive Dogechain and Dogecoin as being the same due to their surface-level similarities. Dogechain appears to be the best way to support Dogecoin, as the meme coin is having trouble overcoming its PoW problems, which are causing transaction costs to rise and finality to be delayed. The chain provides access to NFTs, DeFi, and related use cases for the DOGE community.
But before that can occur, Dogechain needs to find a solution to the problem of Polygon Edge being shut down. In 2024, DOGE’s market performance could be significantly enhanced if the L2 chain is able to discover an optimal solution.
Even so, before making any investments, consumers are strongly encouraged to review the company’s whitepaper, tokenomics, and official documentation. It is becoming more difficult for Dogecoin and Dogechain to distinguish out because to the increasing rivalry in the L2 and cryptocurrency scenes.
Both initiatives need to find a method to get past their basic use cases’ simplification if they are to continue being relevant and long-lasting.