What was once just a joking interpretation of one of many meme-worthy lines inspired by the 2015 Shia LaBeouf clip can now be read as an assessment of the sheer potential of NFTs: “Don’t let your meme become a dream” — and when We saw it come to fruition when a Nyan Cat-based NFT sold for $600,000. Now it’s happening again, as Dogecoin continues to evolve as a platform for decentralized finance, blockchain gaming, and of course, NFTs. At the heart of the further legitimacy of the OG meme coin is Dogechain – which was recently announced as a major layer 2 network for the meme coin.
OK, what is Dogecoin?
Dogecoin is a cryptocurrency — just like Bitcoin or Ethereum — that was originally developed as a joke by software engineers Billy Marcus and Jackson Palmer. It is also the epitome of internet culture in the early 2010s, as Dogecoin was originally launched in December 2013. The coin takes its name from the now-classic dog meme – an image of a surprised-looking Shiba Inu superimposed on the dog’s alleged internal monologue in Comic Sans. However, despite the stupid presentation and branding of the coin, serious work has been done to get the meme coin up and running. Launched when Bitcoin was still one of the few big players in cryptocurrencies, Marcus and Palmer sought to make the underlying blockchain more efficient. They succeeded, and the Dogecoin blockchain touts faster block times and transaction speeds than Bitcoin. Now, if you’re wondering where to buy Dogecoin for yourself, the currency is currently available on most cryptocurrency exchanges. At the time of writing, the likes of Binance and Coinbase offer users the ability to trade Dogecoin for both fiat and cryptocurrencies. But if you’re looking to make it an investment, make sure you’re ready for the next rogue Elon Musk tweet (or statement). On top of that, instances like Dogecoin’s Reddit-fueled surge of 800% in January 2021 increased the coin’s potential volatility as an investment.
Brief Summary of Layer 2 Networks
With regard to blockchain, layer 2 refers to networks built on top of existing blockchains, designed to enable more efficient large-scale operations. Within the Web3 development circle, creating a layer 2 network is one of the most commonly used solutions to the difficulty that each blockchain faces in processing all the transactions it verifies on a daily basis. Ethereum — the de facto blockchain for minting NFTs — touts layer 2 solutions like Polygon. In addition to addressing the scalability issues of each blockchain, by taking a portion of the blockchain’s transaction throughput, layer 2 solutions also support the development of decentralized applications (dApps) that do not interfere with the core functionality of the blockchain. This has made Layer 2 networks a popular host for dApps of all kinds, from crypto wallets to decentralized finance (DeFi) to playing money-making (P2E) games and of course NFTs.
What Dogecoin’s Layer 2 Means
So what does this mean for Dogecoin? Through its new layer 2 network, Dogechain, various utilities are now open to Dogecoin holders. It can also improve efficiency compared to Dogecoin due to its proof-of-stake authentication mechanism. According to its website, “[with] With Dogechain, Dogecoin holders can do more than simply hold and wait for Dogecoin to go to the moon! Additionally, the Layer 2 network will reportedly enable Dogecoin holders to use the cryptocurrency to pay gas fees. However, Dogechain differs from other Layer 2 networks in that it does not directly build on existing Dogecoin blocks Runs on top of the chain. Instead, Dogechain acts as a bridge between Dogecoin and its custom polygon-based network. Therefore, dApps built on Dogechain will not use actual Dogecoin, but rely on Wrapped Dogecoin – A proprietary token that ties its value to the actual Dogecoin. It’s worth noting that Dogechain is far from the first layer 2 network built on top of the Dogecoin blockchain. Back in 2014 – at One year after Dogecoin first appeared – a Dogecoin layer focused on creativity and social good launched called Dogeparty. Compared to Bitcoin’s CounterParty layer-2 that minted early NFTs like Rare Pepes and Spells of Genesis , DogeParty is home to the very first NFTs on Doge, offering countless fundraising opportunities for Dogecoin holders large and small.
Troubled Dogchain Released
According to Decrypt, the value of Dogecoin surged 11% in August last year. Much of the renewed interest in Dogecoin has come from the launch of Dogechain.Unfortunately, the initiative has no direct connection to the original Dogecoin team, according to a tweet Co-signed by the official Twitter account of the Dogecoin Foundation.Furthermore, a independent investigation Evidence of a massive Dogecoin dump done by one of Dogechain’s developers was discovered by Web3 sleuth ZachXBT. According to CoinGecko, the value of Dogecoin has fallen to a 30-day low since news of the Dogechain launch first circulated in Web3 circles. However, this has not hindered the popularity of Dogechain.In a tweet on September 2, Dogechain’s Twitter account reported that it exceeded 15 million trade. So where did the original meme project end, and where does this new Web3-ready initiative begin? Hard to say. Despite how far the original Dogecoin developers are from this new project, its commitment to providing all the latest utilities for Dogecoin “hodlers” is hard to deny. We’ll have to wait and see how Dogechain’s story unfolds — and whether it can continue in the spirit of the meme coin that started nearly a decade ago.