If you’re a fan of Crypto Twitter, you’ve heard about the freshly established Dogechain project. Its name is oddly similar to that of the official Dogecoin blockchain explorer. For those who are unfamiliar, Dogecoin is a popular meme coin that two software engineers made as a joke. However, contrary to widespread misconception, the same software engineers did not start the Dogechain project.
Are you curious to learn more? Then, read this blog to understand Dogechain and how it is related to Dogecoin.
The idea behind introducing Dogechain
Looking back at the Crypto space, Dogecoin launched a wave that affected the entire industry and sparked a new meme craze. Although Dogecoin now only has traded for its primary use, the introduction of Dogechain may provide the popular meme coin with far more versatility.
Dogechain boosts $DOGE to give the $DOGE community access to Crypto apps like NFTs, gaming, and DeFi. Sadly, these apps (or any other dApps) are not supported by $DOGE. This is fixed by dogechain. Dogechain enables owners of Dogecoin to do more than mere hoard and wait for Dogecoin to reach the moon.
In contrast, Dogechain is not a legitimate Layer-2 network because Dogecoin is not its foundation. Instead, it is a distinct network built on Polygon Edge, a well-known Ethereum sidechain blockchain application. It is also compatible with the Ethereum Virtual Machine (EVM), allowing you to execute any Ethereum-built programs or video games.
How does Dogechain work?
On the Polygon network, Dogechain is a proof-of-stake (PoS) blockchain. Since Dogechain is compatible with the Ethereum Virtual Machine, it will eventually support applications and games created for Ethereum.
Overall, Dogechain will enable Dogecoin to improve to a level that isn’t achievable without integrating such advanced technology, thanks to the combination of the Polygon Edge architecture and EVM.
According to reports, the project’s main coin, $DC, will reportedly be airdropped to users soon. Users can stake their $DC tokens once these tokens are issued and create a passive revenue stream. However, users can bridge their DOGE and get Wrapped Dogecoin (wDOGE) in return while waiting for the time.
On the Dogechain network, they can use their wDOGE to engage with DeFi apps, NFT marketplaces, DApps, and games. In addition, on the Dogechain, transaction fees can also be paid using DOGE.
Notable is also how the architecture of Dogechain differs from that of all other blockchains. The blockchain is created using Polygon Edge; however, it does not take advantage of Polygon’s “security as a feature” capability. To achieve security, it uses a set of validators it has created. The checkpoint system and mainchain contracts aspects of Polygon are also disabled.
Characteristic features of Dogechain
- IBFT Proof of Stake (PoS) Consensus: Community users can join the network, ensuring a decentralized, permissionless blockchain.
- EVM-Compatible: Smart contracts from Ethereum can be readily transferred to Dogechain without requiring additional changes.
- Decentralized governance: Community members (token holders) can submit proposals, assign authority, cast votes on blockchain-related issues, and participate in governance processes.
- Chain Compatibility: By wrapping Dogecoin across the Dogechain bridge and sending it back to the Dogecoin network as needed, Dogecoin can be utilized on the Dogecoin network with ease.
Use cases of Dogechain
For holders of Dogecoin to easily access NFTs, games, and DeFi protocols and apps without giving up Dogecoin, Dogechain was created specifically for them. Let’s look at a few of the use cases below.
Users of Dogechain will be able to publish their own NFTs in accordance with the ERC-721 protocol. In addition, owners of Dogechain NFTs will be able to incorporate their NFTs into the current NFT landscape because markets and metaverses generally acknowledge this established NFT standard.
As an EVM-compatible blockchain, Dogechain is compatible with many well-known Crypto projects. DeFi protocols like Uniswap and SushiSwap, for instance, can be easily used with Dogechain. The native currencies, DC and wDOGE, can also be locked in different liquidity pools.
On the Dogechain smart contract platform, developers can create entire virtual worlds and blockchain games. Because of this, users can share digital resources in their preferred metaverses and participate in virtual game economies using the Crypto $wDOGE and $DC.
Is Dogechain related to Dogecoin?
Despite the fact that both the projects are unrelated, certainly, Dogechain will eventually have an impact on the Dogecoin token. Inaccurate claims that Dogechain is a Layer 2 network of Dogecoin drove up the price of DOGE by about 11% in a single day, even before the debut of its official token. Since that time, the price of DOGE has followed its previous path.
Even though Dogechain has been certified not to be an official Layer-2 network of Dogecoin, investors are nevertheless paying attention to the project since the DC token, the project’s native Crypto has increased in value six times in the first five days of its launch. This demonstrates that investors, regardless of ownership, closely monitor the development.
Some of the original blockchains, which were primarily concerned with handling payments, are now seeking new expansion opportunities. For many, Layer-2 networks are the answer to the scalability problem.
The Dogechain project could be a blessing in disguise because Dogecoin likewise needs a solution to scale. Since Dogechain allows the Dogecoin ecosystem to grow without utilizing local resources, it may be a superior solution to a Layer 2 network. Invest in Dogechain at your own risk, and as usual, if you decide to do so, always DYOR!Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.