• Dogecoin Upgrade: A Lot of Change, A Lot of Wow

  • While the price of Dogecoin has slowed, Elon Musk’s tweets and Dogecoin developers have not. In the near future, Dogecoin is likely to receive a significant update. Two independent ideas from developer Patrick Lodder are included in the new Dogecoin improvements.

    The initial proposal, submitted on March 14th, will include features comparable to those found in Bitcoin, such as bug fixes and the ability to expand the chain’s capabilities. The second, and most current, proposal contains a significantly decreased transaction cost, which will, among other things, reduce the average fee by 100x.

    The cumulative upgrade will add several Bitcoin features to Dogecoin, such as segregated witness (SegWit), which reduces the risk of transaction malleability while also increasing block capacity. Transaction malleability was once a problem in Bitcoin that allowed someone to change the codes that identify transactions in such a way that it was difficult to verify if a withdrawal had occurred. A user might leverage the tiny bug to request a withdrawal, alter the code to hide the activity, and then request another withdrawal, forcing the exchange to deliver Bitcoin from its own pocket, thereby doubling the user’s holdings. While many exchanges were aware of the problem and had developed measures on an exchange level to address it, Mt. Gox, a less technically prepared exchange, was not, which contributed to its notorious downfall.

    SegWit enhances block storage capacity by separating sections of data in a transaction, in addition to reducing transaction malleability. The ‘witness,’ which holds the data needed to validate a transaction’s legitimacy, is split from the remainder of the block with SegWit, allowing for more inputs or transactions per block while retaining valid transactions. Dogecoin will also gain ‘CheckSequenceVerify,’ or CSV, which allows Bitcoin to create payment channels like as the Lightning Network, which substantially scales its capacity to manage greater transaction volumes. Because the combination of SegWit and CSV enabled Bitcoin’s Lightning Network, this upgrade throws up a slew of new possibilities for Dogecoin. Aside from a significant decrease in average fees, the most recent proposal lowers the minimum broadcast charge, or the fee a transaction must pay for a node to relay the transaction across the network.

    Another variable that will alter is the dust relay transaction charge for Dogecoin. It is called ‘dust’ whenever someone tries to send a miniscule amount of Dogecoin with a value lower than this defined charge. The higher the dust relay transaction fee, the more difficult it is to send tiny amounts of Dogecoin. If the value of a coin rises dramatically, this can become a issue. What was once termed “dust” may now have a higher value in terms of dollars if its value rises. The concept intends to reduce the transaction fee for dust relays. If Dogecoin’s value rises in the future, microtransactions will become easier.

    Overall, Dogecoin’s new improvements will reduce transaction costs, lower dust limitations, somewhat raise blocksize (scale transactions), reduce transaction malleability, and enable payment channels akin to Bitcoin’s Lightning Network. So, Dogecoin is getting a much-needed makeover that will put it closer to Bitcoin’s level, at least in terms of basic features like SegWit. Dogecoin is still years behind in terms of applications being built on its network, but these changes will make it more useful and open the door to potentially more exciting future features. In general, these adjustments benefit the memecoin, which was previously believed to be a pointless satire on the business.

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