The largest meme coin, Dogecoin (DOGE), has been on a cruise amid the current bloodbath and doom in the cryptocurrency market, thanks to the enthusiasm about the newly established blockchain named Dogechain.
New blockchains dedicated to offering games and NFTs continue to surface on a frequent basis. However, Dogechain, especially caters to Dogecoin holders, seems to have the possibility of turning some heads.
The launch of the Dogechain and rise in Dogecoin pricing are mostly the result of the euphoria surrounding the Ethereum upgrade and the ongoing momentum in the cryptocurrency sector.
The Dogechain team stated that they had been astounded by the reception to Dogechain and that over 58,000 wallets had been registered since the network opened a week ago, with over 480,000 total transactions.
What is Dogechain?
Dogechain an EVM-compatible proof-of-stake blockchain, aims to give Dogecoin scalability, security, robustness, and utility. In other words, Dogechain doesn’t rival Dogecoin. Instead, it seeks to complement the numero uno meme cryptocurrency and give it smart contract functionality.
As a layer 2 scaling solution, Dogechain is advertised as supporting DeFi, NFTs, and gaming. However, according to its whitepaper, DogeChain is not based on the Dogecoin network but rather the Polygon Edge “private label” framework, which is compatible with Ethereum.
Additionally, because it is compatible with the Ethereum Virtual Machine, it is able to execute dapps created for Ethereum. This will bear the gamble and strive to seek the DOGE user base and supporters of its ecosystem.
Native Currency of Dogechain: the $DC token
The ethereum compatible blockchain also introduces a native cryptocurrency, the Dogechain token ($DC), in addition to $wDOGE. This community-focused coin has several applications and acts as the main governance token for the network.
It’s worth emphasizing that at the launch of the mainnet, the whole amount of $DC tokens will be pre-mined. A limited quantity of $wDOGE (1000 tokens) will be simultaneously created by the protocol to be used as fuel for signing the initial bridging gas fees.
$DC will take on the role of the “go-to token” for powering transactions, smart contracts, and dApps once the blockchain stabilizes.
Users will be spoiled with choices as they will be entitled to have two distinct options to pay for transaction fees on Dogechain – $wDOGE and $DC.
Such a Community! Many Friends! Many Gifts!
- Members of the community who possess $DC tokens have access to exclusive “Hodlers Only” benefits and features, such as membership in the private Dogechain Alliance Club on Discord.
- Additionally, $DC holders will be able to compete for free seats to the 2023 Dogechain Conference thanks to token permissions. The conference is a significant draw for developers of the ecosystem looking to network and present their work.
- $DC tokens, as Dogechain’s official token, allow users to participate in proof of stake governance.
- The dogechain team is also getting ready to give the Dogecoin community millions of $DC tokens via airdrop.
Purpose of Dogechain
It’s not the first time that an unauthorized project has become an essential element in the DOGE ecosystem. Dogechain’s principal aim is to increase the use cases for Dogecoin by offering it the much-needed utility.
To accomplish this, Dogecoin users only need to wrap their $DOGE into Dogechain smart contracts to receive $wDOGE PoS tokens. Users will be able to enjoy an ecosystem of DeFi products, NFTs, and GameFi using $wDOGE tokens, which are based on the blockchain and indirectly fueled by their original $DOGE tokens.
Furthermore, the cherry on the cake is that the Dogechain users can use $DOGE for gas fees. Dogechain thus brings utility to Dogecoin users tired of simply hodling $DOGE!
Potential Use Cases
- Minting and trading NFTs while purchasing gas with $DOGE to participate in the NFT market.
- Engaging with the expanding blockchain gaming community and profit-generating GameFi prospects.
- Participating in decentralized exchanges to trade tokens and make value predictions.
- Having access to cutting-edge financial tools like liquidity mining, lending, and staking.
- Participating in the metaverse revolution via Dogechain-based NFTs.
- Contributing to DAOs and providing funding for entire communities.
However, there are promises on the Dogechain website. It promises to be a brand-new blockchain created and planned to be user-driven. There are no VCs and no lofty claims that the company cannot keep, such as 1 trillion transactions per second driven by a game-changing consensus algorithm. Overall goal of the initiative is to give Dogecoin users access to blockchain applications.
Main Features of Dogechain
Some of the high level features that truly set it apart are as follows:
- EVM-compatible: Existing smart contracts for Ethereum can be readily transferred to Dogechain without requiring any additional modifications.
- Cross-chain compatibility: The Dogechain network can simply use Dogecoin by wrapping it via the Dogechain bridge and sending it back to the Dogecoin network when needed.
- IBFT Proof-of-Stake (PoS) consensus: The network allows participation from community users, ensuring a permissionless and decentralized blockchain.
- Decentralized Governance: The community members (token holders) can propose ideas, assign authority, cast votes on blockchain-related issues & activities, and have a say on governance decisions.
Inspite of all the use cases and much talked about features Dogechain is not an “official” Dogecoin initiative. The Dogecoin Foundation claimed that neither it nor the coin’s original creators, Jackson Palmer and Billy Markus, are affiliated with Dogechain.
A Dogecoin developer, with twitter handle @cb_doge, stated that Dogechain is “another knockoff token” and informed the DOGE holders of influencers endorsing the project.
Let’s continue our discussion on the popular Dogechain as it already is online and running, allowing users to send and receive DOGE and communicate with decentralized exchanges.
Applications on top of Dogechain
Dogechain grants Doge holders superpowers such as DeFi, NFTs, games, and much more! It’s time to embrace the Doge community’s full brilliance and possibilities.
The ERC721 protocol will be used by Dogechain to enable users to publish their own NFTs. Dogechain NFT owners will be able to incorporate their NFTs into the current NFT environment since this tested NFT standard is widely acknowledged by marketplaces and metaverses.
$wDOGE and $DC are DeFi-capable cryptocurrencies that can be locked in various liquidity pools and provide rewards to their holders. As an EVM-compatible blockchain, DeFi protocols like Uniswap and SushiSwap can be seamlessly integrated with Dogechain.
Additionally, a number of Layer 2 solutions from the Polygon Edge architecture, such as ZK Rollups and Optimistic Rollups, will allow Dogechain to enhance their current DeFi transaction speeds and handle some privacy issues.
On the Dogechain smart contract platform, developers will be able to create complete virtual worlds and blockchain games. The $wDOGE and $DC coins will therefore let users transfer digital resources in their preferred metaverses and take part in virtual gaming economies.
“Dogechain promotes equity and opportunities for all. Our objective is to build a blockchain that the public actually owns.”
After the launch of the new Dogechain, Dogecoin may no longer be considered a parody. Now, it’s likely that meme coins will serve as a “gateway” to the larger crypto market.
On the other side, other people are thrilled about the opportunity to experiment with apps and tokens on a chain with a Dogecoin theme and make predictions about silly-sounding tokens.
Only time will tell how much of this assertion is true. It will be interesting to watch if those promises are ultimately followed. Social media users are understandably wary of Dogechain given the claims that Dogecoin’s founders and core developers aren’t engaged.