Ethereum 2.0 v Dogecoin: The Battle to Become the Currency of the Internet Begins
Here’s how Dogecoin could overtake Ethereum 2.0 to become the internet currency of the internet
Robinhood CEO Vladimir Tenev is a big fan of the cryptocurrency, Dogecoin. The CEO of a stock and cryptocurrency trading app believes Dogecoin has the potential to become the “internet currency.” Tenev explains how Dogecoin could truly be the future currency of the internet and the people in a series of 12 tweets posted on Thursday. To begin, he observes that transaction fees for crypto transactions must be “vanishingly small.” Tenev believes Dogecoin has already arrived. As of last November’s 1.14.5 update, typical transaction fees have been US$0.003 which you can experience when compared to the 1 to 3% network fees charged by major card networks. The CEO of Robinhood also revealed the block time of Dogecoin transactions. The time it takes miners to mine a block and verify a transaction is referred to as block time. Block time should be fast enough that the transaction is recorded in the next block in less time than it takes to pay at a POS terminal.
But it shouldn’t be so quick that miners start building too many competing chains and waste too much energy establishing consensus
Doge’s block time is currently 1 minute. Tenev believes it is too long for payments, adding that “a ten-second block time would be more appropriate as it would be less than the typical time spent completing a debit card transaction.” Tenev also drew a comparison between the transaction speeds of Dogecoin and Visa.
He emphasized that Dogecoin throughput is approximately 40 transactions per second with a 1MB block size and a 1 minute block time (TPS). In comparison, Visa’s network can theoretically handle 65,000 transactions per second.
Doge would need to significantly outperform Visa, which would require increasing throughput by at least 10000x. Fortunately, increasing the block size limit is a simple solution. Tenev responded to criticism that Doge is inflationary and has an infinite supply, as opposed to Bitcoin’s finite supply of 21 million coins: 5 billion new Doge are created every year, and the current supply is about 132 billion.” As a result, the current inflation rate is less than 5% – less than USD!
” In other news, Robinhood announced that customers can now purchase and sell four new cryptocurrencies via its app and website: Compound (COMP), Polygon (MATIC), Solana (SOL), and Shiba Inu (SHIB). Currently, 20 cryptocurrencies are available for trading on the Robinhood app, including Bitcoin, Ethereum, Litecoin, Dogecoin, Ripple, Stellar, Monero, and others.