Dogecoin, the pioneer meme cryptocurrency, has been getting billed by its fans as a possible de facto internet transactional currency. Vlad Tenev, CEO and co-founder of Robinhood, has been the latest to highlight this possibility.
Robinhood CEO suggests Dogecoin dominance roadmap
In a Twitter thread, Tenev examined the advantages the Dogecoin blockchain already has that distinguish it. One of these is “vanishingly small” transaction fees.
Typically, it costs around $0.003 to post transactions on the Dogecoin network since the last upgrade in November. As experienced on Robinhood, the low fees already make the Dogecoin network better than the 1-3% fees of traditional payment services providers Tenev noted.
However, to completely trump traditional services, the Dogecoin networks need to make several changes. Tenev suggests that block time and block size on the network be modified to increase the throughput of the network. He said:
Doge’s current block time is 1 minute… a ten second block time would be more appropriate as it would be less than the typical time spent completing a debit card transaction.
For blocksize, an increase from 1MB to 1GB, and then 10GB, can be implemented. While this would require more sophisticated hardware to implement for node operators, Tenev considers it a fair tradeoff.
This is because it would help bridge the more than 10000x difference between the TPS of Dogecoin and networks like VISA.
Dogecoin Inflation Better Than Dollar Inflation Rate
In his discourse, Tenev also touched on the often raised issue of the infinite supply of DOGE and its inflation. He pointed out that DOGE had an annual inflation rate of less than 5%, which is better than the inflation rate of the US dollar.
On this point, Tenev also added that with a fixed supply of 5 billion DOGE being created every year, the inflation rate is bound to fall. Significantly, Elon Musk, another staunch DOGE proponent also shares this view.
Meanwhile, the Dogecoin Foundation seems to already be working towards making the Dogecoin blockchain more attractive for global use. In a recent update, the developers revealed that work is underway to integrate with Starlink to allow for transactions to be carried out offline in remote locations.
DOGE is trading at $0.14, up 1.88% in the last 24 hours at the time of writing. The memecoin has not seen much change in price despite the heightened attention generated by events including Elon Musk’s move to take over Twitter.
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Source: https://coingape.com/robinhoods-cofounder-dogecoin-better-than-us-dollar/