Dogecoin moves to proof-of-stake

Co-founder of Ethereum Vitalik Buterin has confirmed that Dogecoin (DOGE) will move to a proof-of-stake (PoS) consensus.

DOGE is the oldest memecoin in existence with a large community that will soon be able to stake their tokens to run nodes.

The proposal was initially launched back in December 2021 and has now been confirmed to be true in recent UpOnly interview with Buterin.

The PoS consensus version of DOGE will include a new coin called LibDogeCoin, a liberated version of the previous DOGE.

The new coin will include a new wallet that enables users to stake their DOGE to run the network and receive rewards.

The Dogecoin Foundation has said the staking mechanism will allow anyone to run a node and will not be limited to only large holders.

PoS consensus has been highlighted recently due to the lower electricity and hardware requirements for nodes.

The current consensus, proof-of-work (PoW), has come under a lot of criticism for the environmental impacts it has.

To change the consensus requires a new blockchain to be built and the previous version can merge with the new one to keep the ledger intact.

The news of the new consensus mechanism has met with some criticism from cryptocurrency influencers who believe PoW is much more decentralized.

Former CEO of Twitter Jack Dorsey has already expressed his concern over the security and decentralized nature of PoS networks.

Governments have recently started to look at banning miners who run PoW nodes due to their electricity demands.

Many miners around the world have switched to renewable energy sources to reduce the carbon footprint behind running a node. Some miners have switched to PoS blockchains including Cardano.

There is currently no release date for the new DOGE chain, but many anticipate the release will take some time.

Some members in the DOGE community believe the change will not happen until Ethereum 2.0 has fully launched

Shiba Inu (SHIB), the second biggest memecoin has also stated they could possibly make the shift to a PoS consensus to lower the costs around mining.

Nothing has been confirmed for SHIB but if the DOGE switch happens without an issue, we could see SHIB do the same.

Source

Updated: 02/03/2022 — 00:00