What is Dogethereum?
Dogethereum also referred to as Dogecoin Ethereum, was a test project where developers were trying to find out whether Doge coins could be transferred to the Ethereum (ETH) network, be used there as individual entities and then be returned to the Doge network.
This means a coin of one blockchain network entering the network of another blockchain and getting back to its original blockchain without being exchanged. This required a way to solve the huge computational scalability problem that arises in transactions.
But how could this be even possible?
Over the years, blockchains have suffered from their limited scalability. While other forms of funds transfer like Visa make more than 1,500 transactions per second, Ethereum (ETH) can hardly make a 20 transactions per second practically speaking. Ethereum is even better since some blockchain networks like Bitcoins can even not do 10 transactions per second.
Comparing the scalability of the traditional money transfer methods to that of the blockchain networks is like a joke. They are completely apart. It is like comparing Neptune and Earth.
Even transferring same coins from one person’s account to another person’s account requires quite a process. A miner will have to pick the coins being transferred and place them into a block and then validate them and release them to the recipient on the other end. All these ends up eating a lot of time. And in addition, in the process the miner charges some transaction fee for all that.
Another issue is the gas limitation where every block has a gas limit. Therefore, a miner can only bring together transactions whose gas requirement add up to the gas limit of the block they are being put into. This limits the number of transactions that can be done through a single block.
However, developers have come up with a number of proposals to deal with the issue of scalability and one of those proposals is the TrueBit.
TrueBit is a smart contract which scales computation involved in transactions through interactive verification. Although not very popular like the Raiden and Casper, TrueBit is the only technology that could solve the computational scalability problem.
The main idea behind Dogethereum project was to take all the doge coins to the Ethereum network and have them operate as ER20 Tokens there until they return to the doge network.
Although it had proved to be quite difficult, TrueBit’s Developers were able to pull a fast one by using the Rinkeby testnet and they accomplished the task of moving Doge coins to the Ethereum network and back.
This was a real success!
What it means for Ethereum (ETH) and the rest of cryptocurrency world?
Once this technology is fully developed, the problem with Ethereum scalability will be 90% solved.
It will also mean you could use any token on any blockchain network without having to need an exchange platform.
It is just a matter of time!
This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.