Dogechain was an issue for discussion long before it was even released, partially carried away by the enormous popularity of the meme-coin Dogecoin. In the last two months, it managed to reach new highs with 244k unique wallets and a cumulative transaction count of 50 million. In this guide, we will discuss what Dogechain is, how it works and what is its connection with Dogecoin.
What is Dogechain?
Dogechain is an unofficial Layer 2 solution for the Dogecoin project that aims to bridge over Dogecoin and allow users to access the growing decentralized finance (DeFi) ecosystem. It runs on the Polygon network and is EVM-compatible, making it a safe and trustworthy way to get involved in DeFi.
It is an independent blockchain that is dedicated to empowering Dogecoin holders. Using a bridge, Dogecoin holders can access blockchain games, NFTs and plenty of other DeFi apps. This allows them to use their currency in a number of different ways and reach new opportunities for their investments.
What is Dogecoin and how is it related to Dogechain?
Dogecoin (DOGE) is a cryptocurrency that has been gaining popularity around the world. The name comes from the Shiba Inu dog breed, which is featured on the coin’s logo. Dogecoin was originally created as a joke/meme currency. Still, despite its origins, it has grown to become one of the most popular cryptocurrencies in the world with its value increasing by over 1000% in the last years. This growth has been driven by a variety of factors, including social media buzz and endorsement from celebrities.
On the other hand, Dogechain is an independent project that seeks to improve Dogecoin’s functionality by providing more utility for the currency. While not formally affiliated with Dogecoin, Dogechain shares many of the same goals as its cryptocurrency counterpart and is set to have a big impact on the Dogecoin token.
Investors are still paying attention to Dogechain, even though it’s been confirmed that it’s not an official Layer 2 network for Dogecoin. The value of the project’s native cryptocurrency, DC token, has increased six-fold in the first five days since its launch. This shows that investors are interested in the development of Dogechain, regardless of who owns it.
On top of that, before DC token even launched, rumors that Dogechain was a Layer 2 network for Dogecoin caused the price of the latter to jump by over 10% in a day. Since then, the price has gone back down, but the potential for future growth is still around.
How does Dogechain work?
Dogechain is a blockchain protocol compatible with the Ethereum Virtual Machine (EVM). It uses the Polygon Edge framework to provide scalability and flexibility for building decentralized applications. Furthermore, it retains some of the properties of its parent protocol, such as security and immutability.
Using the parent protocol offers some advantages. For example, it is EVM-compatible, which means developers can create ERC-20 tokens on the blockchain. Additionally, the framework enables Dogechain to use the PoS (Proof of Stake) mechanism, which is faster and more scalable than PoW (Proof of Work). Moreover, the smart contract capability of the protocol allows token holders to pay the gas fee with DOGE.
Dogechain also uses the Ethereum Virtual Machine (EVM) to power its operations. This makes it possible for developers to quickly build and deploy solutions on the Dogechain platform. The architecture is unique among blockchains. While most other blockchains use the “security as a feature” function of Polygon, Dogechain relies on its own sets of validators to achieve security. Likewise, the mainchain contract and checkpoint mechanism features of Polygon are also deactivated.
It is also worth mentioning that the cross-chain protocol that Dogechain uses, allows users to exchange DOGE with a wDOGE token on a 1:1 ratio. When a DOGE token is pegged, the Dogechain mints a corresponding wDOGE token. Similarly, when a wDOGE token is destroyed, a DOGE token can be withdrawn from the Dogecoin blockchain.
The combination of the Polygon Edge framework and EVM provides Dogechain with the ability to enhance Dogecoin in ways that would not be possible before. Dogecoin needed a scale and Dogechain offers more than a Layer 2 solution. It offers a unique and powerful experience for Dogecoin holders as it gives them the opportunity to exploit their DOGE coins in quite a few different ways.