Dogecoin was the first successful memecoin in the crypto space, spawning countless copycats. Despite the years, the affection for the original token remains, even though it has its fair share of detractors. Dogecoin was originally created as a fork of Litecoin. Despite being marketed as a joke, it found immense support within the crypto community. This support made it one of the largest cryptocurrencies in the market. Even today, despite the bear market, it retains its top 10 position in the market.
Now, Dogechain, a Layer-2 for Dogecoin, is looking to unleash the full potential of the meme coin. But what is it, and how does it work?
A brief summary of layer-2 networks
layer-2 refers to a network built on top of an existing blockchain designed to enable more efficient operation at a larger scale. Within Web3 development circles, creating a layer-2 network is one of the most often used solutions to fix difficulties faced by each blockchain to handle all the transactions it verifies.
What Is Dogechain?
Dogechain is an EVM-compatible Proof-of-Stake (PoS) blockchain designed to complement the Dogecoin cryptocurrency. The blockchain is intended to bring stability, robustness, security, and utility to Dogecoin. It interacts with the original Dogecoin ecosystem and looks to enhance it by giving it smart contract capabilities. However, it is essential to remember that Dogechain is not an extension of the original Dogecoin project and isn’t built on the Dogecoin network.
Ultimately, Dogechain will look to give Dogecoin users access to features such as NFTs, blockchain-based games, and a gateway to the DeFi ecosystem, giving Dogecoin utility for a wide range of applications.
Main Features Of Dogechain
Dogechain relies on the following critical features.
- EVM Compatibility – Ethereum smart contracts can seamlessly migrate to Dogechain without any modifications.
- Decentralized Governance – Token holders can delegate, make proposals, vote on blockchain parameters, and have a say in governance decisions.
- Cross-chain Compatibility – Dogecoin can be used on the Dogechain network by wrapping it through the Dogechain bridge and then sent back to the Dogecoin network.
- IBFT Proof-of-Stake Consensus – Users can participate in the network and ensure a permissionless and decentralized blockchain.
What Is The Main Goal Of Dogechain?
The primary goal of Dogechain is to increase the utility of the Dogecoin token. Dogecoin token holders can utilize this added utility by wrapping their existing DOGE tokens into smart contracts and receiving Wrapped DOGE (wDOGE) tokens in return. The wDOGE tokens allow users to access a host of DeFi products, GameFi, and NFTs indirectly powered by DOGE. Some of the potential use cases are listed below.
- Users can participate in the NFT market, mint and exchange NFTs, and pay for gas using DOGE.
- Users can access GameFi opportunities and participate in the growing blockchain-based gaming ecosystem.
- They can also join DEXs, swap tokens, and speculate on their value.
- Token holders can access financial features such as staking, borrowing, lending, and liquidity mining.
- Use Dogechain-powered NFTs in the metaverse.
- Participate in DAOs, and fund communities.
To sum up, Dogechain promises to transform Dogecoin into a centerpiece for the DeFi ecosystem. Implementing Dogechain will allow Dogecoin to compete with the top DeFi and smart contract platforms. While it is still early days, there is considerable interest, with $200 million worth of DOGE already bridged. A smart contract platform for the Dogecoin community could be an exciting project, potentially setting off similar projects centered around other prominent meme coins.