Why Ethereum Co-Founder Sees Elon Musk’s Plan For Scaling Dogecoin As Infeasible


Ethereum (ETH) co-creator Vitalik Buterin penned a blog post Sunday, explaining why Tesla Inc (NASDAQ:TSLA) CEO’s vision for Dogecoin (DOGE) may encounter technical roadblocks.

What Happened: Buterin said there were “important” but “quite subtle technical factors” that limit blockchain scaling. 

The cryptocurrency co-creator referenced a tweet by Musk that touched on DOGE’s emergency as a leader among cryptocurrencies should it implement certain changes.

Buterin explained why it is difficult to make “Musk’s wishes” come true “without leading to extreme centralization and compromising the fundamental properties that make a blockchain what it is.”

He emphasized that it was important “for blockchain decentralization for regular users to be able to run a node.”

Why It Matters: Buterin touched on decentralization as a means to reduce security risks and network failures.

“We don’t know what the exact threshold is at which herd immunity against coordinated attacks kicks in, but there is one thing that’s absolutely clear: more nodes good, fewer nodes bad, and we definitely need more than a few dozen or few hundred,” wrote the Ethereum co-creator.

Buterin noted that while sharded blockchains “can scale much further because no single node in a sharded blockchain needs to process every transaction” even there, there are roadblocks to capacity.

As for Ethereum, he pointed out that the network could process over a million transactions per second with sharding.

“But it’s going to take work to do this without sacrificing the decentralization that makes blockchains so valuable,” Buterin wrote.

Last week, another Ethereum co-creator Charles Hoskinson — who is also the founder of Cardano (ADA) — dished out advice to Musk on how to create a better Dogecoin.

Price Action: ETH traded 3.1% lower at $2,145.86 at press time, while DOGE traded 8.42% lower at $0.31. Bitcoin (BTC) traded 3.47% lower at $35,448.30 over a 24-hour period.

Author: Shivdeep Dhaliwal

Read more at: https://www.benzinga.com/markets/cryptocurrency/21/05/21250654/why-ethereum-co-founder-sees-elon-musks-plan-for-scaling-dogecoin-as-infeasible

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