Home Crypto News Dogecoin Could Doge Go Proof of Stake (PoS) as Elon Musk Prefers? Lead Dev Threatens to Fork

Could Doge Go Proof of Stake (PoS) as Elon Musk Prefers? Lead Dev Threatens to Fork

Teuta Franjkovic
Published August 21, 2023 12:32 PM
Key Takeaways
  • Mishaboar, a core dev, is opposed to a possible switch to a PoS consensus process.
  • He pointed out that such a change might cause a Dogecoin blockchain fork.
  • The shift of Dogecoin to proof-of-stake was suggested by Vitalik Buterin.
  • PoW and Bitcoin were never a favorite of Elon Musk’s.

The Dogecoin (Doge) core developer, Mishaboar, recently has made it clear  on X, that he is vehemently opposed to any prospective switch to a Proof-of-Stake (PoS) consensus method amid swirling rumors and suspicions concerning the destiny of DOGE) development.

Marshall Hayner, CEO of Metallicus and Co-Founder of FBBT Holdings, conducted a poll  to gauge the community’s opinion on staking DOGE, which has thrust the topic into the spotlight.

“If Dogecoin was stakeable, would you stake it?” Tweeted  Hayner. The poll results show a definite rift in the DOGE community, with 60.1% voting against staking and 39.9% voting in support. However, the opinions of the DOGE community’s core developers are what are sparking the most heated debates.

“It seems most PoS chains have underdelivered, are obscenely centralized and run by wealthy developers holding huge bags, have failed catastrophically, and/or are a pain to use (playing with Ethereum feels like highway robbery),” Mishaboar wrote .

However, he admits there are some PoS advantages such as s lower energy usage and potentially faster transaction.

Also, he stated :

“If this refers to a remote possibility of Doge ever switching to PoS, after what I have seen over the past two years, I would probably then move to another PoW crypto and customize the logo in my wallet to have a dog in it.”

He went on to discuss the consequences further, pointing out that such a change might cause the next Dogecoin blockchain fork, preserving the old PoW-based DOGE.

Vitalik Buterin To the Rescue

Be it as it may, Dogecoin’s prospective switch from its initial Proof-of-Work (PoW) algorithm to PoS has historically been discussed  since 2021. The concept was amusingly floated by Vitalik Buterin , the co-founder of Ethereum, and following debates resulted in hints of a PoS transition in Dogecoin’s roadmap.

“The Foundation are also working with Vitalik (Founder of the Ethereum blockchain) on crafting a uniquely Doge proposal for a ‘Community Staking’ version of PoS that will allow everyone, not just the big players to participate in a way that rewards them for their contribution to running the network, and at the same time gives back to the whole community through charitable causes,” the Dogecoin Foundation then said .

However, over two years later, the deployment of PoS is still a contentious issue rather than a practical reality.

Elon Musk and Mark Cuban helped DOGE gain popularity, which led to the token’s value reaching an all-time high of $0.73 in May 2021. To everyone’s amusement, Musk then referred to himself as the “Dogefather”.

Also, let’s not forget that Musk never really liked Bitcoin’s PoW because it is energy-consuming and favors those who have the most advanced or powerful equipment.

Bitcoin proponents regard PoW as the one and only way to achieve decentralization, while the mining consensus disagreement has fractured the cryptocurrency community. A lot of individuals, including Dorsey, have also claimed that PoS is riskier and more centralized than PoW.

Instead, Vitalik Buterin said he would assist Dogecoin in achieving its objective of implementing a new consensus process. However, how precisely could Vitalik Buterin assisting Dogecoin’s transition to proof-of-stake?

One of the most well-known figures in the cryptocurrency community, Vitalik, also serves as an adviser to The Dogecoin Foundation, the non-profit organization that created the meme coin.

The Ethereum blockchain, led by Vitalik, has been the front-runner in settling the ongoing dispute between proof-of-work and proof-of-stake and replacing PoW with the more effective PoS.

Vitalik is the ideal individual to lead Dogecoin through the difficult transition because he is in charge of overseeing the intricate multi-step procedure for Ethereum.

Benefits of the Proof-of-Stake (PoS) Mechanism for Dogecoin

  • Better energy efficiency: Without cryptographic riddles, energy-intensive equipment is not necessary.
  • Lower entrance barriers: In an ecosystem without expensive machinery, more people will have the chance to build new blocks.
  • More decentralization: As the number of nodes steadily rises, more decentralization occurs, which increases security.
  • Better Scalability: In PoW networks, structural problems make noticeable scaling nearly difficult. With the help of sharding and other techniques, Proof of Stake protocols effectively scale up a blockchain.

How Dogecoin PoS Alter the Rules?

The inherent drawbacks of proof-of-work methods became increasingly obvious as Dogecoin gained popularity and a growing number of DOGE holders. Dogecoin node operating costs deter additional validators.

Then, PoW consensus processes have always been doomed by high power consumption, which has led to scathing condemnation from environmentalists and the possibility of regulatory intervention from the government.

These changes spurred Dogecoin to search for alternate consensus mechanisms. With Vitalik Buterin’s backing, Dogecoin could embrace PoS as soon as it becomes a practical option.

The excessive energy consumption of the PoW consensus protocol always draws negative attention and ramifications at a time when the world is facing an energy crisis and everyone is concerned about pollution-induced climate change. Moving to PoS in this situation would make sense.

Dogecoin’s transition from proof-of-work to proof-of-stake would enable anyone staking a sufficient amount of DOGE to participate in the network’s operation, removing the centralized control of mining from organized mining cartels, which has become inextricably linked to proof-of-work protocols.

The proof-of-work methods have received a lot of flak for their sluggish transaction output and high energy consumption, and there are currently few adopters in the crypto world. A growing number of systems use proof-of-stake, and Dogecoin could join the trend as well.

The proof-of-stake consensus mechanism in Dogecoin would probably improve community participation and governance. Understanding the reasoning and logic behind the change would be made easier by conducting a thorough comparison of proof-of-work and proof-of-stake.

What Musk Has To Do With It?

The decision by Elon Musk to forbid Tesla  from taking Bitcoin as payment back in 2021 has renewed interest in the environmental effects of cryptocurrencies.

Tesla has stopped accepting Bitcoin for vehicle purchases, according to Musk, who then expressed his worries about the “rapidly increasing use of fossil fuels for Bitcoin mining.”

He made reference to statistics from Cambridge University academics showing that the amount of electricity used by Bitcoin has increased this year.

He then announced Tesla is looking at other cryptocurrencies that require less energy/transaction than 1% of Bitcoin. A year after, the company started accepting Doge  for some merchandise. From then, Musk is a Doge advocate and is often pumping Doge’s price through his tweets.

The Future Route

In the early days of cryptocurrencies, when anyone could generate coins using only a regular computer, PoW was an alluring consensus technique.

Proof-of-work protocols, on the other hand, were an outmoded technology in the modern period due to the emergence of expensive, energy-hungry mining equipment and scaling problems with the rising popularity of digital coins. The fact that projects started seeking for alternatives is not surprising.

The switch from PoW to PoS in Dogecoin would not be very noteworthy. Instead, it would be simply what other projects, led by Ethereum, have been doing. Dogecoin’s proof-of-stake strategy could end the protocol’s typical PoW problems and usher in a new era of PoS-based protocols.