Robinhood CEO Vladimir Tenev believes that Dogecoin (DOGE-USD) could become the everyday “internet currency”. According to the head of Robinhood, all it takes is a few improvements that can turn the meme currency into a faster and even cheaper payment currency. He described his thinking through from a topic on twitterproviding some suggestions on what Dogecoin developers could implement to make DOGE the “people’s currency”.
can #Doge truly be the future currency of the Internet and the people? As we added the ability to send/receive DOGE on Robinhood, I’ve been thinking about what that would take. — VLAD (@vladtenev) April 14, 2022
Increase block size, reduce block time
Tenev says that Dogecoin transaction fees are already “too small” after last November’s 1.14.5 update. The network’s average transaction fee of $0.003 is much lower than the 3% charged by major card payment providers. In this case, he proposes that what needs improvement is the size and blocking time of the DOGE. By doing so, he notes, Dogecoin can increase its total transfer rate to levels currently achievable by Visa. Tenev points out that as it stands, Dogecoin’s throughput is around 40 transactions per second (TPS). True, this is due to the cryptocurrency’s 1MB block size and 1-minute block time. In comparison, Visa can handle up to 65,000 TPS. To beat VISA, Dogecoin needs to increase its throughput 10,000 times. It looks like it might be a huge task. However, the Robinhood executive believes that DOGE developers can easily solve this by increasing the block size. “Moving to a 1GB block size limit (and after 10GB) would provide all the throughput that a global currency would need for the foreseeable future. L2 solutions are not needed to solve this problem,” he noted.
How about adopting a fixed money supply model?
Dogecoin developers should also explore how to make Dogecoin less inflationary as it currently is, he added. This, he said, could be done by adopting a finite supply, much like Bitcoin’s (BTC) 21 million cap. If this were the case, Dogecoin’s inflation rate could reduce over time. The current supply of 132 billion DOGE results in an inflation rate above 5%. Tenev opines that having a fixed supply could reduce that to 2%. Some of the suggestions have already drawn criticism of the CT, especially around increasing block size likely at the expense of decentralization.
But the exchange is…
Tenev admits that a 10GB block size might require more sophisticated hardware from miners if they want to run a full node, something that might deter some enthusiasts from participating in network security. This, according to some observers, is unacceptable, as it would lead to a more centralized network. tenev suggests that this could be the trade-off that Dogecoin developers should keep in mind if they choose to consider your opinion.
It’s definitely NOT a good tradeoff. If you want independent decentralized money you need to be as robust as possible. You’re defending the network against well funded and connected massive entities. If you make such tradeoffs in this battle, you lost before you enter the ring. — Bitcoin LightningNetwork+ (@BTC_LN) April 15, 2022