The CEO of popular stock and cryptocurrency trading platform Robinhood, has shared his thoughts on Dogecoin (DOGE). He notes that the meme coin could become the native currency of the Internet.
Plan ready, time to implement
Vladimir Tenev shared on Twitter with his 200,000 followers a scenario that could give Dogecoin a very wide range of possibilities. As he writes in the introduction of his monologue:
“Can Doge really be the future currency of the Internet and the people? As we added the ability to send/receive DOGE in Robinhood, I wondered what that would mean.”
He points primarily to the need for low transaction fees that would make such adoption meaningful. He notes that this aspect is already in place for DOGE:
“First, transaction fees must be negligible. We have already achieved this. Since the 1.14.5 update last November, typical transaction fees are ~$0.003 – which you can check on the RobinhoodApp site – compared to 1-3% network fees charged by major card networks.”
However, the shortcomings of the dog coin have not escaped him. Network bandwidth plays a major role here:
“Currently, with a block size of 1 MB and a block duration of 1 minute, Dogecoin’s throughput is about 40 transactions per second (tps).
He compares it to other known payment methods:
“By comparison, Visa’s network can theoretically handle 65,000 tps. Doge would have to be able to significantly outperform Visa, which means increasing bandwidth at least 10000 times. Fortunately, this problem can be easily solved by simply increasing the block size limit.”
In further words Vladimir Tenev calls for further development of Dogecoin, increasing its blocks to 1 GB and further up to 10 GB. He points out that this operation will not require a second layer.
He also addressed critics of Dogecoin, who often point to its infinite supply and the 5 billion new DOGEs created every year. According to Tenev’s calculations, the inflation rate in this case is close to 5%, which is currently lower than the inflation rate of the US dollar.