The much anticipated Dogecoin and Ethereum merger took on an elevated approach as Ethereum’s co-founder Vitalik Buterin agreed to discuss with industry experts about its possibility. The virtual event which was held live on Twitch featured experts such as the host Soma Green, Ross Nicholl, and Oscar Guindzberg.
Interestingly, the DOGE/ETH deliberation has been in existence for quite some time after Buterin attested his appreciation for the development. The merger would cause DOGE to become a more diversified asset. Primarily, the bridge would create a multi-channel for Dogecoin across the Ethereum ecosystem and its native blockchain. Investors can send DOGE to the ETH blockchain which would transform them to DOGE tokens to encourage interactions with DeFi exchanges.
The motive of the bridge is to trigger efficiency in Dogecoin transactions. The cryptocurrency which has become a favorite in the crypto market does not boast of speedy transactions yet. However, the novel integration would change the narrative so DOGE can accelerate its operations per second. As a result of this, the adoption of cryptocurrency which has taken a rise recently could even go higher.
Highlights of the DOGE/ETH Merger Discussion
True to the initial Twitter announcement by @TDogewhisperer, the question and answer session was held on July 28th. Buterin gave a brief intro to the concept, suggesting sharing as a useful technique to increase the transaction speed of the Ethereum blockchain. According to him, “the only solution to this (scalability problems) is to improve the technology so that the blockchain can process more transactions, and that is what sharding does”.
Dogecoin developer Ross Nicholl reiterated that the merger would strengthen both blockchains and improve the overall user experience. The Ethereum co-founder also mentioned that the merger might increase transactions per second to about a hundred thousand which is a massive improvement.
When asked about the Ethereum upgrade to a proof-of-stake consensus, Buterin assured that it won’t affect activities on the ETH network. In the case of transactions made just before the upgrade, he said that it’d move to the new protocol without affecting the transaction.
Future Projections of the DOGE/ETH Bridge
The deliberation of a bridge between Dogecoin and Ethereum began in 2019 but died down during the crypto winter. It was eventually reawakened by Elon Musk’s proposal for a merger with Ethereum in June 2021.
Dogecoin would benefit largely from the bridge as its use case is now much more evident. Merging with a personality like Vitalik Buterin, the demand for the cryptocurrency could go over the roof. Due to the locked liquidity on DeFi exchanges, the value of Dogecoin would sour. We recently reported that DOGE holders have surpassed Ethereum and Bitcoin holders in Q2.
DOGE isn’t the only beneficiary of this merger. The entry of a popular asset like Dogecoin would bring in newer investors into Ethereum’s DeFi ecosystem. Dogecoin holders can now participate in DeFi events, trade Non-Fungible Tokens, and even exert governance powers on several fronts. Who knows, this formidable combo from these crypto giants might see Ethereum sour past Bitcoin in the long run.