A slew of projects has been taking place in the crypto industry since the beginning of the year. The much-talked-about Dogecoin-Ethereum Bridge will become part of other projects launched this year.
According to the platform behind the development of the initiative, Blue Pepper, the new scaling solution is expected to be live later in the year.
Introducing the Dogecoin-Ethereum Bridge
The new project is a bi-directional technology that permits the transfer of DOGE on the Dogecoin and Ethereum blockchain networks. Users can then utilize their DOGE tokens on the Ethereum network like any other ETH-compatible coin.
They can then use the digital asset to invest in smart contracts on DeFi platforms or purchase NFTs on the marketplace. Moreover, the decentralized autonomous organization (DAO) members who will manage the protocol include the Dogecoin Foundation, MyDoge, Blue Pepper, and BitGo.
The Doge community would benefit from the project as they can use the meme coin to stake, lend, and trade other assets. Despite being an unofficial Dogecoin project, Dogecoin co-founder Billy Markus has thrown his support behind the initiative.
The software developer hopes this will signal the beginning of DOGE’s entrance into the decentralized finance ecosystem. However, Markus noted that he would not be part of any DeFi-related activities on the platform.
The Blue Pepper developers are working with the core Doge developers to ascertain the best way to operate the protocol efficiently.
New Bridge, New Problem
A project of this importance is sure to come with challenges. Security of the protocol is of utmost importance, and developers are putting more effort into forestalling any possible breach.
Meanwhile, developers have identified the Solidity codebase and many attack vectors as loopholes hackers can exploit. Over the past couple of weeks, blockchain-based bridges have been the targets of hackers who have pillaged billions of dollars worth of digital assets from several platforms.
The North Korean Lazarus hacker group is the most daring of the attackers. The group is responsible for some of the most significant hacking incidents recently gracing the crypto industry. In addition, the group was responsible for draining $625 million worth of assets from Axie Infinity early in the year.
Another data set from the on-chain analytic company, Chainalysis shows that attacks on blockchain bridges will account for most stolen crypto funds in 2022.
The industry has experienced an increased surge in criminal attacks, leading some to question blockchain technology’s capability to secure digital assets. Critics point to the several attacks on blockchain platforms because technology has no proof against hacking.
Another challenge faced by the developers is the high gas fees on the Ethereum network and the reluctance of key actors to participate in the project. Billy Markus has shown his unwillingness to be part of the DeFi-based protocol, even as he praises the motive behind the initiative.
The Dogecoin-Ethereum Bridge may turn out to be the genesis for both networks’ growth despite the lack of participation from others.