Dogecoin can become a global Internet currency: Robinhood CEO

In a recent series of tweets, Robinhood CEO Vlad Tenev shared his thoughts on whether Dogecoin(DOGE) could indeed become the future currency of the internet.

First, according to Tenev, transaction fees should be as low as possible. He believes that we are almost there. As of the protocol’s update to version 1.14.5 last November, a typical transaction fee on the Robinhood platform was approximately $ 0.003. This compares to 1−3% fees charged by major card networks.

Secondly, the blockchain time (the amount of time it takes to add successive blocks to the chain and verify the transaction) should be short enough that the transaction can be recorded in the next block in less time than it takes to pay at a merchant’s terminal.

According to the CEO, miners should not create too many competing chains and spend too much energy on reaching a consensus. The current blocking time for Doge is 1 minute. This is too much, because for online payments, a ten-second blocking time would be more acceptable, as it would be less than the average time taken to complete a debit card transaction.

Dogecoin has a throughput of approximately 40 transactions per second (tps) with a block size of 1 MB and a block time of one minute.

The Visa network, on the other hand, can accommodate 65,000 tps. Doge would have to be able to significantly outperform Visa, which would require a 10,000-fold increase in bandwidth. Fortunately, increasing the block size limit is a simple solution.

How exactly? By increasing the block size. In the near future, a move to a 1GB block size (and later 10GB) will provide all the bandwidth the global currency needs. Tenev argues that L2 solutions (the so-called «leyers» — subnetwork chains) are not needed to solve this problem, because without them, Dogecoin will leave Visa far behind.

Are there any critics of this plan? Of course there are!

The main criticism of Doge’s hegemony is that it is inflationary and has an indefinite supply, unlike Bitcoin, which has a maximum supply of 21 million coins. Every year, 5 billion new Doge are created. This means a current inflation rate of 5%, which is even lower than the US dollar (8.5%).

In addition, due to the fixed issue, inflation actually decreases over time, and in a few decades it will be below 2%.

Tenev is confident that Dogecoin developers should focus on one thing: developing a good procedure to gradually improve the block size.

His series of tweets has attracted the interest of many crypto enthusiasts. He received responses from Dogecoin founder Billy Marcusas well as Dogecoin supporter and billionaire Elon Musk.

this thread is good https://t.co/6Pr0JHGuGi

— Shibetoshi Nakamoto (@BillyM2k) April 14, 2022

Musk said «As I said», meaning that he has long been a supporter of Dogecoin becoming the currency of the Internet.

Exactly, block size & time should keep pace with the rest of the Internet

— Elon Musk (@elonmusk) April 14, 2022

At the time of writing, DOGE was trading at $ 0.144 890.