As BTC and ETH Pursue Multilayer Schemes, Elon Musk Says 'There's Merit to Doge Maximizing the Base Layer' – Bitcoin News


Bitcoin News 09 July, 2021 - 01:32pm 25 views

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Musk, the self-proclaimed technoking of Tesla who was once voted dogecoin's CEO in a tongue-in-cheek Twitter poll, warned over limitations he sees with bitcoin and ethereum, branding them "slow" with "high" costs.

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"There is merit [in my opinion] to doge maximizing base layer transaction rate and minimizing transaction cost with exchanges acting as the de facto secondary layer," Musk said via Twitter, replying to dogecoin investor and YouTuber Matt Wallace.

"[Bitcoin and ethereum] are pursuing a multilayer transaction system, but base layer transaction rate is slow and transaction cost is high," Musk added.

It's hoped that bitcoin, via its payments-focused lightning network and a recent upgrade called taproot, will be able to resolve some of its scaling issues, while etheruem, the second-largest cryptocurrency after bitcoin, is in the midst of a long-awaited upgrade that's not expected to be completed for years.

Musk was replying to a tweet by Wallace that claimed "the dogecoin update is coming soon," and that it "will position doge perfectly to become one of the most used currencies in the world."

In May, Musk proposed a dogecoin upgrade that he claimed is "needed [for dogecoin] to become the currency of Earth" and beat bitcoin "hands down."

The dogecoin price has surged this year, initially riding January's meme stock wave but subsequently developing a haphazard community somewhat led by Musk who envision it eventually competing with the likes of bitcoin and ethereum.

Musk, whose irreverent attitude to bitcoin and cryptocurrencies on Twitter has alienated much of the bitcoin community, has previously said all of his dogecoin related comments shouldn't be taken seriously but has since ramped up his support of it—issuing calls for developer support and promising to put a "literal dogecoin on the literal moon" via his rocket company SpaceX.

Tesla continues to hold the more than $1 billion worth of bitcoin it bought near the beginning of the year—though that investment is now thought to be underwater—but Musk has also indicated he personally holds dogecoin.

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The dogecoin price, up over 4,000% on this time last year, has fallen sharply in recent weeks as fickle investors on the lookout for the next hot digital asset have lost interest in dogecoin.

The price of dogecoin failed to move in the immediate aftermath of Musk's latest doge tweet, a marked difference from earlier this year when Musk's early morning and late night tweets regularly moved the market double-digit percentages.

Over the last month, the dogecoin price has lost some 30% with its sell-off accelerating this past week even as a new Tiger King-branded cryptocurrency added 1,000% due to support from the likes of Wallace who said last weekend he was buying the little-known token.

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Dogecoin Upgrade: Much Change, Much Wow

TheStreet 09 July, 2021 - 02:37pm

The new upgrades for Dogecoin include two separate proposals from developer Patrick Lodder. The first proposal was made on March 14th and will add some features similar to Bitcoin that remove certain bugs and open the chain to more possibilities. 

The second, and very recent proposal, includes a greatly reduced transaction fee that will lower the average fee by 100x, among other things. 

The cumulative update will bring some features that exist on Bitcoin to Dogecoin, including segregated witness (SegWit), which lowers the threat of transaction malleability and increases block capacity. 

In Bitcoin's past, transaction malleability was a bug where someone could alter codes that identified transactions in a way that made it impossible to tell if a withdrawal had occurred. Using the small bug, a user could effectively request a withdrawal, change the code so that this action couldn't be seen, and then request another withdrawal, causing an exchange to send Bitcoin out of its own pocket, doubling that user's holdings.

While many exchanges were aware of this and had implemented solutions on the exchange level to halt the problem, a less technically equipped exchange known as Mt. Gox was not, which partially led to its infamous downfall. 

Aside from a reduction in transaction malleability, SegWit also increases the storage capacity of blocks by separating parts of data in a transaction. With SegWit, the 'witness,' which contains the data needed to check a transaction's validity, is separated from the rest, allowing more inputs or transactions per block while still maintaining valid transactions.

Dogecoin will also be getting what is called 'CheckSequenceVerify,' (CSV), which allows Bitcoin to enable payment channels like the Lightning Network that greatly scale its ability to handle higher transaction volumes.

The combination of SegWit and CSV allowed for the possibility for the Lightning Network on Bitcoin, so this upgrade opens up many new possibilities for Dogecoin.

Aside from a huge reduction in average fees, the more recent update proposal will lower the minimum relay fee or the minimum fee a transaction must pay for a node to relay the transaction across the network. Another factor that will change is Dogecoin's dust relay transaction fee. 

If someone tries to send a minuscule amount of Dogecoin that has a value lower than this set fee, it is considered 'dust.' The higher the dust relay transaction fee, the harder it is to send tiny amounts of Dogecoin. This can become problematic should the value of a coin greatly increase. If its value were to increase, what was previously considered 'dust' may now actually have a higher value relative to dollars. The proposal aims to decrease the dust relay transaction fee. Should Dogecoin's value increase in the future, this will enable easier microtransactions.

In total, Dogecoin's new updates will lower transactions fees, lower dust limits, slightly increase blocksize (scale transactions), reduce the potential for transaction malleability and allow for payment channels similar to the ones seen with Bitcoin's Lightning Network.

So, Dogecoin is getting a much-needed facelift that brings it closer to the level of Bitcoin, at least with its more basic functions like SegWit. Dogecoin is still lightyears behind in terms of projects being built on its network, but these updates will make the network more functional and unlock potentially more interesting capabilities for the future. In general, these changes are beneficial for the memecoin that has typically been thought of as a useless satire on the industry.

Elon Musk Slams Bitcoin’s Underlying Technology

Futurism 09 July, 2021 - 02:03pm

The longtime crypto advocate, who earlier this year said that he would take a salary in Bitcoin, has more recently turned into one of the cryptocurrency’s most prominent critics. Today he went even further, arguing that Bitcoin and Ethereum are too slow and expensive to scale, especially compared to Dogecoin.

“BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high,” Musk tweeted early Friday morning. “There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.”

Already, Musk’s tweet has drawn the ire of Bitcoin and Ethereum fans, who say he’s making a baseless criticism of the widely-adopted cryptocurrencies. As Crypto Briefing notes, the cost and speed of the Bitcoin blockchain has been a problem, historically, but recent upgrades have improved both.

Musk’s stances on crypto have bounced around quite a bit over the last few months. Even though he’s been harsh on Bitcoin recently, Tesla still owns quite a bit of the crypto — so he may well come around to it again down the road.

READ MORE: Elon Musk Slams Bitcoin, Ethereum Scalability Issues [Crypto Briefing]

More on Elon Musk: Dogecoin Spikes After Elon Tweets About Helping Its Developers

Why Dogecoin Was Climbing Today | The Motley Fool

Motley Fool 09 July, 2021 - 12:03pm

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Dogecoin (CRYPTO:DOGE), the Shiba Inu-themed cryptocurrency, was climbing today, outpacing Bitcoin and Ethereum as Dogecoin bulls took advantage of the recent sell-off. 

The crypto coin's price spiked overnight on heavy volume, potentially indicating a large purchase in China, as a significant portion of Dogecoin mining is done there and much of the currency is owned by just a few "whales," or major players who control the market.

As of 11:05 a.m. EDT, Dogecoin was up 5.5% over the last 24 hours in its highest-volume trading day since June.

There was no major news pushing Dogecoin higher today. However, a couple of recent items point to reasons to be bullish about the cryptocurrency. 

First, U.S. Congressman Barry Moore, from Alabama, declared investments in several cryptocurrencies yesterday, including Dogecoin. While that news shouldn't have any direct impact on legislation on cryptocurrency, it shows that Dogecoin owners are widespread. Moore purchased between $1,001 and $15,000 of Dogecoin on June 13 and also bought Ethereum and Cardano.  

Another report that had Dogecoin bulls excited was Visa's announcement Wednesday that transactions on crypto-linked Visa cards totaled more than $1 billion in the first half of the year. The credit card giant also said that it would partner with the top 50 cryptocurrency platforms to launch card programs that make it easy to convert and spend digital currency at 70 million merchants worldwide.  

That announcement certainly looks like good news for proponents of Dogecoin, who are trying to gain increased acceptance for the currency with merchants. 

Cryptocurrencies tend to trade on speculation, fleeting news items, emotions, and technicals, and that is especially true with Dogecoin, which is not considered to be the check on inflation that Bitcoin is, nor is it widely used in transactions for NFTs and other such items, as Ethereum is.

Still, Dogecoin has clearly found an audience, and the more interest there is in the token, the more likely it is that it will gain real-world utility and scale. A congressman's buying the coin and Visa's increasing push into crypto are certainly favorable developments for Dogecoin's future. 

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Elon Musk Blasts Bitcoin and Ethereum Over Scalability Issues

Entrepreneur 09 July, 2021 - 10:50am

Elon Musk took to Twitter to slam bitcoin and ethereum over their high transaction rates and fees, while underlining the “merit” of using dogecoin as a base layer blockchain. This was in response to dogecoin investor and YouTuber Matt Wallace.

Writing to dogecoin influencer Matt Wallace on Twitter, Musk said that bitcoin and ethereum are “pursuing a multilayer transaction system, but base layer transaction rate is slow and transaction cost is high,” as reported by Forbes.

Several crypto enthusiasts replied to Musk in the way of criticism, raising questions about how exchanges would act as a second layer for dogecoin, while others urged Musk to research scalability solutions for bitcoin and ethereum.

Anthony Sassano, a prominent Ethereum supporter, joked, “Pack it up everyone –Elon solved blockchain scalability.” Joel Heyman, a feverish bitcoin supporter added “I can’t believe people listen to this."

In March this year, Ethereum’s fees skyrocketed as well as its network congestion, while reaching an all-time fee value of $42 after stabilizing within the $16-$20 range, squeezing users who were looking to make small transactions on the platform.

“Present infrastructure of cryptocurrency networks will need to be expanded in a suitable way to absorb increasing transaction volumes along with an increasing number of users,” asserts digital investment platform Bitpanda.

Lightning Network has offered big improvements to bitcoin and ethereum transaction times and costs.

However, according to Cointelegraph regarding Lightning Network, “there is no telling what will happen if the payment will have to take too convoluted a route. Surely, if your transaction will need to go through dozens of intermediate channels, the fees will add up.”

With analysts predicting it could achieve a 40% price gain on bitcoin, ethereum just recently announced its London fork and already has miners and stakers gasping for the big answer: will this be a long-haul solution to resolve Ethereum’s scalability problems?

According to Abdelhamid Bakhta, one of the main authors of EIP-1559, misinformation about the upcoming London upgrade is widespread.

He emphasizes that EIP-1559 is not being introduced to decrease the current congestion and high fees but rather, it seeks to introduce the concept of “block elasticity,” which means that the theoretical maximum capacity of the platform is doubled.

So, he says, the short answer is “no,” as the upgrade “will not be the long-term solution that Ethereum needs to resolve its scalability problems.” Still, the growing introduction of layer 2 solutions will certainly alleviate fee and congestion issues in the network, he asserts.

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