This Bitcoin Startup Has an Uncommon Plan to Enhance Dogecoin

In short

  • Crypto agency VeriBlock has proposed utilizing Bitcoin transactions to again up Dogecoin transactions by way of a “proof-of-proof” mannequin.
  • VeriBlock sees it as safety towards 51% majority assaults and likewise additional justification for Bitcoin mining’s sizable vitality footprint.

Bitcoin’s energy-intensive proof-of-work mining mannequin—during which highly effective computer systems resolve superior equations within the hopes of incomes BTC rewards—has been below elevated scrutiny not too long ago, following electrical automobile maker Tesla’s choice to cease accepting the cryptocurrency.

Tesla CEO Elon Musk is aiming to extend the usage of renewable vitality in mining by way of his Bitcoin Mining Council effort with MicroStrategy CEO Michael Saylor and a gaggle of North American mining companies, and is open to embracing different, extra eco-friendly cash instead of Bitcoin.

However The VeriBlock Basis has one other potential answer to Bitcoin’s vitality dilemma that would in the end assist different blockchains… notably the topic of Musk’s many tweeted memes.

This week, the nonprofit VeriBlock Basis—recently launched by the for-profit VeriBlock agency—introduced plans to make use of the ability of Bitcoin to assist safe the Dogecoin community by means of a safety expertise it calls “proof-of-proof.” Primarily, its proof-of-proof consensus protocol piggybacks one blockchain onto one other, successfully backing up that blockchain’s transactions to Bitcoin’s personal distributed ledger secured by a proof-of-work mannequin.

On this case, VeriBlock goals to carry its expertise to Dogecoin, the meme-inspired “joke” cryptocurrency that has surged into the highest 10 cash by market cap in 2021. The agency is working to carry proof-of-proof to the Dogecoin codebase and display its worth to the DOGE neighborhood, together with by showcasing the potential risks of a 51% majority assault.

A 51% assault occurs when a miner or group of miners controls sufficient of a blockchain’s hashrate to hold out double-spend assaults—or spending cash twice with out the community realizing. Ethereum Traditional and Bitcoin Money are prime examples of blockchains that skilled 51% majority assaults in 2020.

“Proof-of-proof introduces a brand new type of light-weight and inclusive mining the place anybody can do PoP ‘safety transactions’ on behalf of a blockchain like DOGE, which adopts our expertise in trade for mining rewards, securing the blockchain to Bitcoin,” VeriBlock co-founder and Chief Technical Officer Maxwell Sanchez instructed Decrypt.

In accordance with Sanchez, the proposed mannequin would see Dogecoin transactions having confirmations on Bitcoin, enabling “Bitcoin finality” for exchanges making Dogecoin deposits. That further layer of safety may present peace of thoughts towards potential 51% majority assaults. 

Dogecoin at the moment helps a “shared safety mannequin” by means of merged mining with Litecoin, which lets miners faucet into rewards on each networks concurrently. In accordance with VeriBlock, this makes Dogecoin an excellent candidate to undertake its expertise and profit from Bitcoin’s safe community as a substitute, albeit by separating from Litecoin. Sanchez means that the present merged mining mannequin places each Dogecoin and Litecoin in danger from assaults.

However how does this profit Bitcoin? Bitcoin’s ample vitality footprint is already in play as a result of huge, distributed, and worthwhile mining equipment, and VeriBlock’s expertise may give extra function to Bitcoin through the use of transactions to again up different blockchain platforms. In VeriBlock’s view, it might primarily amortize the prevailing vitality expenditure through the use of it to safe extra blockchains.

“Proper now, Bitcoin can deal with someplace round seven transactions per second, but when it secured 100 different blockchains with its proof-of-work [model], then the environmental value per transaction can be 100x decrease,” he instructed Decrypt, suggesting potential grand plans past bringing VeriBlock’s proof-of-proof mannequin to Dogecoin alone.

“We imagine Bitcoin’s proof-of-work is definitely the world’s most eco-friendly and safe type of digital proof, and it transcends simply monetary infrastructure too,” he added. “It simply is not being correctly utilized but as a result of the ecosystem remains to be nascent, and lots of the applied sciences that may higher make the most of Bitcoin’s unimaginable safety (like PoP) are nonetheless being developed or have not achieved important adoption mass but.”

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