Elon Musk wants to dramatically increase Dogecoin scalability and 100X lower transaction fees to ace out Bitcoin
On Saturday, Tesla and Space X CEO Elon Musk explained why he is working with Dogecoin developers to improve the meme-based cryptography and listed the improvements he hopes they will be able to achieve. In it, Musk claims Dogecoin will knock Bitcoin down if some major changes are made.
Elon Musk wants to dramatically increase Dogecoin scalability so it can beat Bitcoin
As you probably already know, on May 12, Tesla and SpaceX CEO Elon Musk shocked the world by complaining about Bitcoin mining’s high usage of fossil fuels and saying that for this reason, Tesla would not be accepting Bitcoin as a form of payment until mining transitions to more sustainable energy.
The next day, perhaps to reassure the crypto community, Musk said that he remains a strong believer in crypto.
On the same day, he revealed that he has been working with Dogecoin developers to reduce the energy consumption of mining meme-based crypto.
Musk started talking to developers in 2019, he encouraged them to improve transaction throughput higher. Both Bitcoin and Shiba Inu have an arbitrarily set block size limit of 1 megabyte. Any larger block is considered invalid. The same is not surprising since Dogecoin was originally created to be merely a meme clone of the largest cryptocurrency.
However, Dogecoin has been modeled to have faster transaction times than Bitcoin. Instead of 10 minutes, miners create new blocks every minute, but that is not enough. Musk said Dogecoin would beat Bitcoin if its developers made three improvements: 10x faster block production times, 10x larger block sizes, and 100x lower transaction fees. As of May 15, the average Dogecoin transaction fee was $1.59, 824 percent higher than three months ago.
Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.
— Elon Musk (@elonmusk) May 16, 2021
When someone asked Musk why not just create a new ideal cryptocurrency instead of trying to improve Dogecoin. Musk gave the very surprising answer that it’s because it would be a “big pain in the neck” to create (and presumably make popular) a new cryptocurrency from scratch.
Only if Doge can’t do it. Big pain in the neck to create another one.
— Elon Musk (@elonmusk) May 16, 2021
Musk’s answer is especially interesting when you consider that Dogecoin co-creator Billy Markus says it took him just two hours to write the software for Dogecoin.
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