• Sat. Mar 2nd, 2024

Elon Musk Calls BTC And ETH Slow As He Defends DOGE Scaling Efforts

Jul 14, 2021

The meme coin DOGE’s (Dogecoin) efforts on social media for scaling have been defended by Elon Musk as he states that both the Ethereum and Bitcoin are slow at the base layer. He proposed an alternative framework for DOGE. He replied to Mark Wallace (a YouTuber to have expressed enthusiasm for the next update of DOGE) by mentioning that both (ETH) Ether and (BTC) Bitcoin are running with the traction of a base layer (which is slow in operation but high in costs) although seeking for multilayer transaction structures like Lightning and other solutions for layer-two scaling network.

Musk then focused the attention toward the Dogecoin advancement, disclosing that it is advantageous to maximize the transaction rates of the base layer and to minimize the costs of transactions through the utilization of crypto exchanges like de facto for their secondary layer.

A notable quantity of transactions is internally processed by the trading platforms of crypto without any need to move funds on the respective blockchain as it assists in bypassing the clogging of blockchain networks. However, they are considered as the third parties centralizing the cryptocurrencies and may harm the decentralization of a cryptocurrency.

To meet the orders from law enforcement, a crypto exchange may freeze the funds of a consumer, whereas, on the BTC blockchain, no one can freeze the funds. Rather, the exchanges can only block the transactions made by a specific address and freeze respective funds. Contrary to that, a blockchain consumer can transfer funds on blockchain freely without taking help from an exchange.

Recently, Musk has remarked the support for Dogecoin manufacturer Patrick Lodder’s proposal to minimize the fees on crypto transactions for keeping it competitive. Lodder discussed that the presently recommended fee for one unit of DOGE has become abrupt as compared with the anticipated value of its transaction, and it is unnecessarily interfering with the transactions that are on-chain while the transactions should be economical than on Litecoin or Bitcoin. He added that the price of Dogecoin is even crossing the aforementioned coins at times.

The value of Dogecoin has been spiking throughout the recent year following the tweets of various celebrities such as Snoop Dogg, Mark Cuban (the billionaire), Gene Simmons (a Kiss singer), and Elon Musk, who have been tweeting jokes regarding DOGE for inflaming its growth.

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