Elon Musk criticized the Bitcoin and Ethereum blockchains for slow processing of transactions and high transaction costs. So he responded to a tweet from YouTube blogger Matt Wallace about the upcoming Dogecoin (DOGE) cryptocurrency update.
BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high.
There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.
— Elon Musk (@elonmusk) July 9, 2021
Wallace said that with the update, Dogecoin will become “one of the most widely used cryptocurrencies in the world.” The Tesla founder agreed with this opinion.
“BTC and ETH use a multi-tiered transaction system, but the transaction rate at the basic level is slow and the cost is high. In my opinion, there is an advantage that DOGE maximizes transaction speed at a basic level and minimizes transaction costs with exchanges acting de facto as a second tier, ”he wrote.
Machine learning engineer Pranay Patole noted that Dogecoin is already 15 times faster than bitcoin, and that reducing network fees and increasing block size are easy to achieve. According to him, the most difficult task is to increase the speed of generating new blocks tenfold.
Doge is already 15x faster than Bitcoin.
Fee drop is easy to achieve.
Block size increase is easy to achieve.
Block time speed up by 10x is the hardest part.
— Pranay Pathole (@PPathole) July 9, 2021
The developer Udi Wertheimer proposed to implement the SegWit update solutions for the Bitcoin network in Dogecoin, which are a prerequisite for using the Lightning Network.
actually reasonable imo, i hope i don’t get cancelled
that said why not migrate segwit from bitcoin which is a prerequisite for lightning. then both options can compete on doge, seems like easy win
— Udi Wertheimer (@udiWertheimer) July 9, 2021
The Block analyst Larry Cermak pointed out Musk’s mistake, noting that cryptocurrency exchanges never worked as second-tier solutions. Wertheimer stated that they have been doing this “for a decade.”
exchanges have worked as de facto L2s for a decade lmao
— Udi Wertheimer (@udiWertheimer) July 9, 2021
Chermak stressed that such platforms cannot be considered second-tier networks, since the user faces the risk of interacting with a third party, and also loses privacy. In his opinion, bitcoin exchanges are more like “highly specialized sidechains”.
You could argue they are some sort of a narrow use case sidechain where you make a lot of compromises but an L2? no sir
— Larry Cermak (@lawmaster) July 9, 2021
The vast majority of economic activity is linked to exchanges, Wertheimer said. He stated that such platforms have developed an effective method of mutual settlements, and the threat of loss of confidentiality and the risks associated with the storage of assets are present in other second-tier solutions.
this sounds like a terminology issue
people have considered exchanges and banks to be a “layer two” since the earliest days of bitcointalk. i was not informed of the definition being changed
— Udi Wertheimer (@udiWertheimer) July 9, 2021
“It’s like a terminology question. People have considered exchanges and banks as “second tier” since the earliest days of bitcointalk. Nobody told me that the definition was changed. In any case, what Elon is saying is pretty clear. There is no need for fancy experiments if everyone uses custody anyway. He is 100% right, ”concluded Wertheimer.
On his page, Chermak wrote that Musk understands little about the subject of the conversation, although he truly believes in what he says.
What’s sad is that I initially really believed that Elon was informed on these topics (why wouldn’t you be after deploying billions?!). But as time goes and he keeps sharing these nonsensical takes, I’m increasingly convinced he’s just clueless and not even trolling.
— Larry Cermak (@lawmaster) July 9, 2021
“Sadly, at first I really believed that Elon was aware of these issues (why not, after he invested billions ?!). But over time, as he continues to share meaningless reasoning, I am more and more convinced that this is not trolling, but simply ignorance, ”the analyst said.
Over the past 24 hours, the price of Dogecoin has increased by 4.4%, according to CoinGecko. At the time of writing, the cryptocurrency is trading at $ 0.21.
The rate of the imitator DOGE – the Baby Doge Coin (BABYDOGE) cryptocurrency – has grown much stronger. According to CoinGecko, over the past day, the cryptocurrency has risen in price by 24%.
The rise in asset value could also have been influenced by the message from the NASCAR racing series Brandonbilt Motorsports. On July 10, at the Atlanta circuit, driver Brandon Brown will drive a Chevrolet Camaro wearing a cryptocurrency livery.
NEWS: @BabyDogeCoin set to make @NASCAR_Xfinity Series debut with @brandonbrown_68 at @amsupdates!
Race Advance: https://t.co/N2pgIdgsnt pic.twitter.com/O0XHzZHFyf
— Brandonbilt Motorsports (@BMSRaceTeam) July 6, 2021
In June, Musk backed a proposal by Dogecoin developer Patrick Lodder to lower fees on the meme cryptocurrency network and increase its decentralization.
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