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Elon Musk hails Dogecoin as technically superior

Photo of: Joseph Stone
by Joseph Stone

Elon Musk is at it again. According to him, the superiority of Dogecoin is undeniable and will only increase. This technical analysis is disputed.

The effects of Elon Musk’s statements on the cryptocurrency market are causing teeth to grind in the community. And it’s probably rightly so. For Ethereum co-creator Vitalik Buterin, this trend is transitory.

“I think it’s reasonable to expect a little bit of madness. But I think the markets will learn. Elon will not always have such influence,” he told CNN. Musk, however, does not intend to give up that influence easily.

As usual, the boss took advantage of his more than 50 million Twitter followers to praise Dogecoin. Elon Musk has been lending his services to blockchain developers since 2019. His technical skills, however, are not his primary asset.

That could change. And the Tesla CEO intends to make that known. “Ideally, Doge speeds up block creation by 10 times, increases block size by 10 times and reduces fees by 100 times. Then it would win hands down. “

Dogecoin, soon to be the most efficient blockchain on the market? So that’s what the leader is promoting. This reasoning is a bit hasty and questionable, however, believes a technical expert like Vitalik Buterin.

In a blog post, spotted by Cointelegraph, the co-founder of Ethereum disputes this argument. For him, combining scalability and speed is no small challenge. It can result in side effects.

Buterin believes that this goal can lead “to extreme centralization and compromise the fundamental properties that make a blockchain what it is. “And the expert recalls that three key limitations hinder the ability of a node to process a large number of transactions.

Clearly, there is no shortage of simplistic estimates for increasing scalability. Indeed, Elon Musk also indulges in a simplistic analysis, as detailed by Vitalik Buterin. For example, there are constraints on increasing block sizes.

“But no matter what we do, we will always be very far from being able to naively take the average bandwidth in MB/sec, convince ourselves that a latency of one second is valid and be able to have blocks of that size,” comments the Ethereum executive.

For Buterin, there are two ways to increase the capacity of a blockchain. The first is based on fundamental techniques like sharding. The second is by simply increasing the parameters, as Musk does.

But “increasing the parameters sounds very attractive at first glance”. And calculations on a corner can lead one to believe that “a consumer laptop can process thousands of transactions per second” without innovation.

The problem is that “this approach is fundamentally flawed,” says Buterin. Will this technical analysis convince Elon Musk? The executive responds with a joke, believing that Buterin fears Dogecoin.