Dogecoin’s success is quite the story. Nobody knows for sure when and how it happened, but what started as a memecoin in late 2013 is now the #10 largest crypto token in terms of market capital.
First introduced by British evolutionary biologist Richard Dawkins in 1976, memes are a unit of culture—such as “tunes, ideas, catch‐phrases, clothes fashions, ways of making pots or building arches.”
And perhaps it’s the story, or the stalwart community known affectionately as “Shibes” supporting its growth, people are drawn to Dogecoin, pushing it to at one point the fourth-largest cryptocurrency by market capitalisation.
But as a product of its times, Dogecoin has its own set of problems.
Originally derived from the now-defunct Luckycoin, itself a fork of Litecoin (LTC), Dogecoin’s code is very similar to that of Bitcoin.
Because it’s so similar to Bitcoin, the way in which the network operated meant that Dogecoin’s functions were severely limited to that of a ledger. Smart contracts cannot, and will not run on the network, making sophisticated transactions on the network impossible.
And if that’s not enough, Dogecoin’s dated algorithm also means that it can only process transactions at a measly 33 transactions per second (TPS), making it extremely slow by today’s standards. In contrast, some blockchain networks can process up to 2,000 TPS. (consider adding TON’s world record at 100,000 TPS, but I worry it may diminish Dogelayer’s features)
This has become a topic of hot debate within the community, but because it’s still relatively fast compared to Bitcoin, which operates at an average of 5 TPS, it has been a mild inconvenience its users have been able to tolerate.
DogeLayer is a Layer-2 solution designed to elevate Dogecoin’s functionality and user experience. Much like other Layer-2 solutions available on the market, such as Polygon, DogeLayer aims to address key challenges within the Dogecoin ecosystem. This is predominantly done through features such as increased Transactions Per Second (TPS), programmability and efficiency.
As stated earlier, the Dogecoin network processes transactions at approximately 33 TPS. Given its current popularity, block confirmations can take up to 10 minutes. In comparison, DogeLayer will be able to support close to 1000 times that rate, at 3,000 TPS. Block confirmation time on the Layer-2 can take as fast as three seconds.
But if blinding speed isn’t what you fancy, DogeLayer introduces programmability to Dogecoin, which allows for enhanced functionality on the memecoin. Unlike Dogecoin, which operates on a different algorithm, DogeLayer is turing-complete, which means that it is capable of smart contract functionality.
This feature will open up the world of decentralised applications, and automated transaction executions.
Using Proof-of-Authority, the EVM compatible DogeLayer will rely on a set of pre-approved validators, known as authority nodes or authorities. These entities are typically individuals or organisations with a known identity and established reputation within the network.
The framework ensures instant settlement and minimal transaction fees, promising a frictionless and cost-effective experience for users.
Popular blockchain projects that use PoA or variants of it include VeChain, Bitgert, Palm Network, and Xodex.
Beyond transactions, however, DogeLayer purportedly intends to use their speed and efficiency to contribute to the widespread adoption of Dogecoin payments. Integration capabilities with Web 2.0 applications and websites are accelerate adoption towards that goal.
Taking a leaf from Bitcoin ordinals, individual Dogecoins on DogeLayer can also be inscribed with content, which offers an additional layer of personalisation towards transactions. While Dogecoin does have its own DRC-20 Doginals, this feature is designed to create ERC-20 compatible digital collectibles within the Dogecoin ecosystem while maintaining the security and decentralisation inherent in Dogecoin.
To support this framework, the developers have introduced Libdogelayer, which is a universal library for all Dogecoin APIs. This particular library helps facilitate the transfer of assets from Dogecoin to DogeLayer, allowing developers to interact with a diverse set of decentralised applications on the Layer 2.
But the question remains – how will I bring Dogecoin onto DogeLayer?
Dogecoin can be bridged through DogeLayer’s Dogecoin Tunnel, which enables the seamless transfer of Dogecoin to the DogeLayer blockchain. Users will send Dogecoin to the bridge, which is a multi-signature smart contract, creating wrapped dogecoin (wDoge) in the process.
This wDoge is minted at a 1:1 ratio, ensuring that wDoge is pegged to Dogecoin. The Dogecoin held by the smart contract through this minting are then put in escrow (burning). The inverse happens when wDoge is unwrapped through the same bridge.
DogeLayer will then use wDoge as gas fees to support transactions on the network.
That, however, will not be the full extent of DogeLayer’s support. Through the DogeLayer Runtime, which comprises of the DogeLayer Blockchain and the DogeLayer Offchain SDK, DogeLayer will receive compatibility with the Ethereum Virtual Machine (EVM).
This compatibility enables users to bridge ETH, or any ERC-20 compliant token into DogeLayer, as well as link off-chain computations through the use of an oracle.
Finally, DogeLayer will also introduce a Decentralised Autonomous Organisation (DAO) to properly manage the chain. Users can actively participate in decision-making and voting, with rewards tied to their contributions.
Additionally, the DogeLayer DAO will manage the multi-signature wallets for dogecoin bridge, which will ostensibly add an extra layer of security to transactions.
Powering this DAO will be the DogeLayer Coin (DLC), a governance token that will grant its owners the ability to participate in decision-making, proposing, and voting on key matters relating to the future of DogeLayer.
The token, as with most governance tokens, can also be used for payment, staking, as well as to earn rewards. Miners can also stake tokens to contribute to the DogeLayer Runtime network.
The Dogecoin ecosystem, now in testnet, comes complete with a clear and intuitive explorer, accessible at dogetest-explorer.dogelayer.org.
Users can also create a web wallet, available at dogetest-wallet.dogelayer.org, and test the DogeLayer blockchain using the faucet at dogetest-faucet.dogelayer.org.
DogeLayer has outlined an ambitious three-stage roadmap:
Stage 1: Genesis (2023-2024)
Currently at this stage, the team will focus on fundamental aspects, including the development of basic functionality for the DogeLayer Tunnel. They have completed the deployment of the DogeLayer Testnet Blockchain, as well as the development and deployment of the DogeLayer Explorer.
The adaptation and development for integration with Metamask, a widely-used Ethereum wallet, will be a key priority. The team also plans to launch the DogeLayer Tunnel Web App & API during this period, offering users a seamless interface to interact with the platform.
The stage culminates with the full launch of the DogeLayer Testnet, facilitating developer deployment of decentralised applications (dApps) and comprehensive testing to ensure the robustness of the ecosystem.
Once testing is complete and the team is satisfied with its results, they will commence with the blockchain’s mainnet launch, in tandem with releasing its tokenomics, token issuance as well as establishing the earlier mentioned DogeLayer DAO for decentralised governance.
Stage 2: Enhanced Assets and Performance (2024-2026)
Stage 2 of the roadmap will see DogeLayer undergo significant enhancements.
The project aims to integrate its DogeLayer Tunnel with prominent ecosystems such as Bitcoin and Ethereum, expanding its reach and interoperability.
If all goes to plan, the team will then shift its focus to work on DogeLayer L3, which they believe to be a crucial advancement geared towards achieving faster transaction speeds, increased throughput, and a reduction in overall transaction costs.
Stage 3: Further Decentralisation (Beyond 2026)
The final phase will witness the development of a cutting-edge MPC-based multisignature wallet, aimed at enhancing asset management within the DogeLayer Tunnel.
This approach will leverage on Multi-Party Computation (MPC) technology, offering users increased security and control over their assets.
DogeLayer also intends to implement a decentralised Tunnel during this last phase, combining MPC and Blockchain Consensus to ensure a robust and trustless infrastructure.