Robinhood CEO Vladimir Tenev believes Dogecoin (DOGE-USD) can become the day-to-day “currency of the internet.”
Robinhood Chief says all it will take to transform the meme coin into a quicker and more affordable payment currency is some improvements.
He explained his thoughts via a Twitter thread, providing some suggestions on what Dogecoin developers could look to implement to make DOGE the “people’s currency.”
Can #DogeWill the Internet truly be the future currency for the Internet and its users? As we added the ability to send/receive DOGE on Robinhood, I’ve been thinking about what that would take.
— VLAD (@vladtenev) April 14, 2022
Increase block size, reduce block time
Tenev says Dogecoin’s transactions fees are already “vanishingly small” after last November’s 1.14.5 update. The network’s average transaction fee o $0.003 is way smaller than the up to 3% charged by leading card payment providers.
In that case, he proposes that what needs to improve is DOGE’s block size and block time. He notes that Dogecoin could increase its total throughput by doing this. This is comparable to Visa’s levels.
Tenev points out that as it stands, Dogecoin’s throughput is around 40 transactions per second (TPS). Granted, this is down to the cryptocurrency’s 1MB block size and 1 minute block time.
In comparison, Visa can handle up to 65,000 TPS. Dogecoin must increase its throughput by 10,000 times to surpass VISA. This may seem like a huge task. Robinhood executive says that this can be solved by DOGE developers by increasing the block size.
“Moving to a 1GB (and later 10GB) block size limit would provide all of the throughput a global currency would need for the foreseeable future. L2 solutions are not necessary to solve this problem,” he noted.
You might consider adopting a fixed currency supply model.
Devs of Dogecoin should also look into ways to make Dogecoin more inflationary than it currently is, he said. This, he said, could be done by adopting a finite supply, much like Bitcoin (BTC)’s 21 million cap. If this were the case, Dogecoin’s inflation rate could reduce over time.
Current supply of 132 million DOGE is equivalent to an inflation rate higher than 5%. Tenev believes that a fixed supply would reduce this to 2%.
Some of these suggestions have been criticized on CT, especially the possible increase in block size at the cost of decentralization.
But the trade-off is…
Tenev acknowledges that a block size of 10GB could mean more complex hardware for miners to run full nodes. This would make it difficult for some enthusiasts to take part in the security of the network. Some observers consider this unacceptable as it would result in a more centralised network.
Tenev suggestsThis could be the compromise Dogecoin developers will have to make if they decide to take his offer.
It is not a good deal. It is essential to be as solid as possible in order to have independent, decentralized money. You are defending the network from well-funded and connected large entities. You will lose the fight if you make these tradeoffs.
— Bitcoin LightningNetwork+ (@BTC_LN) April 15, 2022