Unlike BTC, ETH, or really any other major network, Dogecoin does not have its own miners -- it currently relies on another network, Litecoin, to survive.
So how did this happen and what does it mean?
1/ It's time to have a conversation about #Dogecoin.
If you're invested in $DOGE after @elonmusk's much endorsement (such wow), there are a couple of things that you should probably know👇
Unlike BTC, ETH, or really any other major network, Dogecoin does not have its own miners -- it currently relies on another network, Litecoin, to survive.
So how did this happen and what does it mean?
A network attack (like a "51% attack") would likely destroy Dogecoin, so its developers had to do something...
Put simply, AuxPoW enables miners to work on multiple coins at the same time and reuse the same work.
While the change likely saved Dogecoin, the concern was valid: ~95% of Dogecoin mining today is done by Litecoin miners.
When AuxPoW was adopted, not a lot of value was being settled on Dogecoin...
But in the month of January alone, Dogecoin settled the equivalent of over 8 billion USD 👀
While it protects both LTC and DOGE with the same work, it also makes it easier (and considerably cheaper) for an attacker to simultaneously take over both networks.
This ratio, coupled with the existence of AuxPoW, makes a 51% attack on LTC (and by extension DOGE) incredibly attractive since it would carry a high ROI.
Here's a hypothetical attack:
1) Buy large quantities of DOGE+LTC
2) Deposit all of it in a major exchange
3) Trade DOGE+LTC for BTC
4) Withdraw BTC
5) Issue 51% attack on LTC that makes it so that deposit (2) never happened in either chain
Although it's now 136% more profitable to merge mine LTC+DOGE, it'll take time for more miners to setup farms and bootstrap operations
The best thing to do is to increase transaction confirmations when receiving LTC or DOGE.
👉The 20 confs exchanges and users are currently relying on is not enough👈
A full day is what I'd personally require. That puts a ~2M USD cost floor on attacks.
No. Exchanges are primary targets, but if you've received a LTC/DOGE withdraw transaction from an exchange who is subsequently targeted, your withdraw might disappear after the attack takes place.
Is this the only problem affecting Dogecoin?
Such no... much no...
Dogecoin is a fork of Litecoin who hasn't seen much development in the past 4 years.
Networks like Bitcoin evolved and matured, while Dogecoin remained stagnant.
As of now, they're all on different heights and taking time to catch up to the tip of the chain.
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Microorganisms in biofilms are enclosed by an extracellular matrix that confers protection and improves survival. Previous studies have shown that viruses can secondarily colonize preexisting biofilms, and viral biofilms have also been described.
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Joe is the #1 / #2 podcast (depends per week) of all podcasts
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