A Dogecoin update is reportedly coming in 2021 with crypto-focused YouTuber Matt Wallace, who runs the YouTube channel Final Stand, tweeting that this update will “position Doge perfectly to become one of the most used currencies in the world.” Elon Musk also took to Twitter to reply to Wallace’s tweet, thus increasing interest in the Dogecoin update. So what does it all mean?
Dogecoin update 2021 explained
Dogecoin has experienced major fluctuations recently, with many jumping away from the cryptocurrency as a result, or believing it to be dead in the water. However, Wallace’s tweet alludes to a future Dogecoin update that was outlined in March, which could spell good news for the crypto. This update will move the crypto more in line with Bitcoin, with it set to add SegWit and CheckSequencyVerify (CSV), a big step up for the crypto.
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
Dogecoin update notes
The notes for the new update are as follows:
- In scope
- Segregated witness a.k.a. segwit
- Functionality: Separates spending proofs (i.e. signatures) from transactions when embedded in blocks
- Rationale: Further reduces transaction malleability.
- Scope: BIP141, BIP143 and BIP147
- Note: we will carefully consider P2W* addressing.
- CheckSequenceVerify a.k.a. CSV
- Functionality: Allows consensus-enforced locking of an output until a relative time and exposes the field to redeem scripts
- Rationale: Allows for much more sophisticated redeem scripts, must-have feature for Lightning-like L2 networks.
- Scope: BIP68, BIP112 and BIP113
- Not in scope
- VersionBits – Needs another, more dangerous soft-fork, see #1340 and #1344. We deem this too risky to do at once with the features described above,
- especially for a meta-feature.
- TapRoot – Not yet deployed on Bitcoin
- Extension Blocks – Not yet deployed on Litecoin
In other news, crypto experienced a major crash this week, with many experiencing tremendous losses as the market continues to fluctuate. Anon Inu token was also revealed, with the Anonymous crypto doing the rounds on social media.