What is Dogechain?  So-called Dogecoin ‘Layer-2’ for DeFi, NFT and Gaming

What is Dogechain? So-called Dogecoin ‘Layer-2’ for DeFi, NFT and Gaming

In short

  • Dogechain is a newly launched blockchain platform that allows users to bridge Dogecoin (DOGE) and use it for DeFi, NFT and more.
  • It is not a traditional layer 2 scaling solution for Dogecoin as billed, nor are Dogecoin developers or creators involved in the project.

Dogecoin it may have started as a joke, but the leading meme coin could get a lot more use with its launch Dogechain—sort of.

Like Dogecoin pump price today—up 11% in the last 24 hours—much of the chatter around it right now is about the so-calledlayer-2 for Dogecoin” called Dogechain, which is billed as enabling creation DeFi protocols, NFT collectibles and decentralized applications (dapps) and games.

However, Dogechain is not a true layer 2 network because it is not built on top of Dogecoin. Instead, it’s a separate mesh based on Polygon Edge, which is custom blockchain software from Polygonthe most popular Ethereum side chain. And it’s compatible with the Ethereum Virtual Machine, which means it can run apps and games built for Ethereum.

However, it is not an “official” Dogecoin project. Dogecoin Foundation retweeted the message today states that it is not involved in Dogechain, and neither are the coin’s original founders, Jackson Palmer and Billy Markus. They clarified that it is also not related to the Dogecoin blockchain researcher that shares that name.

Owners of Dogecoin (DOGE) can bridge their ownership to Dogechain to receive Wrapped Dogecoin (wDOGE) in return and then use it on the new platform to interact with DeFi applications as well as potential future NFT markets, dapps and games.

Dogechain is already up and running, allowing users to transfer and interact with DOGE decentralized exchanges (DEX) to purchase new tokens minted on the chain. Dogecoin can also be used for payment gastransaction fees on Dogechain, according to the official website, which has the same goofy, meme-y vibes common among the Dogecoin community.

According to DEX Screenerworth about 21 million dollars tokens transactions took place on Dogechain in the last 24 hours, with DogeSwap leading the charge with $16 million. Top tokens include Doge Eat Doge (OMNOM), DogeShrek, Bourbon and PinkyDoge (PINKY).

According to today’s tweetThe Dogechain team claims that users have already created more than 58,000 wallets since the network launched five days ago, along with more than 480,000 total transactions.

The Dogechain website makes a number of longer-term promises about its planned future airdrop of native DC tokens for Dogecoin holders. Even people holding Dogecoin in cryptocurrency and stock trading app Robin Hood they will be able to receive free DC tokens when they withdraw their DOGE from the app, the website claims.

However, it remains to be seen whether these promises will ultimately be kept or not. And with statements that Dogecoin’s creators and core developers are not involved, there is an understandable wariness among social media users about Dogechain.

Some have compared it to the BNB chain (formerly Binance smart chain, or BSC), where it is easy to launch new tokens and pump-and-dump schemes are common. Roc Zacharias, co-founder of Polygon DEX QuickSwap who describes himself as a major contributor to Dogechain, tweeted as much. “It’s literally the Wild West on Dogechain,” he added.

On the other hand, some are excited about the prospect of playing around with applications and tokens on a Dogecoin-themed chain, and are speculating about tokens with silly names.

“Bridging to Dogechain, they will probably lose everything. Wish me luck,” a crypto investor who goes by the pseudonym wrote on Twitter Unfortunately. Shortly after, they added, “I haven’t bought this many shitcoins in a long, long time.”

“[Obviously] lots of wild speculation and shitcoins, but kind of like the first big festival after being shut down for two [years]”, added the crypto investor Roger AVAX on Twitter. “[Probably] bad for you, but a lot of fun.”

Interestingly, a competing token based on Ethereum Shiba Inu (SHIB)—based on the same dog as i the original Doge meme—is set to launch its own Layer 2 scaling network called Shibarium.

Disclaimer

The author’s views and opinions are for informational purposes only and do not constitute financial, investment or other advice.

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