With the newly introduced dogechain, users of Dogecoin can now also access DeFi apps and possible future NFT marketplaces.
What is the Dogechain?
Dogechain is a newly launched blockchain platform, with which Dogecoin users can now also use the coin for NFTs and DeFi apps.
With Dogecoin, only payments can actually be processed, since the blockchain is not compatible with dApps and this is what the dogechain is trying to circumvent. Thus, the meme coin, for which there are not many use cases, could soon become an exciting project with many applications.
However, the platform is not a traditional layer 2 solution for Dogecoin, as no Dogecoin developers are involved in the project. This was developed by the community and is intended to create new use cases for the members.
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Shortly after publication, the price of Dogecoin has risen abruptly. Fans of the cryptocurrency are very excited and hope for a lot from the new project.
On the other hand, however, there are many who are not particularly convinced by the platform. This could be mainly due to the fact that the Dogechain is not an official project of Dogecoin.
Dogechain as a layer-2 solution for DeFi and NFTs?
The new blockchain platform is already being called a Layer-2 solution for Dogecoin, which can be used to create DeFi protocols, NFTs and apps.
However, Dogechain is not a real layer-2 network, as it does not build directly on Dogecoin.
It is instead a separate network based on Polygon Edge, a custom blockchain from Polygon. This is the most popular Ethereum sidechain and therefore also allows apps and games developed for Ethereum to run here.
The Dogecoin Foundation has already confirmed on Twitter that no own developers and not even the inventors of Dogecoin, Billy Markus and Jackson Palmer, are involved in the project.
Claims in paid media that Dogecoin launched a “Dogechain” test network are false. Neither @Dogecoin/@dogecoin_devs, nor @BillyM2k, @ummjackson or others associated with @DogecoinFdn are in any way affiliated with the token.
– ⬢ Jens Wiechers ⬡ 🇺🇦 (he/they) (@jwiechers) August 16, 2022
The dogechain is already running and offers users a transfer from Dogecoin (DOGE) to Wrapped Dogecoin (wDOGE) in order to be able to interact with the platform. With the help of the new token, it is possible to use DeFi apps and more on the platform. In addition, it is possible to pay gas fees with the Dogecoin.
If you take a look at the official website of the Dogechain, you can notice the same atmosphere with several meme images of the Shiba Inus, which are common among the Dogecoin community.
$21 million worth of tokens have already been traded on the Dogechain, according to DEX Screener. The number of transactions is about 480,000. In addition, more than 58,000 wallets have been created.
Improvements ahoy! ⚙️🔧
🌪 Shibes, #Dogechain has been experiencing some crazy activity in the past few days. The Dogechain hype has taken the internet by storm.
The numbers have been simply incredible. In just 5 days, we gathered:
🔹 +58,000 wallets
🔹+480,000 tx pic.twitter.com/pNOmmScOjR– Dogechain💜 (Giving away a Tesla) (@DogechainFamily) August 16, 2022
According to the website, an airdrop is also planned, in which DOGE holders will receive native DC tokens. Even users of the trading platform Robinhood, should benefit from the airdrop, if they own dogecoin there.
Importance of Dogecoin (DOGE)
Shortly after the release of the Dogechain, the price of Dogecoin directly jumped by 16 percent. Thus, the dogechain was positively received by the community and users bought Dogecoin to test the platform.
The meme coin now has an important meaning for the platform, as it is needed to get into the platform.
Dogecoin (DOGE) is converted to wrapped dogecoin (wDOGE), which can be used to use dApps and more. It is also necessary to hold Dogecoin in order to dust off DC tokens during the planned airdrop, with which the platform can then be used.
The dogechain is quite significant for the development of DOGE. If it is a great success, the platform will attract many new users who will have to buy or own Dogecoin to use it. Thus, the value of Dogecoin could increase even more in the future.
Frequently Asked Questions (FAQ) about Dogechain
In the following section we answer frequently asked questions about the publication of the Dogechain
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