- The Layer-2 Dogechain allows users to launch new projects in DeFi, dApps, NFTs, and much more.
- Dogechain is not an official project from Dogecoin, however, its daily trading volumes have been north of $20 million.
In the last 24 hours, memecoin Dogecoin (DOGE) has surged by a staggering 11 percent as the Dogecoin Foundation extends support for Dogechain. But what’s Dogechain?
Dubbed as the Layer-2 chain for Dogecoin, Dogechain enables the creation of decentralized finance (DeFi) protocols, decentralized applications (dApps), blockchain games, and non-fungible tokens (NFTs). But unlike other Layer-2 networks, Dogechain isn’t the same.
Instead of building atop the Dogecoin blockchain, it is a separate network based on Polygon Edge. This is a custom blockchain software from the Ethereum sidechain, Polygon. Besides, Polygon Edge is also compatible with the Ethereum Virtual Machine (EVM). Thus, it can run games and apps built for the Ethereum blockchain network.
Also, note that Dogechian is not an official Dogecoin project. In a tweet message on Tuesday, August 16, the Doge Foundation clarified that they are not associated with the Dogechain project in any way. The message also stated that Dogecoin founders Jackson Palmer and Billy Markus have nothing to do with Dogechain. Furthermore, they clarified that Dogechain is in no way related to the Dogecoin blockchain explorer that shares its name.
The working of Dogechain
Dogechain, the Layer-2 chain for Dogecoin allows DOGE holders to bridge their holdings to the platform and receive wrapped Dogecoin (wDOGE) in return. They can later use this wDOGE on new platforms to interact with DeFi apps, dApps, games, and future NFT marketplaces. For any transactions on Dogechain, users can also pay the gas fee using DOGE.
Layer-2 platform Dogechain is already up and running by letting users transfer their DOGE. It also allows users to interact with DEXs and buy new tokens minted on the Dogechain. As per the data from DEX Screener, the 24-hour trading volume for Dogechain is currently $26 million.
On the other hand, the Dogechain also claims to have created over 58,000 wallets and 480,000 total transactions. As per the Dogechain website, it plans a future airdrop of its native DC tokens to all DOGE holders. The airdrop will also be for people who hold DOGE on the crypto trading app Robinhood upon withdrawing the DOGE from the app.
Dogechain project has received a mixed response from the crypto community. Some have even compared it to BNB Chain where it’s easy to launch new tokens. However, there are several pump-and-dump schemes running on the platform. Roc Zacharias, one of the core contributors of Dogechain said:
Be careful this is a new chain and it’s literally the Wild West on Dogechain. Be careful and DYOR. It’s definitely risky stuff similar to BSC when it first launched. New frontier with lots of potential, but also lots of risk! Be safe and have fun out there friends!
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