- Decoupling Dogecoin from Litecoin’s mining dependency to Ethereum’s algorithm, it will allow more ETH graphics card miners to participate in the network.
- The future effect of forking Dogecoin could divide the meme coins community and cash inflows, which in turn affects the underlying value.
EthereumFair (ETHF) – a recent fork of the original Ethereum network that intends to maintain the Proof-of-Work algorithm consensus – has outlined plans to fork the largest meme coin based on the Bitcoin network, Dogecoin, for several reasons to an Ethereum series algorithm. According to the Silicon Valley-based company, the top reason for the Dogecoin fork is to maintain the proof-of-work (PoW) algorithm consensus by extending its compatibility with Ethereum’s algorithm.
Reportedly, the new Dogecoin fork will maintain a 1:1 ratio on the ledger, which means the total supply will be approximately 132,670,764,300 DOGE units. However, the value of the newly formed Dogecoin will not necessarily be the same as the original one. Furthermore, it will depend on the market’s dynamics including demand and supply.
This #dogecoin fork will still retain the 1:1 ledger, but there will be some detailed adjustments from the Bitcoin series algorithm to the Ethereum series algorithm.
— EthereumFair($ETHF) #PeoplePOW (@EthereumFair) February 4, 2023
The future effect of forking Dogecoin could divide the meme coins community and cash inflows, which in turn affects the underlying value. However, the original Dogecoin with Elon Musk’s support is expected to gain more traction along the way.
Decoupling Dogecoin from Litecoin’s mining dependency to Ethereum’s algorithm, it will allow more Eth graphics card miners to participate in the network. As such, the fork has been termed economically sound to the former Ethereum mining community who still holds on to their rigs after the Merge event.
We believe that this fork will help improve the overall security, stability, and decentralization of the #Dogecoin network. We encourage all members of the community to participate and share their feedback.
— EthereumFair($ETHF) #PeoplePOW (@EthereumFair) February 4, 2023
What’s in for Dogecoin Future Market Outlook
The Dogecoin network has experienced significant competition from other meme coins like Shiba Inu, and Baby Doge Coin itself. On-chain data has shown the Dogecoin community has not grown as fast as Shiba Inu’s or Baby Doge Coins in the past year. Nonetheless, the Dogecoin community, particularly the miners, is well incentivized through heightened volatility. As such, the Doge ecosystem is bound to get stronger with time. Notably, Dogecoin has a network hashrate of about 693.84 TH/s and a mining difficulty of around 12.770M as of today. The largest Dogecoin pool miners include ViaBTC, F2Pool, and AntPool.
The competition driven by the creation of Dogecoin’s fork could perhaps push Musk to adopt the asset as a form of payment on Twitter. Moreover, Musk announced through Twitter last year that he remains committed to helping Dogecoin succeed.
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Nonetheless, as more traders move to low-cap speculative digital assets, DOGE could lose short-term traders to the EthereumFair-backed Dogecoin fork. Moreover, low-cap digital assets have higher volatility although minimal liquidity due to few traders.
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