Dogecoin, which has the greatest market capitalization of any joke cryptocurrency in the world, is set to undergo a key physical update that has the potential to propel its price to $1, which is where it ought to be.
According to a blog post published on Monday by BluePepper Labs, the “wDoge bridge,” which will connect Dogecoin to Ethereum for the first time, is now in an advanced development stage and is projected to go live until the year 2022 comes to a close. Users will be able to transfer DOGE from the Dogecoin blockchain to the Ethereum blockchain and back again with the help of the bridge, which was modeled after the WBTC blockchain bridge, which is considered to be the most secure blockchain bridge.
Additionally, it will use Dogecoin in smart contracts, which will make it possible for “Dogecoins on the Ethereum blockchain to be utilized in Turing-complete smart contracts, DeFi protocols, NFT marketplaces, and wallets with great features,” as noted in the blog.
Because of the restrictions placed on its command line, users of Dogecoin are presently unable to run blockchain network or create a variety of decentralized protocols on top of the cryptocurrency. Since the creation of the bridge began in 2017, engineers have struggled with Dogecoin’s software, adjusting its transactional compatibility with Ethereum and determining the potential cost of the project.
Confidentiality was also a primary concern for the new bridge, as previous blockchain bridges, such as Axie Infinity’s Ronin bridge, had been the target of hacks that resulted in the loss of over $620 million in March alone. The most recent data from Chainalysis has shown that over one billion dollars’ worth of crypto assets was stolen using blockchain bridges in 2022. This makes blockchain bridges the unhealthiest mechanisms utilized in the DeFi business.
Additionally, Bluepepper disclosed that it intended to construct an ecosystem on top of the bridge and would be calling on a variety of stakeholders, such as Whales and Marketplaces, to contribute availability. When it is finished, the bridge will include a controlling authority (DAO), a custodian who will be responsible for protecting all DOGE that will be used to mint wDoge, and a businessman who will be responsible for facilitating the minting and destroying of wDoge.
In spite of Dogecoin’s meteoric rise in popularity, the Dogecoin community has been patiently awaiting the launch of the bridge for a considerable amount of time. Elon Musk has been one of the most vocal proponents of the digital asset, and he has stated on numerous times that he is collaborating with the programmers of Dogecoin to enhance the technology that is used in the blockchain.
Within the past year, numerous well-known companies, such as AMC, Tesla, Newegg, airBaltic, and the Dallas Mavericks, which are owned and operated by Mark Cuban, have begun taking payments in the form of dogecoin. Dogecoin payments and general activity on the blockchain are prepared to soar tremendously once the aforementioned bridge goes operational, which will also tag together with the price of the cryptocurrency.
Since it reached its all-time high in May 2021, Dogecoin has experienced an alarming pullback, dropping over 90 percent in value to trade at $0.07 as of the time this article was written. Despite this, the cryptocurrency has been able to maintain its place as the tenth most valuable in terms of market value, which is indicative of the level of faith that investors have in the blockchain.