- An attempt to scale up Dogecoin too much will result in extreme centralization, Ethereum creator says.
- Elon Musk had previously revealed his plans to scale up DOGE by 900%.
- The best possible approach can enable scaling of up to 3x.
Ethereum creator Vitalik Buterin explains why Elon Musk’s idea to scale up Dogecoin comes at a high cost: an extreme centralization and endangering the structural characteristics of blockchain.
Tesla CEO Elon Musk, in an act to further elevate the memecoin after he had disparaged Bitcoin, tweeted that he was “working with Doge devs to improve system transaction efficiency.” In another tweet, the South African entrepreneur claimed that Dogecoin will emerge as the leading cryptocurrency if it “speeds up block time 10X, increases block size 10X & drops fee 100X.”
Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.
— Elon Musk (@elonmusk) May 16, 2021
In response to this pretentious claim, Buterin published an article titled “The Limits to Blockchain Scalability,” at which he rationally considers the aftermath and possible consequences of pushing the scalability of a blockchain too much.
Two Possible Solutions, Both Flawed
According to Buterin, there are two ways to try to scale a blockchain. The first and most attractive way is “increasing the parameters.” However, this method will consume 100% of CPU power, require a 10 MB/s connection, and finally, it needs a lot of storage (like 10 terabytes). While it may seem like a working approach, it is fundamentally flawed.
Computers cannot dedicate 100% of CPU power to validating the chain, they need a large portion of CPU power to resist unexpected DoS attacks and some spare capacity for tasks like processing transactions. The same is true for bandwidth and storage, both are overhead.
Another possible approach is “fundamental technical improvements.” This method can actually work, however, it can “allow an increase of perhaps up to ~3x – but not more, as we want running a node to become easier than it is today.”
Decentralization is the Red Line
Blockchain will hold no value if it leads to centralization – after all, it is this decentralization that facilitates the promise of impenetrable security. Vitalik Buterin, stressing the need for decentralization, added that all regular users should be able to run nodes. He stated:
For a blockchain to be decentralized, it’s crucially important for regular users to be able to run a node, and to have a culture where running nodes is a common activity.
Buterin said that sharded blockchains can scale much further, enabling the process of over a million transactions per second with the full security of a blockchain. “But it’s going to take work to do this without sacrificing the decentralization that makes blockchains so valuable,” he added.
Elon Musk’ Response
The nethead entrepreneur didn’t wait for too much to respond to this arduous research of the well-respected, diligent crypto veteran. Though, with a meme.
He fears the … pic.twitter.com/78WzM5ICjA
— Elon Musk (@elonmusk) May 24, 2021