VITALIK BUTERIN IS ACTIVELY ADVISING DOGECOIN

Dogecoin crashed after rumors started circulating that Dogecoin will be moving from Proof of Work to Proof of Stake. The Shina inu behind the meme is also falling. The Dogecoin road map published by the coin foundation I'm December 2021 specifies that a proposal will be tabled for a transition to Proof of Stake. One of Dogecoin's developers recently clarified that this decision will be made by the community, not the foundation. It seems unlikely that the transition to Proof of Stake is the actual reason why Dogecoin crashed but it is more likely than not.

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That is because Dogecoin is heavily concentrated on the top 10 wallets holding 40% of its supply. The entities will basically control the blockchain moreover. Dogecoin is merged mine with Litecoin LTC, with cryptocurrencies prices going down, energy costs going up and countries starting to restrict mining operations, a transition to PoW could do serious damage to Litecoin miners and lower the security of its blockchain. This will be bad news for the crypto market because Litecoin has historically functioned as a kind of testnet for Bitcoin. Most of the Bitcoin update was done on Litecoin which is why I suspect that the next dogecoin update will be privacy focus. Litecoin recently introduced a privacy sidechain.

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The power entities in the Ethereum community want Dogecoin to be an additional testnet for future Ethereum upgrades especially those related to governance. Vitalik Buterin is actively advising Dogecoin and has been pushing for PoS transitioning. The Ethereum foundation recently began short down Ropsten, Ethereum's longest-running testnet because it is expensive to maintain and is not been used that more. Ethereum developers are also planning of shorting down the Rinkeby testnet later this year for the same reasons. Having Litcoin as a day factor test and Dogecoin as an Ethereum day factor testnet just makes sense. It will also be good for Dogecoin and it will ensure the survival of Dogecoin but it could lead to centralization issues.

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