The crypto-verse is home to thousands of cryptocurrencies. While some mirror the OG cryptocurrency Bitcoin [BTC], a few others claim to address its shortcomings. While the industry was trying to build a medium that upholds financial freedom, a touch of humor was added. Dogecoin [DOGE], an asset inspired by a meme, started off as nothing but a joke. However, now, it seems to be looming into something more significant than that. But, an alleged Layer 2 solution for Dogecoin called Dogechain appears to be making the rounds.
Dogechain has been marketing itself as a layer-2 for Dogecoin. The chain reportedly went live earlier this month and has been the talk of the crypto town ever since.
However, it isn’t developed on top of DOGE. It was brought to light that the Ethereum-compatible smart contract network was formulated employing Polygon Edge. This is custom blockchain software from the Polygon network thriving as a prominent Ethereum sidechain.
Through this, users will be required to bridge DOGE onto the network to employ its applications. After DOGE is on the Dogechain, users would garner the wrapped version of the asset or wDOGE.
In addition, users of Dogechain will be allowed to transfer onto decentralized exchanges [DEXs] to purchase tokens minted on the chain. The website even pointed out that DOGE can be employed to pay gas fees on the Dogechain.
The network claims to have garnered a whopping 58,000 wallets and has reportedly overseen 480,000 transactions. The daily transaction count peaked at 175,000 per day.
Additionally, Dogechain intends to bring more upgrades like an increase in RPC nodes into the system. With this, the network hopes to become more stable.
Is Dogechain a scam?
Despite the involvement of DOGE, the Dogecoin Foundation affirmed that it had nothing to do with the Dogechain. The tweet read,
“Claims in paid media that Dogecoin launched a “Dogechain” test network are false. […] We generally don’t comment on these things publicly, because it tends to only amplify attention, but multiple PR/media sites are reporting or insinuating that Dogecoin launched this token or its test network or is closely affiliated with it.”
Several members of the Dogecoin community also came forward to warn naive investors.
Amidst this, Dogecoin was enduring a substantial plummet. At press time, Elon Musk’s favorite cryptocurrency traded for $0.08225 with a 6.29 percent drop over the last 24 hours.
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