What is the biggest limitation of Dogecoin?
Jan. 24, 2023, 2:05 p.m.
Dogecoin is a fun and popular cryptocurrency that has been around since 2013. It was created as a joke, but it quickly gained traction and a passionate community of users who use the coin for tipping content creators on social media platforms such as Reddit and Twitter. While Dogecoin has many advantages, there are also some important limitations you should be aware of before investing in it.
The biggest limitation with Dogecoin is its lack of scalability. As more people start using the coin, the blockchain will become increasingly congested with transactions – resulting in slower transaction speeds and higher fees. This problem was made worse by an exploit called ‘transaction malleability’ which allowed attackers to create duplicate transactions which confused wallets and exchanges, causing them to freeze their services temporarily until they could figure out what happened. This issue has been addressed now but it still can cause problems for users especially when trading large amounts of DOGE (exchanging DOGE for other cryptocurrencies).
Another limitation is that unlike Bitcoin or Ethereum, Dogecoin does not have smart contract functionality built into its protocol so any kind of decentralized application (dApp) cannot be implemented on top of it like they can on other blockchains such as Ethereum or EOS. Therefore if someone wants to develop something like a decentralized exchange then they would need to build this from scratch using another platform rather than being able to use existing tools that work with these protocols natively without having to code everything themselves from the ground up first.
Finally, due to its status as a joke currency there are fewer development resources available compared to coins such as Bitcoin or Ethereum meaning progress may take longer than usual depending on what needs implementing or improving upon within the network itself – making it harder for newbies looking at getting involved from an investment standpoint versus those already familiar with how things work behind-the-scenes in terms of blockchain technology overall too . With this said however do remember that while these issues exist – none are insurmountable by any means so long term investors shouldn't let them put off exploring all possibilities when deciding whether this type digital asset might just prove suitable after conducting further research independently meanwhile though!
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