QED and Nexus to Introduce Smart Contracts to Dogecoin
New Layer-2 Solution for Dogecoin
Blockchain developers QED Protocol and Nexus have announced a new layer-2 (L2) scaling solution aimed at bringing smart contracts to the Dogecoin network. This new addition, a zero-knowledge virtual machine (zkVM), is designed to help the Dogecoin network compete with other smart contract platforms like Ethereum and Solana.
Dogecoin’s Unique Blockchain Structure
Dogecoin operates on a proof-of-work (PoW) blockchain similar to Bitcoin’s but with less computationally intensive transaction verifications. Unlike Bitcoin, Dogecoin has no upper limit on its total supply. Currently, Dogecoin does not support smart contracts, which limits its functionality compared to other blockchain networks.
Boosting Dogecoin’s Capabilities
The introduction of a high-throughput zkVM on Dogecoin aims to make the network “stronger than all others,” according to QED and Nexus. This will enable developers to create a wide variety of high-performance applications on the network, including decentralized exchanges and NFTs.
Memecoin Market Growth
In 2024, the memecoin market has become one of the fastest-growing sectors in the crypto space. Platforms that support smart contracts for memecoins often see significant profitability. For instance, Solana’s Pump.fun achieved revenues surpassing $100 million in August.
Dogecoin’s Market Position
Launched in 2013 as a satirical commentary on Bitcoin, Dogecoin (DOGE) now commands a total market capitalization of approximately $17 billion. It is widely considered the first “memecoin” and is also used for micropayments and tipping.
QED and Nexus’s Previous Work
QED Protocol has already developed a zkVM scaling solution for the Bitcoin network to support smart contracts and low-latency transactions. Nexus operates Nexus zkVM, a modular scaling network using zero-knowledge proofs. These solutions are increasingly settling on PoW blockchains like Bitcoin, with the total value locked (TVL) on Bitcoin’s L2s surging to approximately $1.4 billion in September.
Future Prospects
According to Daniel Marin, Nexus’ CEO, the technology being implemented for Dogecoin could be replicated in other ecosystems due to recent breakthroughs in zero-knowledge technology. This development opens up new possibilities for Dogecoin and potentially other blockchain networks looking to enhance their capabilities.
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