By
Steve Muchoki
April 25th, 2024
Tenev stated that Dogecoin’s throughput is about 40 transactions per second, based on a 1MB block size and a minute block time.
Robinhood CEO Vlad Tenev believes Dogecoin is capable of becoming the “future currency of the internet.” In a Twitter thread posted on April 14th, the Robinhood CEO explained how Dogecoin could become the currency of both the internet and the people. Tenev discussed the possibilities in a thread of 12 posts, which has since gained the crypto community’s attention.
Robinhood users can now receive and send Dogecoin on the app, which has triggered Tenev to think about the crypto’s future. The CEO started with the need for smaller transaction fees, which is already here. He revealed in his tweet that the typical transaction fee is now $0.0003 since the last November’s 1.14.15 update. Tenev compared the relatively low transaction charge to the 1$ to 3% network fees of some major card networks.
Additionally, Tenev discussed the swiftness of an ideal block time. According to him, block time should be fast so that the transaction in question can be recorded in the next block in no time. The Robinhood executive said this would result in less time than the time required to pay at a POS terminal.
Robinhood CEO Explains How Dogecoin Could Become “Currency of the Internet”
However, he warned that the block time should not be too fast and that miners would start building a lot of competing chains. This will avoid the wastage of a massive amount of energy. Tenev proposed a 10-second block time for Dogecoin instead of the current 1-minute block time. Seconds of block time would mean less time than completing a debit card transaction. Tenev stated that Dogecoin’s throughput is about 40 transactions per second, based on a 1MB block size and a minute block time. He explained further:
“As a comparison, Visa’s network can theoretically handle 65,000 tps. Doge would need to be able to significantly outperform Visa, which entails increasing throughput by at least 10000x. Fortunately, this is easy to solve simply by increasing the block size limit. Moving to a 1GB (and later 10GB) block size limit would provide all of the throughput a global currency would need for the foreseeable future. L2 solutions are not necessary to solve this problem.”
The Robinhood CEO also criticized Dogecoin for being inflationary and having infinite supply. Unlike DOGE, Bitcoin has a limited supply of 21 million coins. With a current supply of around 132 billion, 5 billion new DOGE are created annually. In conclusion, Tenev urged Dogecoin developers to increase the crypto’s block size limit.
The thread by the Robinhood executive came hours after Dogecoin creator Jackson Palmer issued a statement to attack Musk’s Twitter (NYSE: TWTR) offering. Palmer said Musk is “forcing one of the largest public social media platforms” to go private.