Dogecoin (CCC:DOGE-USD) is looking at a chance to cement itself as a coin with legitimate utility. Currently relegated to its meme status, much of the bearish talk on DOGE is that it’s a simple novelty — a plaything. But, with the prospect of Dogecoin smart contracts becoming reality, DOGE could transcend that chatter.
Smart contracts are a huge part of blockchain now; if you want to be a serious play as a standalone chain, you better offer some sort of smart contract feature.
With that said, let’s take a look into smart contracts, DOGE, and what the news means for investors.
Dogecoin Smart Contracts: What to Know Now
- Smart contracts are contracts between parties that are handled and executed by a computerized protocol.
- People use smart contracts for a number of reasons. Smart contracts can perform transactions, act as a “key” for cryptographic data, serve as a framework for developing decentralized apps (DApps), etc.
- Many different blockchain providers feature smart contracts on their chains: Ethereum (CCC:ETH-USD), Cardano (CCC:ADA-USD) and Internet Computer (CCC:ICP-USD) are popular examples.
- News of Dogecoin developing smart contracts is out, courtesy of YouTuber Matt Wallace, via his Final Stand channel. Wallace says he got his news from the Dogecoin developers.
- Wallace discusses in his report the benefits of smart contracts for cryptocurrencies, citing decentralized finance as a huge reason.
- Smart contracts on the DOGE chain would allow users to build passive income while cutting out the middleman of banks. This means the ability to do things like fix rates without central authority and withdraw funds whilst accruing interest.
- Wallace also cites the inclusion of smart contracts as notable because through DeFi smart contracts, users can cut banks off from transaction fees common with credit cards.
- All in all, the news has huge implications for DOGE’s price. With a very functional and exciting utility, it’s not a bold prediction to assume the coin’s price will take off on a bull run.
- As such, it’s important to heed the warning to tread lightly with DeFi applications. The SEC is taking pains to regulate crypto and crypto exchanges. Unfortunately for the asset class, any ground the committee gains in this effort brings investors closer to the extinction of DeFi.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.