Dogecoin (CCC:DOGE-USD) is in a ruff place. The altcoin has been fluctuating quite a bit, its volatility made ever so clear every time Elon Musk decides to speak out. But, with a new piece of Dogecoin news, the crypto may be able to break its mold and break out without social media help.
Celsius Network CEO Alex Mashinsky has made the speculative prediction that Dogecoin will migrate from proof-of-work to proof-of-stake. The two proofs are popularly utilized proof algorithms.
But what does this all mean? Bitcoin (CCC:BTC-USD) uses proof-of-work, which requires miners to put energy toward solving cryptographic puzzles in order to deter blockchain-gaming. Cardano (CCC:ADA-USD) uses proof-of-stake, which allows miners to mine or validate block transactions with a power relative to their total holdings of coins.
According to the latest Dogecoin news, a shift could be pretty powerful for DOGE.
Dogecoin News: What Change Will Mean for DOGE
The difference between the two are highly technical, but investors’ primary interests are over the energy differences. Proof-of-work requires vastly more energy than proof-of-stake. Bitcoin’s proof-of-work mining saps huge amounts of power, about 114 terawatt hours per year, according to a recent study by Galaxy Digital.
Cardano has been one of the most sought-after crypto plays in recent days thanks to its more efficient proof-of-stake process. It is smashing through all-time highs seemingly every day as investors look for greener pastures.
That’s why the prediction is such great news for DOGE. Transitioning to a less energy-consumptive model will make it an undeniable play for investors of all walks. Also, it may be speculation, but it would make sense. Musk recently tweeted that he is collaborating with DOGE devs on a way to up the efficiency of the coin. There is some substance to the idea of a transition with these two statements cropping up in their own spaces at the same time.
Regardless of the details, what matters is that there is likely a coming change. And that change will have investors barking for Dogecoin yet again.
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.
