Dogechain Bridge Explained
Dogechain bridge allows holders of $DOGE coin to gain more utility for their coins beyond transactions.
This year has been a rollercoaster for crypto lovers. From TerraLuna's collapse to FTX's bankruptcy, many events shaping the crypto market have occurred this year. They have led crypto holders through many emotions, including fear, anxiety, worry, relief, and devastation.
Amid all this chaos, Dogechain was launched in September.
What is Dogechain?
First, I'd tell you what it isn't. Dogechain isn't an offshoot of Dogecoin, regardless of how similar they sound and how intertwined they are.
There are many technical and somewhat unclear definitions of Dogechain out there. The simple explanation is that Dogechain is a Proof-of-Stake blockchain built on the Polygon network to improve and increase DeFi access for Dogecoin users.
Dogechain was built to improve Dogecoin and create new avenues where it can be used to access the wider world of DeFi. Polygon Edge, the network on which the Dogechain is built, supports the building of EVM-compatible (Ethereum virtual machine) blockchains that allow the creation of decentralized applications, tokens, and the minting of NFTs.
This opens considerable possibilities for Dogecoin holders, who can now gain more utility beyond simple transactions from $DOGE. But how will that work when $DOGE cannot be used on Dogechain?
How does Dogechain bridge work?
To combat the compatibility problem between $DOGE and Dogechain, the founders of Dogechain created the Dogechain bridge.
The idea of a bridge in cryptocurrency isn't new. Dogechain bridge was built on that concept to find a way for Dogecoin users to port and use their $DOGE in the new blockchain.
How the Dogechain bridge works is that when you send $DOGE, a multi-signature smart contract keeps the $DOGE in escrow and then mints its equal in $wDoge. So, if you send 200 $DOGE, you'll get 200$wDOGE which you can then use to access DeFi, buy NFTs, or use DApps.
You should note that Dogechain has a minimum amount of 100 $DOGE you can send over using the Dogechain bridge. Anything less than 100 $DOGE wouldn't fulfil the requirements for the smart contract conversion of $DOGE to $wDOGE.
Beyond the immediate ability to use Dogecoin on an EVM blockchain, this Dogechain bridge almost completely erases the barriers to entering DeFi and NFTs for holders of the famous memecoin.
It also means more development and growth for Dogechain. Developers can build DApps, Metaverse, GameFi, and digital marketplaces, while Dogecoin owners can interact with Dogecoin on those apps.
Concerns over Dogechain bridge
The concerns around the bridge converge on one point - security. However, Dogechain says it has this under control. Although they won't be using Polygon's security measures, they are prepared to ensure secure transactions for users.
Dogechain is just a few months in and has already seen massive interest. As of now, more than 200 million dollars worth of Dogecoin has gone through the bridge. Although this presents as only 2.5% of all the $DOGE in existence, it is still a great start.
As more people explore and benefit from this new ecosystem, more will be excited to join. It's just a matter of time.
Author: Ekele Jinanwa
Ekele is a cryptophile who enjoys learning and writing about the crypto industry. She is passionate about knowing and teaching others about the opportunities crypto offers.