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Elon Musk, tech tycoon and CEO of electric vehicle maker Tesla, suggested that he might want to consider creating a new cryptocurrency if Dogecoin doesn’t get the necessary features with future updates. Musk said this in response to a tweet on Saturday, where a Twitter user asked why Musk is not building a new cryptocurrency with the right features from scratch.
Musk said he would do it “only if Doge can’t do it,” adding that creating another digital currency would be a “headache.”
Only if Doge can’t do it. Big pain in the neck to create another one.
— Elon Musk (@elonmusk) May 16, 2021
In an earlier tweet, the Tesla CEO also said that he would like Dogecoin to increase its block speed by 10x, increase its block size by 10x, and reduce transaction fees by 100x. Musk also said recently that he is working with the coin’s developers to improve its performance.
Cryptocurrency transactions are processed by including them in so-called blocks, where they are stored forever. Changing how this is done can bring several benefits to the network. Less block time means blocks can be created more often and transactions can be processed faster. A larger block size will allow more transactions to fit into one block. And with lower fees, transactions will be cheaper.
However, these changes also have their drawbacks. With shorter block times and larger block sizes, the computing power and memory required to run the network increase, potentially reducing Dogecoin’s decentralization, forcing fewer people with more resources to maintain the network. While lower fees would theoretically reduce the incentive for miners to protect the network, this is not a straightforward conclusion. With other changes made to the network, the coin will be able to support a lot more transactions, and this in turn will keep the real incentive at about the same level.