- Memetic coins have no miners
- The last resort for assets from 2013
Cryptocurrency analyst Lucas Nuzzi, cofounder and advisor of Digital Assets Research, shared a possible design of an attack against Dogecoin (DOGE) and Litecoin (LTC) networks, as well as a set of emergency safety recommendations.
Memetic coins have no miners
According to Mr. Nuzzi, in 2014, Dogecoin (DOGE) network lacked miners, becoming vulnerable to 51% attacks. Developers implemented an auxiliary proof of work (AuxPoW) update: it became possible to merge Dogecoin (DOGE) mining with that process of similar networks.
The solution was controversial from day one: Dogecoin (DOGE) mining became highly dependent on bigger mining entities. Thus, today, 95 percent of Litecoin (LTC) mining work is carried out by Litecoin (LTC) miners.
While this trade-off used to seem more than reasonable during the “just-for-fun” years of Dogecoin (DOGE), it evolved into a serious problem amidst its unparalleled rally.
A 1,200 percent upsurge in the Dogecoin (DOGE) price resulted in a mediocre 15 percent spike in its hashrate, which is a reliable indicator of network security. Thus, both Litecoin (LTC) and Dogecoin (DOGE) became far more vulnerable to attacks.
The last resort for assets from 2013
Considering the insane rally of the Dogecoin (DOGE) price, the profits from attacking it increase, so the whole concept becomes attractive for attackers.
Meanwhile, at the end of the day, Dogecoin (DOGE) network looks immature in terms of technological progress from the 2021 point of view. Thus, the researcher underlines the risks of going “all-in” on a Shiba Inu coin:
This lack of maturity and seriousness is fun, it’s part of the meme.. But if a ten-billion-dollar-marketcap Dogecoin is your stepping stone into crypto, you have to be careful. Don’t put your life savings in a meme.