Going Where No Shiba Inu Has Gone Before
On February 5, 2018, Truebit brought Dogecoin to the Ethereum blockchain. The company was founded with an aim to bring scalable computation to blockchains, not just doge and ether. Speaking about the technology, the co-founder Jason Teutsch had said:
“The idea is to move computations off-chain because right now there isn’t enough bandwidth to handle the type of computations that the people want to do off-chain, on-chain or the volume of transactions that people want to be able to handle on-chain. [Truebit] looks for really big transactions that are computationally intensive. Right now, a smart contract can only run for a fraction of a second on Ethereum.”
The Dogethereum bridge also formally marks the release of Truebit. Dogethereum is the bridge between two cryptocurrencies, Dogecoin and Ethereum, and aims to enable the inter exchangeability of dogecoins from the Dogecoin blockchain to ether tokens on the Ethereum blockchain. This exchange between the two cryptocurrencies comes with its own set of advantages as well. Principally, leveraging smart contracts.
Truebit thus enables trustless smart contracts to perform any computational task securely. A smart contract in Dogethereum will allow Ethereum to check Dogecoin’s Scrypt proof of work.
A thread appeared on the dogethereum subreddit discussing how hard would it be to create a chain for dogecoin and ethereum. After this thread gathered some amount of attention, Ethereum founder Vitalik Buterin acknowledged that it would initially take lots of gas to keep such a network running but also pointed to a theory on how this two-way peg could work.
Dogecoin and ethereum developers then went on to create a dedicated Skype room to investigate further what this fully decentralized side chain would work like and ultimately decided that the aim was to develop an ethereum based token that kept the value at 1:1 for a dogecoin and could be used to run smart contracts. The Dogecoin community then went ahead to set up a DAO with a bounty of initial 100 ETH from the personal wallet of the developer, for anyone who could build a practical model of this so-called ‘Dogethereum’ bridge.
This smart contract is now said to be worth $1.2 million of ether after others contributed their ether for the cause. The bounty will be released only when a minimum of five of the eight DAO members approve it by signing in with the private keys of their ethereum wallets.
Ethereum / Dogecoin collaboration https://t.co/Nu5r65Y2p3
— Vitalik Buterin (@VitalikButerin) December 17, 2015
Bitcoin, ethereum and other Nakamoto based cryptocurrencies work on blockchain technology. For the uninitiated, the blockchain is a public ledger of financial transactions. New transactions enter the blockchain and are referred to as blocks. Miners in the network provide their computational power to keep the network running.
This process of verifying new transactions on the blockchain using a mathematical proof of work algorithm is thus called mining. The first miner to confirm any new transaction is awarded new coins as a reward for successfully mining the block. New blocks are continuously added to the blockchain over other blocks, and the mining of cryptocurrencies is continued.