Dogecoin and Litecoin Should Merge, Says Charlie Lee
Lee Suggests Merge Mining Dogecoin with Litecoin
Charlie Lee, the founder of litecoin, is proposing that the altcoin and dogecoin be merged. Lee is of the opinion that merging will boost the mining capabilities of the two cryptocurrencies. However, his counterpart Jackson Palmer, the creator of the tipping currency, has taken a different stand.
According to Lee, litecoin and dogecoin will be prone to cyber attacks when the cryptocurrencies become unprofitable to mine, or dig in the case of dogecoin. As he said in a comment on dogecoin subreddit, bringing the two altcoin communities together will help both parties create a defence mechanism that can withstand a 51% attack.
About “51% Attack”
In cryptocurrency, 51% attack refers to a situation when one entity holds half of the mining share and thus is in full control of the system. Under this situation, the entity can double-spend his holdings, owing to the fact that this entity can influence the blockchain at will.
The pure proof-of-work system is known to be prone to this attack as a result of monopoly of the mining share. The system is designed to exponentially decline the rewards from mining. Once the rewards decline, people lose the incentive to continue mining and thus the number of miners decline. The fewer the number of miners, the higher the chances of 51% attack.
On the other hand, with proof-of-stake system, the holdings of an individual entity determine the number of coins that the entity can generate. Let’s say you hold 2% of the currency, under the system you will generate 2% of all the system’s coin blocks. This makes monopoly more expensive and locks it out of the system.
Cryptocurrencies that uses the proof-of-work system alone are more vulnerable to attack than those using the hybrid system of both proof-of-stake and proof-of-work. This is because under proof-of-work, miners with powerful machines stand a greater chance of owning large shares.
Dogecoin Still Young
Though litecoin is the second largest currency by market capitalization, Jackson Palmer does not welcome the merger news. Since dogecoin is hardly five months, Palmer believes that what dogecoin needs is time. He therefore does not see merged mining as the solution to the threat concerns.
Should the two altcoins merge, then it would require either dogecoin or litecoin to accomplish a “hard fork”, which Lee thinks should be done by dogecoin. He says hard forking litecoin is just too dangerous to try.
So what do you think?
If merge mining dogecoin and litecoin would help the two currencies overcome the risk of monopoly, why shouldn’t they both embrace it? Merge mining does not mean that litecoin will swallow dogecoin, or the other way round. It only means using one process to mine the two altcoins. Otherwise, complete merger of the two altcoins would be virtually impossible as dogecoin as distinguished itself as a tipping currency, whereas litecoin is quickly becoming bitcoin’s best alternative.
Going by Charlie Lee’s opinion, do you support dogecoin and litecoin merger?