Dogecoin Technology
Nicoll and his compatriots are reinvolving themselves at a time when Dogecoin’s price is howling at the moon, but would they be turning their attention to it if porn stars, rappers and the world’s richest man weren’t tweeting about it?
“We’ll always prioritize security. I’m not going to say that [development] won’t slow down again, but we will always be there looking for security issues to make sure the software is kept up to date,” Nicoll said when asked if new DOGE holders should be leery of Dogecoin’s spotty development.
Looking past Dogecoin’s technical architecture (which, to be clear, does not have any gaping holes), the network’s hashrate is roughly 300 terahashes. To put this into perspective, Bitmain’s latest and most powerful miner produces over 50 terahashes at peak performance and Bitcoin’s hashrate is roughly 161 exahashes (or 161,000,000 terahashes).
But Dogecoin uses the Scrypt hashing algorithm instead of Bitcoin’s SHA-256, which is supposed to be ASIC resistant, meaning Dogecoin is meant to be mined with computer processors (CPUs) or graphics cards (GPUs), resulting in a lower hash, though ASICs like the Antminer L3+ run Skrypt.
It’s theoretically easy (compared to Bitcoin or Ethereum) to 51% attack Dogecoin to cheat its network to steal coins from others. Some back-of-the-napkin figures crunched by CoinDesk suggest that it would cost roughly $8 million to attack the Dogecoin network for a week (using Antminer L3+ ASICs).