According to the chief executive and founder of Celsius Alex Mashinsky, Dogecoin will probably transition from a proof-of-work protocol to proof-of-stake. Mashinsky said in a brief statement during a webcast “I’m going to make a prediction. In the next two years, dogecoin is going to migrate from proof of work to proof of stake.” Proof of stake means instead of committing electricity to run computers and try to win a contest, people will stake actual coins. But how does this all work? Well, you basically lock a certain amount of funds on an everyday computer that is connected to the network. Your computer is called a node in technical terms and your locked funds are your stake. Once your stake is in place you take part in the contest of which node will get to forge the next block. Under the proof-of-stake protocol, miners will be randomly chosen to validate a transaction. And to achieve this, they must commit a certain number of cryptocurrency to the blockchain.
According to cryptocurrency experts, by randomly selecting the miners, the race to solve the complex puzzle, which proof-of-work uses, lowers high electricity and hardware costs and disheartens bootleg behaviour such as double-spending and controlling the network. Proof-of-work is used by bitcoin BTCUSD, -3.94% to validate transactions on the blockchain and that framework has been castigated for using a tremendous amount of energy to verify transactions on the digital ledger. Mashinsky’s statement came after Tesla’s CEO Elon Musk revealed on Twitter that Tesla has suspended vehicle purchases using bitcoin. Musk: “We are concerned about the rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”