Blockchain developers QED Protocol and Nexus are preparing to launch a Layer 2 (L2) scaling solution designed to bring smart contract functionality to the Dogecoin network, according to an announcement on Sept. 26.
The planned L2, a zero-knowledge virtual machine (zkVM), is intended to “allow the world’s oldest and most popular memcoin network to compete in the smart contract space with blockchains like Ethereum and Solana,” QED and Nexus said.
Dogecoin operates on a proof-of-work (PoW) blockchain network similar to Bitcoin, but with less computationally intensive transaction verifications and no upper limit on the total supply of Dogecoin (DOGE). Due to its significant similarities to Bitcoin, the Dogecoin network does not support smart contracts.
Launching a high-performance zkEVM on Dogecoin will help “make the leading memecoin’s mainnet ‘stronger than all others,’” QED and Nexus said.
Source: Dogecoin
In 2024, the memecoin market has become one of the fastest growing sectors in the crypto space.
Smart contract platforms for memcoins are often highly profitable, with Pump.fun's revenue on Solana exceeding $100 million in August.
The goal of Dogecoin zkVM is to “enable tools that will allow developers to build a wide range of high-performance applications on the network, which could include everything from decentralized exchanges to NFTs,” the announcement said.
Originally launched in 2013 as a satirical parody of Bitcoin, DOGE now has a total market cap of about $17 billion, according to CoinMarketCap. DOGE is widely considered the first “memecoin,” but is also used for micropayments and tipping.
The QED protocol has already developed a zkVM-based scaling solution for the Bitcoin network, designed to support smart contracts and low-latency transactions. Nexus operates the Nexus zkVM, a modular scalable network using zero-knowledge proofs.
Scaling solutions based on proof-of-work (PoW) blockchains like Bitcoin are on the rise. According to DefiLlama, the total value locked (TVL) on Bitcoin’s L2 grew to around $1.4 billion in September.
“What we’re doing with Dogecoin can certainly be replicated in other ecosystems… thanks to recent breakthroughs in zero-knowledge proof technologies,” said Daniel Marin, CEO of Nexus.
