Businesses Accept Dogecoin More Than Lightning Network Payments – Trustnodes

Businesses Accept Dogecoin More Than Lightning Network Payments


Crypto, dogecoin, abstract

Lambos, cool watches, hotel bookings, all sorts of game related services, boats, shops, and a lot more is on offer in return for dogecoin.

Yes, the meme currency is still chugging along, moving more than $20 million worth of doge in the past 24 hours.

That’s 2x more than Lightning Network’s entire capacity of under $10 million with an average doge transaction being at $1,000, more than twice the maximum payment that can be made on the Lightning Network (LN) of 0.04 btc, worth currently around $400.

So buying a house is currently not quite possible on LN unless you want to make 1,000 payments to make one payment.

While in doge, three transactions of more than $1 million each were made in the past 24 hours. The fee was 1 doge, worth… well 1 doge.

Crypto acceptance by businesses, August 2019
Crypto acceptance by businesses, August 2019

Dogecoin is apparently a bit more useful in the real world than even XRP despite Ripple having a war chest of some $2.5 billion and giving millions of dollars for free to startups and companies.

While EOS raised billions to be accepted by even less businesses than ETC, let alone doge, with these merchant stats coming from Cryptwerk which claims they “hand-check” all companies submitted to their directory.

They claim more than 600 businesses accept dogecoin, including established companies like Travala and crypto only businesses that sell luxury goods, like fancy jewelry or cars.

On the other hand, a Lightning Network directory lists about 200 businesses but they seem to be more gimmicky things like pay to upload to IPFS.

They claim some local pizzeria accepts LN payments, but their site does not even show the bitcoin logo.

Some businesses do however accept LN payments, like Trippki, but Trippki accepts dogecoin too with seemingly a lot more businesses accepting doge than LN.

The inflationary cryptocurrency is actually meant to be used for payments, hence why it is inflationary.

Its supply of 120 billion will continue to increase, with doge generously given out for free for fun and so that people can see themselves how it all works.

Making it an educational tool, including in regards to mining and so on, because it works pretty much like bitcoin.

It even has the same blocksize limit as bitcoin of 1MB, but here blocks are every 1 minute, rather than ten minutes, giving it more capacity than bitcoin, but under the same general scalability constrains.

There is no tech invention here, but there is a monetary experimentation because after block 600,000 was mined on February 25th 2015, miners will receive 10,000 doge per block in perpetuity.

That means this isn’t necessarily quite an inflationary currency because new supply is not a percentage of current supply. Instead it is fixed. Thus as current supply increases, the percentage rate of new supply decreases to eventually near zero percent.

Because there will always be block rewards, increasing capacity by just increasing the blocksize or implementing things like flexcap could work here.

So dogecoin’s capacity can be considerable, while LN’s capacity is limited by basic economics because you need to put down bitcoin as collaterals of sort for the bitcoin to move in LN as this is basically 100% reserve banking. So simply said, you need to put down 2 bitcoin in order to be able to move 1 bitcoin, keeping the other in “reserve” until it is settled in an on-chain transaction.

So memecoin or not, it is a lot easier to pay with doge than with LN as you don’t need the extra step of opening or closing channels, then the third step of paying watchtowers to secure what can be called your payment agreement, then the fourth step of paying some liquidity provider to move the crypto, and all that while not even being able to pay for the latest iPhone which costs a bit more than $400.

With doge instead you just scan a QR code after mining the coins in university computers and so now you can pay the 10,000 dogecoin pizza and dream of what if you’re the next bitcoin pizza guy.

Image courtesy of architects that accept doge, Copyrights

Comments (3)

  1. This doesn’t sound right…

    “…because you need to put down bitcoin as collaterals of sort for the bitcoin to move in LN as this is basically 100% reserve banking. So simply said, you need to put down 2 bitcoin in order to be able to move 1 bitcoin, keeping the other in “reserve” until it is settled in an on-chain transaction.”

    1. That is how the LN works. The reason is because of its ability to open “disputes” on the network where people try to close a payment channel and steal your Bitcoin. So if you and I are making transactions and I close the channel prematurely to steal your Bitcoin, you can initiate a dispute to the watchtower.

      The watchtower in turn confirms the discrepancy in the transaction record and refunds your lost Bitcoin out of my reserved funds. But the downside to all that is where there is still a time limit restriction for how long you can wait to initiate a dispute. If you miss the window because you were sleeping, taking a shower, or whatever, then I get to keep the Bitcoin I just stole from you.

      So yeah, it’s all very much kinda convoluted in terms of with the whole LN thing. The Mighty Dogecoin is a much safer and more reliable bet to use with commerce…

  2. How much does it cost to 51 percent attack doge?

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