Main navigation

Dogecoin (DOGE) Mania Might Threaten Litecoin (LTC): Analyst Lucas Nuzzi

News
Fri, 02/12/2021 - 15:36
article image
Vladislav Sopov
Seasoned cryptocurrency researcher Lucas Nuzzi explained why Dogecoin (DOGE) mania puts Litecoin (LTC) under threat - and how both networks can resist possible attacks
Dogecoin (DOGE) Mania Might Threaten Litecoin (LTC): Analyst Lucas Nuzzi
Cover image via stock.adobe.com
Read U.TODAY on
Google News
Contents

Cryptocurrency analyst Lucas Nuzzi, cofounder and advisor of Digital Assets Research, shared a possible design of an attack against Dogecoin (DOGE) and Litecoin (LTC) networks, as well as a set of emergency safety recommendations.

Memetic coins have no miners

According to Mr. Nuzzi, in 2014, Dogecoin (DOGE) network lacked miners, becoming vulnerable to 51% attacks. Developers implemented an auxiliary proof of work (AuxPoW) update: it became possible to merge Dogecoin (DOGE) mining with that process of similar networks.

Doge pump threatens Litecoin: here's why
Image via Twitter

The solution was controversial from day one: Dogecoin (DOGE) mining became highly dependent on bigger mining entities. Thus, today, 95 percent of Litecoin (LTC) mining work is carried out by Litecoin (LTC) miners.

While this trade-off used to seem more than reasonable during the "just-for-fun" years of Dogecoin (DOGE), it evolved into a serious problem amidst its unparalleled rally.

Related
Dogecoin (DOGE) Comes Close to Flipping XRP After Soaring 1,000 Percent in 24 Hours

A 1,200 percent upsurge in the Dogecoin (DOGE) price resulted in a mediocre 15 percent spike in its hashrate, which is a reliable indicator of network security. Thus, both Litecoin (LTC) and Dogecoin (DOGE) became far more vulnerable to attacks.

The last resort for assets from 2013

Mr. Nuzzi suggested a hypothetical design for this malicious interference. It includes a 51% attack on Litecoin (LTC) to prevent large-scale transactions from being included in the blockchain.

Here's how LTC and DOGE can be attacked
Image via Twitter

Considering the insane rally of the Dogecoin (DOGE) price, the profits from attacking it increase, so the whole concept becomes attractive for attackers.

Mr. Nuzzi strongly recommends Litecoin (LTC) and Dogecoin (DOGE) to increase confirmation time. With confirmation time set at 24 hours, it would cost $2 million to initiate an attack of this type.

Meanwhile, at the end of the day, Dogecoin (DOGE) network looks immature in terms of technological progress from the 2021 point of view. Thus, the researcher underlines the risks of going "all-in" on a Shiba Inu coin:

This lack of maturity and seriousness is fun, it's part of the meme.. But if a ten-billion-dollar-marketcap Dogecoin is your stepping stone into crypto, you have to be careful. Don't put your life savings in a meme.

article image
About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)