According to a blog post published by BluePepper Research laboratories on Tuesday morning, Dogecoin's first bridge to Ethereum, "wDoge bridge," is currently in a developed stage of development and is expected to go try living by the end of 2022. The tower, which is modeled after the most secure blockchain bridge WBTC, will allow users to transfer DOGE from the Dogecoin blockchain to the Ethereum blockchain and back.
In addition, it will introduce Dogecoin to smart contracts, allowing "Dogecoins on the Ethereum blockchain to be used in Turing-complete smart contracts, DeFi protocols, NFT marketplaces, and wallets with fancy features," according to the blog.
Due to Dogecoin's limited scripting language, users are unable to execute smart contracts or implement various decentralized protocols. Since the development of the bridge began in 2017, Engineers have struggled with Dogecoin's source code, adjusting its transactional compatibility with Ethereum and calculating the opportunity cost of the project.
Safety was also a serious worry for said new bridge, as blockchain bridges such as Axie Infinity's Ronin bridge were attacked in March, resulting in the loss of over $620 million. Recent Chainalysis data reveals that approximately $1 billion worth of crypto assets were stolen from blockchain bridges in 2022, making them the most dangerous protocols with in DeFi industry.
Bluepepper also stated that it intended to construct an ecosystem on top of the bridge, requesting liquidity from various parties including Whales and Exchanges. Once finished, the bridge will include a governing authority (DAO), a custodian to safeguard all DOGE used to mint wDoge, and a merchant to facilitate the minting and burning of wDoge.
Despite Dogecoin's explosive growth, the Dogecoin community has long awaited the launch of the bridge. Musk has stated on multiple occasions that he is collaborating with Dogecoin developers to improve the blockchain's code. Musk has been one of the most vocal proponents of the cryptocurrency.
AMC, Tesla, Newegg, airBaltic, and the Dallas Mavericks, owned by Mark Cuban, have begun accepting Dogecoin payments over the past year. Once the aforementioned bridge goes live, Dogecoin transactions and general blockchain activity are expected to increase exponentially alongside the price.
Since reaching an all-time high in May 2021, Dogecoin has experienced a disconcerting decline, losing roughly 90% of its value to trade at $0.07 as of this writing. Despite this, the cryptocurrency has maintained the tenth position by market capitalization, demonstrating investors' confidence in the blockchain.