After the widely publicized purchase of Twitter (NYSE: TWTR) by Tesla (NASDAQ: TSLA) CEO Elon Musk, the founder of Cardano, (ADA) shared his thoughts on how the social network could be made decentralized using blockchain and cryptocurrencies.
Indeed, Charles Hoskinson explained how Dogecoin (DOGE) and Cardano could be deployed to resolve some of the current social media issues, such as profile verification, in a YouTube video published on November 6.
In his view, social media networks “want to maximize user acquisition,” which is why “they make it very easy to follow this flow so you can get as little friction as possible.” However, “the problem with that flow is that you end up getting lots of false accounts or inaccurate accounts.”
Solving verification issues
According to Hoskinson, this is where blockchain steps in; he highlighted Cardano is working on neutral cross-chain identity tools so “you can store these on a blockchain like the Cardano blockchain or Dogecoin” and use them with a verification-as-a-service API ecosystem.
He further specified that “DOGE would not be able to provide any notion of any of this infrastructure” because “it’s a fork of Bitcoin,” so “this needs to be a side-chain and it needs to be a web 2.5 application.”
In the words of Cardano founder:
“What’s nice about it is if you structure the security model in just the right way, you get immutability, you get censorship resistance because it has the same security properties of the main ledger. It’s a blockchain, so you get auditability.”
All the potential roles of DOGE
What’s more, Hoskinson highlighted that DOGE could serve as an “advertising token and the veracity token and the marketplace token for prediction markets and the token required to issue NFTs (non-fungible tokens) and all these types of things. (…) DOGE could basically be the currency of a social network.”
Finally, the Cardano founder concluded his presentation with the idea that stake pool operators (SPOs) who would be maintaining this ledger:
“They would be paid block rewards just like the DOGE miners are currently paid block rewards, but obviously those now go to the network. So if you hold the ADA, then in addition to getting ADA rewards, you’d also get DOGE rewards as well.”
Meanwhile, the Twitter acquisition story seems to no longer give wings to the dog meme token, which at press time was changing hands at the price of $0.115, down 7.64% on the day, as well as 4.08% across the week, but still notching double-digit monthly gains, as per data retrieved by Finbold on November 7.