What Are the Risks of DRC-20 Token?

[Suba]

Since a week ago Dogecoin transactions have skyrocketed. This spike in transactions was due to the release of the DRC-20 token.

DRC-20 is a crypto token that runs on the Dogecoin blockchain, similar to BRC-20, BNB-20 and ERC-20, only different blockchains are implemented. The aim of the DRC-20 token is to exchange crypto and tokens on the DRC-20 service.

I personally think that the release of the DRC-20 Token will provide an opportunity for developers to create new tokens, but many developers will seek personal gain so that there will be a lot of DRC-20 tokens that are not of high quality. What do you think, will there be other risks?

 

[riberet19]

I think this is also happening with Litecoin if I'm not mistaken, in addition to as we already know in Bitcoin, there can really be opportunities and risks here with these tokens, but if they are going to keep the fees high and they are going to replicate the path of ethereum these chains, I am not very supportive.

 

[Suba]

It is very different from the Ethereum blockchain which is equipped with a smart contract so that token bearers do not need to store transactions and tokens on the blockchain, whereas in Bitcoin, Litecoin and Dogecoin carriers will store transactions and tokens on the main blockchain so that this will cause congestion.

 

[riberet19]

It is very different from the Ethereum blockchain which is equipped with a smart contract so that token bearers do not need to store transactions and tokens on the blockchain, whereas in Bitcoin, Litecoin and Dogecoin carriers will store transactions and tokens on the main blockchain so that this will cause congestion.

You yourself have said it, it is not similar to Ethereum is even worse because it stores information in the blockchain, I meant that it was similar in the cost of transactions, but well, I think this kind of thing is better to do it in other types of blockchains and not in those with POW.

 

[Suba]

You yourself have said it, it is not similar to Ethereum is even worse because it stores information in the blockchain, I meant that it was similar in the cost of transactions, but well, I think this kind of thing is better to do it in other types of blockchains and not in those with POW.

And of course the fees will go up or get higher, also for transaction confirmation it will take longer if the blockchain is getting denser. Maybe one day there will be a new update on the blockchain. .