Dogecoin is a copy of the Bitcoin blockchain with slight modifications. When we send Bitcoin from one wallet to another wallet, our transaction must be confirmed by the miners and added to the Bitcoin public ledger.
Bitcoin and Dogecoin both have a block size of 1 MB. But, the Bitcoin blockchain confirms blocks every 10 minutes, whereas Dogecoin confirms blocks every 1 minute. Thus, the Dogecoin transaction is 10 times faster than Bitcoin. However, in the real world scenario, both cryptocurrency is useless as discussed in this article.
We can find the theoretical transaction number per unit time of a cryptocurrency using the following formula:
(Block Size Limit) / ((Lowest Possible Transaction Size) x (Block Time In Seconds))
Using this formula, we find that the Bitcoin network can process 7, and Dogecoin can process 70 transactions per second.
- Bitcoin: (1024x 1024) / (257 x 60 x 10) = 6.8 (10 minute block time)
- Dogecoin: (1024x 1024) / (257 x 60) = 68 (1 minute block time)
However, due to network propagation and other reasons, practically, Bitcoin can process only 3-4, and Dogecoin can process 40 transactions per second. Still, Dogecoin is 10 times faster than Bitcoin.
There is a misconception in the crypto community that VISA can process 1700 transactions/second, which is not valid. According to the VISA fact sheet, the VISA network can process more than 65,000 transactions per second.
According to the US Census Bureau, there are 330 million people living in the United States, and there are 7,750 million people in the world.
In a single day, Bitcoin can process 4 x 60 x 60x 24 = 345,600 transactions (practical 4 transfers per second).
So, if every American adopts Bitcoin, each person will be able to complete 1 transfer in every 330,000,000 / 345,600 = 954 days (2 and 1/2 years) on the Bitcoin network.
If everyone in the world wants to use Bitcoin, they will be able to complete 1 transfer every 7,750,000,000 / 345,600 = 22,424 days or 1 transaction per 1 person in 61 years.
As Dogecoin is 10 times faster than Bitcoin, if every American starts using Doge, the limit is 1 transfer per 1 person in 95 days or 3 months.
If we are practical, even though Dogecoin is faster than Bitcoin, there’s no way Bitcoin or Dogecoin can be used realistically in a real-world scenario as a currency. Both cryptocurrencies have scalability issues.