Dogecoin may be a scam, but the underlying technology of the blockchain is not

ELON 2025-10-8 14:27 53802人围观 DOGE

How profitable a thing is depends on how many people say it is a scam. When Jack Ma first started working on Taobao, he was called a liar by many people. We can't say whether he is a liar or not, but it can be seen at a glance that Taobao is very profitable.

In today's financial circle, the word "scam" is most talked about in the currency circle. Bitcoin has skyrocketed in 2020, soaring 10 times in a year, and the price of a single coin exceeded US$50,000. Dogecoin is even more enthusiastically welcomed by Iron Man Musk, who wants to use a rocket to take Dogecoin to the moon.

Last weekend, Musk introduced Dogecoin, which he has always been enthusiastic about, to the audience on Saturday Night Live. During the host's repeated ridicule of Dogecoin, he and the host complained that Dogecoin was a "hustle."

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From last weekend to now, the news that "Musk admitted that Dogecoin is a scam" has continued to ferment. After Musk said "yeah its hustle", the price of Dogecoin fell. Half an hour before the show started, Dogecoin was trading at about $0.718142. Shortly after the broadcast, Dogecoin fell in the short term, and then the decline expanded, once falling nearly 40%, with the lowest price at $0.446146.

However, Saturday Night Live has always been a spoof as a comedy show. When the host and Musk said that Dogecoin was a scam, it was just a joke. At the end of the segment about Dogecoin, Musk jokingly shouted the Dogecoin slogan "To the moon".

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Binding Musk’s Dogecoin

Perhaps to save the market for Dogecoin, or perhaps in response to the slogan To the moon, on May 10, Musk’s SpaceX officially announced that it would accept Dogecoin as an exclusive payment method for the launch of the lunar satellite DOGE-1. DOGE-1 is a cubesat that uses its onboard cameras and sensors to capture "lunar space intelligence." It will be provided by Geometric Energy and use Dogecoin as the only payment method, and will be launched aboard the Falcon 9 launch vehicle in the first quarter of 2022.

When the rocket takes off, the currency value will inevitably reach the moon. From the beginning of 2020 to the present, Dogecoin has increased more than 200 times, far exceeding the increase of Bitcoin, the number one cryptocurrency. Its market value once exceeded US$90 billion, while SpaceX’s valuation was only US$74 billion.

Although Dogecoin is extremely popular, it seems that Musk is setting up his own stage and singing his own show.

Dogecoin was founded in 2013 by software engineers Billy Markus and Jackson Palmer. The original intention was to use the name Dogecoin and the cute image of the Shiba Inu to satirize the cryptocurrency craze and its followers at the time.

Dogecoin has received widespread attention on Reddit since its release, but Dogecoin is also a cryptocurrency after all. The more attention it receives, the higher its investment value will naturally be. This also deviated from the original intention of the two founders, causing them to gradually abandon Dogecoin. After that, Dogecoin was targeted by technology trader Musk, who sang bullishly all the way, from a price of a few tenths of a cent to a maximum of 0.7 US dollars. Musk has also jokingly called himself the father of Dogecoin many times.

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Is it Iron Man or Manipulator?

Since Musk started paying attention to Bitcoin, almost every tweet he made about the digital currency would affect the price of the currency. Just earlier today, Musk announced that Tesla would suspend accepting Bitcoin payments because Bitcoin mining is not environmentally friendly. As soon as this announcement came out, Bitcoin fell by about 10% in less than two hours.

Trading Dogecoin is also a fan economy. Through his status as a technology upstart, he promotes Dogecoin through social networks and various channels, and even uses SpaceX's payment method as a means to force Dogecoin.

Of course, we don’t know whether Musk is really optimistic about cryptocurrency and wants to be the Iron Man who fights against Wall Street and regulation, or whether he is a trader who wears a hypocritical cloak and arbitrages money. But in the files of US financial supervision, Musk is indeed a tainted person.

In 2018, Musk claimed on Twitter that he would privatize Tesla at a price of $420, and published a letter to Tesla employees on the official website, confirming that this was not drunken nonsense. In the following days, Tesla’s official website also updated the progress of the privatization. However, just in the third week after the privatization news was released, Tesla once again issued news claiming that it would remain a listed company. This operation directly put Musk on the blacklist of the U.S. Securities and Exchange Commission (SEC).

As soon as the news of the privatization came out, Tesla's stock price immediately surged 7%. In his statement on privatization, Musk said that he had communicated with the Saudi Arabian sovereign wealth fund on "Tesla privatization" many times, and reached a consensus with the fund in 2017 to promote the privatization of Tesla.

At that time, the sovereign fund was worth US$250 billion, so Musk had enough funds to guarantee the transaction price of US$420. However, when the outside world confirmed this to the fund, they did not give a definite answer.

As a result, the SEC launched a lawsuit against Musk, accusing him of securities fraud. Afterwards, there was news in the American media that Musk’s behavior may just be to please his girlfriend with the number 420, which represents World Marijuana Day.

The lawsuit eventually ended in a settlement, with Musk and Tesla each paying a $20 million fine to the SEC. As a result, Musk stepped down as chairman of Tesla and promised not to hold this position again within three years.

In his introduction to Dogecoin on Saturday Night Live, Musk carefully emphasized its lack of financial regulation. It is also unclear whether this was a safer setting after being fined tens of millions of dollars.

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Are cryptocurrencies the future or a scam?

At the beginning of its birth, the value of cryptocurrency can be said to be from scratch, but today, its value is increasing like an out-of-control beast. Before Dogecoin, there were Bitcoin and Ethereum. At the beginning of 2020, the price of Bitcoin was around US$5,000, and today it has exceeded US$50,000. After Dogecoin, the popular "Shiba coin (SHIBA)" came out. SHIBA's total market value is only more than 10 billion, and the daily transaction volume is actually more than 10 billion.

So are these cryptocurrencies really all scams?

Cryptocurrencies such as Bitcoin are based on a decentralized consensus mechanism based on blockchain technology. Since each Bitcoin is calculated based on full data in a distributed ledger, it is difficult to counterfeit Bitcoin during the circulation process.

As a means of payment, Bitcoin has been accepted by many large e-commerce companies and even offline businesses. Its anonymous payment feature facilitates many gray and even black industry transactions. The application of Dogecoin at the payment level was originally a tipping and fundraising activity in the reddit community.

「The words "distributed ledger" are enough to illustrate the technical advantages of blockchain in transactions. However, due to the use of decentralized distributed databases and the anonymous payment characteristics mentioned above, these currencies are on the opposite side of the banking and financial systems that rely on centralized supervision systems.

With the continuous development of digital currencies, governments around the world have gradually increased their emphasis on blockchain. China, Sweden, the United Kingdom, and Singapore have all begun research into legal digital currencies.

In October 2019, Xi Jinping made important instructions to accelerate the innovative development of the blockchain industry at the 18th collective study session of the Political Bureau of the Central Committee. Since then, various ministries and commissions have launched blockchain-related policies and actions, including the National Blockchain and Distributed Accounting Technology Standardization Technical Committee organized by the Ministry of Industry and Information Technology. The National Development and Reform Commission has incorporated blockchain into new infrastructure. The Central Bank has issued the "Notice on Promoting the Application of Blockchain Technology Standards" and "Blockchain Technology Financial Application Evaluation Rules", and launched an internal closed pilot test of digital renminbi in Shenzhen.

Recently, the Digital Currency Research Institute of the People's Bank of China and the China Academy of Information and Communications Technology also announced two blockchain evaluation standards successfully established in the SG16 Distributed Ledger Working Group Q22. They are: "Function assessment methods for distributed ledger technology (DLT) platforms" and "Performance assessment methods for distributed ledger technology (DLT) platforms".

Four

Taking off the cloak of cryptocurrency, what else can blockchain do?

Cryptocurrency is what brought the word blockchain into people’s horizons, but what blockchain can do is not limited to currency circulation.

The previously popular NFT is one of the use cases. As a digital tag for collectibles, NFT can ensure the uniqueness of the collection, thereby greatly increasing the collection value of digital artworks.

Not long ago, Instagram artist Beeple just sold an NFT-tagged digital art painting through Christie's. The JPG picture sold for nearly $70 million.

The NBA market is also a fan of NFT. NBA Top Shot previously announced that the NFT-based animation of James dunking against the Kings sold for US$208,000. At the same time, NBA teams have also launched a series of NFT-based medals, videos and other collectibles.

In addition, the application of blockchain in industrial scenarios may be more valuable.

Blockchain + mechanism model sharing: The establishment of mechanism models, data models, and business models at the industrial Internet platform layer requires a large-scale collection of basic data from multiple enterprises, multiple production lines, and a large number of production equipment to accumulate and precipitate. (Such as: asset management model, product development and design model, process control model, operation and maintenance model, process model, resource allocation model, etc.)

Due to the security and confidentiality sensitivity of the enterprise's core production data upload platform, most enterprises currently do not want to upload core data to the platform layer in the general industrial Internet platform (except for the private industrial Internet platform of a single enterprise).

On the other hand, the precipitation and application of mechanism models, data models, and business models have great advantages and necessity for optimizing industrial manufacturing, logistics, process improvement, resource allocation, quality control, etc. This requires a network structure that can realize distributed model calculation and machine learning in the industrial Internet architecture, and then uses a model data sharing billing and incentive system to encourage multiple participants to jointly build industrial mechanism models.

Blockchain + security certification: With the development and evolution of the industrial Internet, a large number of industrial intelligent equipment, sensors, DCS/PLC, gateways, I/O modules, edge servers, micro data centers, etc. need to be connected to the industrial Internet platform. But it also brings about the problem of two-way security of production equipment, especially DCS/PLC-based production line controllers. Once network security problems occur, it will bring immeasurable losses to the enterprise.

Using a distributed digital identity authentication system based on blockchain technology, the edge computing center is used as an authentication and security verification node for enterprises, people and equipment to access, which can realize two-way identity verification between people and devices, devices and devices, and servers and servers, greatly reducing the security risks of edge layer interface data leakage and device control. At the same time, it can also meet the industrial data encryption storage requirements based on the PaaS layer of the industrial Internet and achieve privatized access to data.

Blockchain + Industrial Product Circulation Data Integration: Taking advantage of the transaction transparency, data tamper-proof, consistent information distribution and the application advantages of smart contracts in the network, relying on the industrial Internet platform to build distributed production, sales, and use data integration applications for industry chain participants such as manufacturing enterprises, logistics enterprises, tax departments, transportation departments, banks, channel providers, and customers within the platform. Realizing a safe and trustworthy value chain delivery network such as product quality control certificates, fund payment certificates, bill authenticity certificates, supply chain circulation certificates, channel sales certificates, and customer usage certificates is one of the main application directions of blockchain technology for core manufacturing enterprises at present.

Blockchain + production line quality control: The application of blockchain technology in product traceability, supply chain traceability, etc. is relatively mature. The anti-tampering characteristics of blockchain data are used to establish an authenticity verification network for the production, circulation and consumption of goods, effectively improving the brand value of goods. The application of blockchain technology in the manufacturing industry also has strong inherent needs in optimizing quality inspection collaboration efficiency, product quality control, and reducing failure rates. Especially in the distributed production and quality inspection environment of factories, it is very difficult to effectively establish a trustworthy quality assessment network.

By embedding blockchain distributed computing nodes in the factory edge computing center, distributed election of various operation and maintenance and quality control indicators can be realized without uploading all production data, providing real-time and dynamic data support for the optimal quality optimization of multiple production lines, multiple factories and multiple enterprises.

Through the data anti-tampering characteristics of blockchain technology, we can provide transparent and transparent production alarms for product quality failures, accidents and other data, and establish an automated mechanism for defining responsibilities and determining loss claims. Quality control issues of a production line can be automatically and tamper-proofly synchronized to upstream and downstream enterprises and supervisory nodes in the industrial chain through blockchain nodes in real time. At the same time, alarms can be broadcast to other production lines as needed. The blockchain-based quality control alarm mechanism can achieve low-latency, automated, low-cost, and tamper-proof high-quality production and safe operation and maintenance.

Of course, the quality traceability of spare parts and products in the industrial field is much more complicated than the traceability of goods in the supply chain. At present, blockchain technology is still in the preliminary exploration stage in terms of quality traceability of industrial products. Some large manufacturing companies are piloting similar programs in some factories and production lines.

Blockchain + manufacturing servitization: The American company Pearson Electronics is currently trying a new technology that uses the Internet of Things and blockchain technology to access data inside the machine, record machine output and calculate transactions and payments. Factory companies can use various carton erecting machines, sealing machines, palletizing machines, etc. without spending large sums of money to purchase these equipment. They only need to pay for the manufacturing services of the products.

In China, most factory production line upgrades involve purchasing equipment from equipment manufacturers and then assembly, debugging and application. Factory companies must bear all risks of equipment investment. However, for companies that urgently need production line machines but do not have access to funds, it is undoubtedly very difficult to directly purchase the equipment. Moreover, even if the equipment is successfully purchased and the production line is upgraded, there is no guarantee that the machine will have production tasks at all times. Once the machine is idle, it will inevitably cause a waste of productivity for the manufacturer.

How to obtain productivity conveniently and quickly when the equipment is needed, and how to provide the equipment to other factories for use when the equipment is idle has become an important issue in improving the production efficiency of factory enterprises. The use of production line leasing based on blockchain is an ideal solution. Blockchain is a secure and tamper-proof distributed accounting technology, which can be of great significance in accounting for rental equipment. Machine manufacturers will be able to realize intelligent leasing of production lines. It eliminates the upfront cost of machines, and manufacturers can invest funds in other areas where operations can be improved, such as new product development, making their business more flexible and creating a greater competitive advantage in the industry.

five

postscript
When blockchain technology was first born, it was not thought that it would become a financial means. One of the advantageous features of Bitcoin is "trust." The so-called blockchain scam is not that the blockchain is deceiving people, but that the technology is used by some people with ulterior motives as a drumming game. As governments tighten their oversight of digital currencies, such games should become increasingly rare and difficult to play.

Domestic blockchain technology research has always been divided into two factions, the currency circle and the chain circle, that is, the coin mining faction and the application faction. Mining coins is certainly profitable, but as the underlying technology, blockchain will only be more valuable if it develops more application scenarios. At present, the application scenarios of blockchain are still concentrated in the financial system, but blockchain still has a certain role in promoting digital transformation in the current industrial application field. We hope that in the tide of digital currency, people who really develop application technologies will not be overwhelmed. Regardless of whether this craze will recede, industrial applications can pick up a few technological pearls in it.

Reference links:

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