Dogecoin Labs launches: 5 things to know

The teams behind a Dogecoin wallet, an application network and merchant payment tools are merging into a new company, Dogecoin Labs, to give DOGE more everyday uses. It was formed in partnership with the Dogecoin Foundation and will be led by Jordan Jefferson, founder of MyDoge and DogeOS, as CEO, according to an announcement reported by CoinDesk. DOGE was trading around 8.2 cents, up 3.9% over 24 hours, at the time of the report.

Three products under one roof

Dogecoin Labs will own and operate MyDoge (a wallet), DogeOS (a network for applications) and Such App (tools for merchants). The idea is a loop: developers build apps on DogeOS, holders discover them in MyDoge, and businesses accept DOGE through Such App.

The wallet is the biggest piece

MyDoge says it has passed 500,000 users without paid marketing. Its new V3 update connects the wallet to applications being built on DogeOS. The announcement does not say how many of those users are active or have tried the apps.

Merchant payments already work — in beta

Such App's beta supports invoices and in-person QR-code payments. Its connection to DogeOS is still only planned.

DogeOS is not finished

DogeOS opened a public test network on Sept. 30, letting developers build Ethereum-style lending services, exchanges and games with test DOGE. Dogecoin itself only moves coins, so these apps run on a separate system — similar in spirit to the layer-2 networks described in our DeFi explainer. Three weeks on, DogeOS's public guide still lists its featured apps as "coming soon".

The bigger open item is security. DogeOS wants Dogecoin's own network to verify mathematical proofs that its apps ran correctly, but the rule change needed for that is still a draft. Until it ships, users must trust DogeOS's chosen operators and hardware. For how Dogecoin's mining-based chain is secured in the first place, see proof of work vs proof of stake.

Who does what

The Dogecoin Foundation and its commercial arm, House of Doge, are contributing intellectual property and developers. The foundation keeps its open-source, advocacy and community role, while Labs focuses on products and commercial deals. As with any new token ecosystem, watch out for look-alike apps and "airdrop" offers — our guide on how to spot crypto scams explains the common tricks.