Cardano Founder Hoskinson Critiques Ethereum’s Long-Term Viability
In a recent interview, Cardano founder Charles Hoskinson criticized Ethereum's long-term viability due to its reliance on rollups and external scaling layers, claiming this model will weaken the base chain.
Key Points from Hoskinson's Critique
- Ethereum's economic incentives are misaligned between Layer 1 (L1) and Layer 2 (L2) solutions.
- Rollup teams may migrate to other networks if better opportunities arise, diminishing Ethereum’s network effects.
- The rise of Bitcoin DeFi could draw substantial value away from Ethereum, potentially surpassing its market cap.
- Large tech companies and financial institutions may develop their own infrastructures independent of Ethereum.
- Technological advancements like zero-knowledge proofs could shift computation away from shared-state blockchains.
- Hoskinson acknowledged Ethereum's achievements but emphasized that successful rollups may undermine L1 as an economic hub.
- He previously stated that Ethereum might not survive beyond 10 to 15 years due to L2s absorbing its advantages.
- Cardano’s design aims to target Bitcoin-centric DeFi, focusing on security and compliance for institutions.
As of now, ADA is trading at $0.89.
