IOHK CEO and Cardano founder Charles Hoskinson has revealed he believes bitcoin is at a significant disadvantage to the rest of the cryptocurrency space because of its slow speed, and could fall behind other projects using Proof-of-Stake (PoS) consensus algorithms.
While speaking with computer scientist Lex Fridman, the Ethereum co-founder argued that blockchains using a PoS consensus algorithm can offer superior transaction speeds and more functionality than Bitcoin, adding that bitcoin’s problem is “that it is so slow.”
Hoskinson compared the flagship cryptocurrency to “the mainframe programming of the past,” and even claimed that the “only reason it’s still around is because there is so much invested in keeping it around,” before adding Bitcoin’s Proof-of-Work consensus algorithm has to be upgraded.
The founder of Cardano added that Bitcoin’s programmatic utility lags behind that of its competitors, and criticized the cryptocurrency’s community for hesitating in pushing out new innovations to the base Bitcoin network. He then addressed BTC’s second-layer scaling solutions such as the Lightning Network and claimed these are “highly fragile.” He added:
It has the network effects, it has the brand name, it has the regulatory approval. But, there’s no way to change the system, even correcting obvious downsides in that system.
During the interview, he also said that the network he helped create, Ethereum, has grown to rival that of Bitcoin as it has a development culture that embraces innovation, as Cointelegraph reports. He noted that ETH is “getting to the point where it has the same network effect as Bitcoin,” and added:
If I had to bet between just those two systems, I’d say nine times out of ten Ethereum is going to win the fight against Bitcoin.
Hoskinson added that dominance in the cryptocurrency market is notably not only between these two cryptoassets as several others are competing for market share. One of the blockchains he named was Cardano.
As CryptoGlobe reported, IOHK has recently announced the launch of Alonzo Blue 2.0’s testnet for the cryptocurrency’s blockchain, in another step forward to bringing smart contracts to Cardano.
The Cardano network has hit a new milestone last month, as one million wallets have now been created on it. The milestone was reached at a time in which thousands of new wallets are being created every day as presumably more users join the network in anticipation of the smart contract rollout.
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