Cardano Creator Highlights Ethereum and Bitcoin Weak Points
Cardano’s Chief Executive Officer Charles Hoskinson highlights Ethereum after the Merge. Charles also pointed out some weak points of Bitcoin.Charles Hoskinson, the originator of Cardano, has highlighted the weak points affecting the Ethereum Protocol after the historical Ethereum Merge. According...
- Cardano’s Chief Executive Officer Charles Hoskinson highlights Ethereum after the Merge.
- Charles also pointed out some weak points of Bitcoin.
Charles Hoskinson, the originator of Cardano, has highlighted the weak points affecting the Ethereum Protocol after the historical Ethereum Merge.
According to Charles, the primary issue faced by Ethereum is the locking mechanism that stops investors from taking out their staked Ether from the Beacon chain until the next upgrade is completed.
In an interview with a crypto news outlet, Hoskinson underlined that “Ethereum is the Hotel California of cryptocurrencies. You can check in, but you can’t check out.”
As per Charles believes the upgraded mechanism greatly affected the liquidity of ETH and could ultimately lead to a liquidity crisis.
Charles noted, “You’ll have less and less Ether trading in the marketplace.” He said, “And then what will ultimately happen is you’ll have a liquidity crisis where a lot of volatility comes in.”
Hoskinson also criticised the proof-of-work mining mechanism that powers Bitcoin, which he foresaw as useless in terms of Long term success.
Although Charles accepted that PoW(Proof-of-Work) is essential for developing new Bitcoin, he also believed that it is effective when BTC is used as a financial instrument.
Hoskinson noted that once BTC is mined, it could be moved onto a different, less energy-consuming blockchain in the form of wrapped assets.
“That other network could use it for stablecoins, it could use it for DeFi lending, it could use it for payments. Anything you want.”
While framing this article with reference data from CoinMarketCap largest digital asset, Bitcoin is trading at $19,125.73 with a 24-hour volume of $26,869,033,780.
And While framing this article, the second leader of the crypto industry, Ethereum(ETH), is trading at $1296.50 with a 24-hour volume of $8,095,871,840.
Why Massive Number of Ethereum Miners Went Offline ?
But the Ethereum upgrade did not present satisfactory results because more than 80% of Ethereum Miners went offline after the Merge. Although Ethereum Merge is among the historical moments of the Crypto market and before the Merge, there were many assumptions that the upgrade may reduce gas fees and increase the transaction processing speed because of the shifting mechanism from PoW to PoS(Proof-of-Stake).
An Ethereum Classic miner, TheCrowbill, stated, “I’m mining at a loss, Probably will remain that way for some time.” The transition on the Ethereum network on September 15, 2022, dropped proof-of-work (PoW) miners from the network in favour of proof-of-stake (PoS) validators.
Additionally, this move cut down the energy consumption of Ethereum by 99.8% and prompted miners to unplug an estimated $5 Billion worth of mining hardware.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Latest posts by Nancy J. Allen (see all)
NotifyLog - One stop tool for events tracking and analytics
NotifyLog is a powerful tool for events tracking and analytics. It helps you to track events from your website, mobile app, and server.CREATE YOUR FREE ACCOUNT