In the wake of a significant update in the Ethereum network leading to the launch of Ethereum 2.0 and blockchain scaling, Charles Hoskinson, the founder of Cardano, presents a divergent viewpoint. He contends that Ethereum's shift to a Proof-of-Stake (PoS) algorithm is a self-destructive move. According to him, Cardano outshines Ethereum, with key distinctions in development strategy, technological approach, and a fundamental difference in target audience.
Governance: A Vital Ecosystem Tool
The introduction of Ethereum 2.0 involves substantial changes, particularly the transition from Proof-of-Work (PoW) to PoS. This means miners are no longer necessary to maintain the network; instead, the blockchain relies on cryptocurrency holders, who receive rewards for their participation.
Controversies surrounding the prospects of Ethereum 2.0 have sparked diverse opinions. Many closely monitor the Fly Pay exchange to stay abreast of cryptocurrency market changes and execute transactions advantageously.
Hoskinson believes that Ethereum's shift from PoW to PoS will be detrimental to its survival. He asserts the superiority of his own project, stating that Cardano holds a leading position among blockchains. Additionally, Hoskinson highlights concerns about the management policy of Ethereum 2.0, suggesting that it could impede ecosystem development when the founding team loses influence or steps back.
His perspective on this matter is clear: «We have always been leaders in this race and dominate the market. An engine is important for BMW, but it's only a part of the system, not the entire car. What we need is a comprehensive ecosystem, not just a part of it».
Hoskinson also expressed unfavorable opinions about Bitcoin, using it as an example of a slowly evolving ecosystem. He likens Bitcoin to a steam engine running on firewood, acknowledging that developers initiate improvements and introduce new features like smart contracts, but implementation in real life is limited.
Development: Long-Term Strategies
Regarding development prospects, the expert notes that Ethereum is less compatible with protocols like Cardano, Polkadot, and Cosmos, which have specific proposals for sidechain development. In this regard, Cardano implements a more comprehensive strategy.
The company doesn't solely focus on smart contract execution. It also emphasizes compliance with norms, process automation, and on-chain governance. Inclusion in governance, according to the expert, is a crucial part of the roadmap for their project.
Target Audience and Other Company Differences
Hoskinson suggests that Ethereum and Cardano differ not only in their target audience but also in technology and philosophy. According to the expert's forecast, there is significant potential in developing countries. Consequently, his company emphasizes this segment, offering straightforward and economical solutions for the financial industry. Ethereum, he claims, pays little attention to people in Africa, who are the focus of Cardano.
According to cryptocurrency exchanges, ADA ranks among the top ten cryptocurrencies but currently holds the fifth position. Cardano's market capitalization exceeds 54 billion, with cryptocurrency trading at around $1.7. A recent 2.6% depreciation has been observed. The company recently conducted the Mary update, allowing ADA not only to be stored in the blockchain but also to create and exchange tokens.
Ethereum was created not only as a payment system but also for blockchain adoption. The ETH currency can be used not only for payments but also for exchanging other resources. It actively trades on cryptocurrency exchange services like Fly Pay, experiencing an 18% increase in altcoin value in April. Currently, the capitalization is $255 billion, securing the second position after Bitcoin.
Ethereum's Prospects
In December of last year, the update entered the testing phase. In April, the first hard fork was released, introducing adjustments aimed at enhancing the network. The next stage of Ethereum 2.0 is scheduled for July, planning to implement the burning of transaction fee portions, which sparked dissatisfaction and protests from miners. The timeline for a full transition to the new version has not been announced yet, but an increase in Ethereum's value is already observed.
Blockchain improvements may lead to a currency price increase due to enhanced network performance. Therefore, many monitor cryptocurrency value changes. Observing the process is possible on the Fly Pay platform. It's essential for coin holders not to overlook this, as hype may lead to supply restrictions and push the price upward.
