Cardano founder Charles Hoskinson has cast significant doubts about the long-term viability of Ethereum, citing the ecosystem’s numerous mistakes.
Hoskinson dropped the bombshell in a recent Ask Me Anything (AMA) session on X (formerly Twitter) on April 23. The Ethereum co-founder asserted that his former project would not survive for more than 10 to 15 years, highlighting the three approaches that have hampered its longevity.
Ethereum’s Three Mistakes
The Ethereum ecosystem is currently the second biggest in the crypto space after Bitcoin, as evident in its network utility, institutional adoption, and developer support. However, Hoskinson has argued that the network’s long-term relevance remains in doubt.
When asked what he would do differently if he were running the Ethereum network, the Cardano founder highlighted three drawdowns impeding the smart contract network’s viability. First, he questioned Ethereum’s choice of protocol and consensus model, insisting they were not befitting.
Then, Hoskinson noted that Ethereum’s adoption of layer 2 scaling solutions and slashing economics has had negative impacts on the ecosystem. Currently running on the Proof-of-Stake (POS) mechanism, Ethereum has the largest layer 2 networks built on top of it in the crypto space, and Hoskinson finds the scalability solutions parasitic rather than symbiotic to its mainnet.
Lastly, the Cardano founder emphasized that Ethereum lacks a sound governance system. For context, the network’s governance is off-chain rather than on-chain. Proposed models are deliberated and agreed upon on social forums coordinated by the blockchain’s key participants.
Meanwhile, the Input Output Global (IOG) CEO stressed that these crucial network properties would deter Ethereum’s adoption as the crypto landscape evolves. Further, he mentioned the solutions to these setbacks.
Hoskinson’s Proposed Changes
The Cardano founder proposed a slow but intentional shift from Ethereum’s current POS protocol, suggesting the adoption of the Sui network’s Delegated Proof of Stake (DPOS). Furthermore, he proposed the migration to on-chain governance, which, according to him, would help galvanize the ecosystem’s enthusiasts in solving its many problems.
Meanwhile, Hoskinson suggested reducing the layer 2s’ dependence on the Ethereum mainnet. However, he does not see its possibility, noting it would be a “hostile divorce” for these scaling solutions.
As a result, he noted that Ethereum would not survive for another 10 to 15 years. He stated that the network was a “brilliant project” but became a victim of its success.
Other Innovations to Eclipse Ethereum’s Reign
Interestingly, Hoskinson noted that Cardano has righted every wrong the Ethereum network has made. According to him, Cardano has the right consensus model, has migrated to a decentralized governance system, and has sidechains like Midnight that improve its network rather than suckle it.
Furthermore, he noted that technological innovations from networks like Cardano, Sui, and Solana would continue to erode Ethereum’s dominance. For context, he stated that when decentralized finance (DeFi) features go live on Bitcoin, Ethereum users would migrate, further depopulating the smart contract network.
Notably, this is not the first time Hoskinson has cast doubts on Ethereum’s long-term success. Recall that he called the network a dictatorship controlled by co-founder Vitalik Buterin.
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