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October 2, 2022
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Bitcoin will die without innovation, Charles Hoskinson believes

Bitcoin skeptic and Cardano founder Charles Hoskinson recently said in interview for the Cardano subreddit that the only valuable feature of BTC and Fiats is acceptance. Therefore, when it loses its only strength – popularity, it will in effect die.

Over the past week, bitcoin has become the subject of talks and discussions around the world. The coin broke the level of $ 52,000 shortly after Tesla’s huge investment. Opinions, however, are divided. Some believe that we are flying “to the moon”, while others predict collapse.

Is Cardano better than Bitcoin?

From a simple point of view, Cardano is just another blockchain. The difference between BTC and Cardano, however, is that Cardano is a third generation blockchain. This is why Hoskinson offers potentially more value than Bitcoin. Bitcoin is a first-generation blockchain. In the BTC network, coins are transferred from one wallet to another, and that is basically all this chain can do.

Ethereum is an example of second generation blockchain. Smart contracts convey value and allow these operations to be controlled, making the blockchain more functional. This network, however, suffers from design flaws. Among other things, it has low scalability, which makes it very difficult to handle a huge number of transactions made on DeFi.

Cardano, on the other hand, as a third-generation blockchain, tries to solve the problems of earlier chains by enriching the second-generation blockchain with new technologies. Ultimately, this should make the network scalable, secure, and efficient – without losing decentralization, of course.

Bitcoin needs innovation

Hoskinson says Bitcoin needs to innovate in order to compete with its competitors. If he doesn’t, there will be no reason to breed him and he will die. Segwit, Taproot, Schnorr Signatures, and the Lightning Network are the best known enhancements to the Bitcoin network. When all of them are implemented, Bitcoin will theoretically be able to handle a much larger volume of transactions.

During an interview, Hoskinson said the disadvantages for developers were the decentralized nature of the community and the lack of focus. Hoskinson raises an issue that could be very important in the future. In his opinion, the lack of agreement among developers may lead to problems with solving future issues, such as network restructuring or blockchain management, when it becomes too large.

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