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Cardano’s Hoskinson: Prospect of Bitcoin Having Successful Layer 2s is “Impossible”

Last Updated February 5, 2024 9:40 AM
Teuta Franjkovic
Last Updated February 5, 2024 9:40 AM

Key Takeaways

  • Charles Hoskinson criticized Bitcoin’s L2 solutions, citing limited adaptability compared to Ethereum and Cardano.
  • Hoskinson highlights Bitcoin’s lack of BLS support and stalled projects, contrasting them with ADA’s active progress.
  • His critique sparks online discussions between BTC loyalists and Cardano flexibility advocates.

During a recent digital discussion, Cardano’s founder, Charles Hoskinson, voiced doubts  about the effectiveness of Bitcoin’s Layer 2 (L2) solutions, especially in contrast to the capabilities of Ethereum and Cardano’s own ecosystems.

His remarks were in response to an update by Muneeb Ali, the co-founder of Stacks Protocol, pertaining to deliberations at the Satoshi Round Table in Dubai.

Stagnation in BTC’s Network as a Contrast to ETH and ADA Evolution

Charles Hoskinson articulated concerns  about Bitcoin’s network, suggesting it lacks the necessary adaptability for fostering a robust L2 ecosystem.

He pointed out  the stark contrast with the ongoing advancements within Ethereum and Cardano networks, which are continuously evolving to enhance the capabilities for developers to implement effective and secure L2 solutions. Specifically, he referenced  the integration of BLS support in Cardano’s Plutus V3 and the progress in Cardano’s Mithril and Hydra projects as prime examples of the technological evolution absent in Bitcoin’s framework.

Hoskinson’s critique doesn’t stop at technical specifics but extends to the overall approach to network improvements and functionality enhancements. He observed  that the commitment of Ethereum and Cardano to regular updates has nurtured a thriving community of L2 developers, a dynamic he deems unlikely within the Bitcoin ecosystem.

He argues  that the Bitcoin network’s rigidity in embracing similar advancements might not only hinder L2 innovation but could also render its ecosystem stagnant over time.

Community Clashes Over Bitcoin’s Path

Charles Hoskinson’s recent critical comments  on Bitcoin’s infrastructure have set off a wave of discussions within the cryptocurrency community, particularly on social platforms like X.

A significant number of users are defending Bitcoin , asserting that its core strengths make additional features or functionalities for supporting L2 solutions unnecessary. This conversation underscores the varied viewpoints in the crypto realm regarding the strategic direction and developmental priorities of leading blockchain networks.

Moreover, Hoskinson connected the discourse on Bitcoin L2 solutions with the much-anticipated Bitcoin halving event set for April.

He posited that the buzz around such halving events tends to reignite interest and spur speculative ventures in the Bitcoin ecosystem, including those concerning L2 solutions.

Questions BTC’s Standalone Viability in the Crypto Ecosystem

Last month, the co-founder of Ethereum, Charles Hoskinson, expressed a critical view of Bitcoin’s dependency on the broader cryptocurrency industry.

He said:

“Bitcoin needs the industry to survive, and sure as hell needs the exchanges and all the other infrastructure because it’s not self sufficient in that dimension.”

Despite being the pioneer that set the crypto industry in motion over a decade ago, Hoskinson argued that Bitcoin’s relevance now hinges on the very industry it helped create. This assertion comes amid his recent remarks regarding Bitcoin maximalists and the regulatory stance of the SEC towards the trailblazing cryptocurrency.

Hoskinson contended that Bitcoin’s once-unchallenged dominance in the crypto space is diminishing. He pointed out that other networks, particularly Ethereum (ETH), have established significant roles, asserting their presence in the ecosystem. Furthermore, he noted that groundbreaking developments, especially in decentralized finance and non-fungible tokens, are predominantly occurring outside the realm of Bitcoin, indicating a shift in the crypto industry’s innovation epicenter.

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