Cardano’s creator, Charles Hoskinson, believes that the fifth-largest cryptocurrency could facilitate the “greatest wealth transfers in history” by creating a whole new lending and borrowing ecosystem that will boost growing economies around the world.
Hoskinson shared his thoughts on what would constitute his vision of success for the platform via a live stream on March 19th from his home in Colorado.
These live streams have become a regular way for Cardano’s creator to share his thoughts on technology, cryptocurrency, and the network’s development with thousands of crypto enthusiasts.
In the latest stream, Hoskinson expressed that in his eyes, “success for Cardano“ would mean the creation of a global ecosystem in which investors like him could loan money to any person around the globe and being paid back, generating gains over and over.
Creating such an ecosystem would require the development of multiple solutions powered by blockchain technology before being possible on the global scale envisioned by Hoskinson.
These factors include identity, metadata, and payments systems that are supported by a social framework that ensures global accessibility.
This ecosystem would allow corporations to use Cardano as a treasury management function due to the higher interests developing countries could offer.
This would be, “the greatest wealth transfers in human history, from the developed rich world to the developing not-so-rich world. Not because of charity but because it makes business common sense,” according to Hoskinson.
Hoskison also highlighted the importance of such an ecosystem facilitating the exchange of cryptocurrencies to fiat currencies in international jurisdictions as a means to facilitate investment in developing countries.
Can ADA Break its Resistance Point?
Cardano’s cryptocurrency, ADA, has been one of the biggest winners of 2021 after experiencing a prolonged period of value gains since late December of 2020 which resulted in the coin’s all-time high of $1.45 on February 27th up till that date.
After a correction, the cryptocurrency experienced volatility that prevented it from reaching this value again until March 18th, when it briefly reached a new all-time high of $1.48 which once again corrected and saw its value return to $1.18 at the time of writing.
This recent rally was likely the result of the addition of ADA to Bloomberg’s terminal, one of the informational roasts of the highest reputation in the finance industry, and its listing in Coinbase Pro, an exchange that has become a favorite among institutional investors.
While ADA’s price dropped again after reaching the previous point of resistance, there are major events in the development of the platform that will likely help it break this new point of resistance in the near future.
These events include the full decentralization of the network in what is known as ‘d’ (=0) day and the launch of smart contracts which will allow the network completely functional.
Ethereum’s Status as King of Blockchains Could be at Jeopardy
Charles Hoskinson and Gavin Wood were co-founders of the Ethereum network, a project in which both participated before parting ways with the development team to start their blockchain networks: Cardano and Polkadot.
These two networks have been consistently been called “Ethereum killer” due to their innovative approach aimed to improve on the deficiencies of Ethereum, especially scalability and interoperability.
Ever since mid-2020, Ethereum has consistently experienced increase congestion that no only resulted in high gas prices that affected developers and users.
These unfortunate network issues are a result of high volumes of low-value transactions and have impacted anyone who wants efficiency and fast settlement of transactions.
No Solutions Coming Tomorrow
Vitalik Buterin has expressed its belief that Layer-2 solutions can support the scaling of the network when Etheruem 2.0 is deployed.
Alternatives like Polkadot and Cardano have become increasingly attractive due to their native focus on providing a scalable ecosystem that does not rely on third-party software, reducing development efforts.
In a recent interview with Bloomberg, Hoskinson said that he was aware of more than 100 companies currently being “in the pipeline” when it comes to considering a transition from Ethereum to Cardano.
The latter continues to develop, as, “You can take your DeFi and you can run it on my system for 1/100 to 1/1000 of the cost”.
With Poladot’s Parachain Rollout, Cardano’s Goguen Era, and Ethereum’s 2.0 all coming in the next months, the future of the blockchain ecosystem is all but certain for Ethereum.
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Author: Nicholas Say