Bold Predictions about Ethereum’s Future
In a recent AMA (Ask Me Anything) session held on Wednesday, Charles Hoskinson, the creator of the Cardano blockchain, made bold assertions regarding the future of Ethereum. He suggested that the widely-used cryptocurrency may struggle to endure for the next decade, stating,
“I don’t think Ethereum will survive, you know, more than 10 years to 15 years.”
Comparisons to Blackberry
Predicting a shift away from Ethereum, Hoskinson drew parallels between the platform and the now-defunct Blackberry, likening Ethereum’s fate to that of the smartphone giant which faltered in the face of Apple’s iPhone success.
Criticism of Ethereum’s Foundation
According to Hoskinson, who was also a co-founder of Ethereum, the Ethereum Foundation has overlooked critical flaws in its infrastructure. He specifically criticized the platform’s choice of protocols, claiming,
“They have the wrong accounting model, they have the wrong virtual machine, and they have the wrong consensus model.”
He contended that the problems stem from the current proof-of-stake protocol, which he believes is fundamentally misguided.
Concerns about Layer-2 Solutions
Moreover, Hoskinson has expressed concern about Ethereum’s layer-2 solutions, which he characterized as “parasitic” and detrimental to the main Ethereum chain. This remark aligns with sentiments expressed by Solana’s co-founder, Anatoly Yakovenko, who has similarly criticized the impact of layer-2 solutions on blockchain performance. Hoskinson cautioned that these layer-2s may continue to
“suck all the alpha out of the main chain,”
further complicating efforts to maintain the platform’s stability as he suggested Vitalik Buterin, Ethereum’s creator, would find it increasingly difficult to manage the ecosystem.
Governance Structure Weaknesses
Additionally, Hoskinson pointed out a significant gap in Ethereum’s governance structure, asserting that an effective on-chain governance system is essential for addressing the various challenges the platform faces.
Context of Ethereum’s Performance
In the broader context of cryptocurrency, Ethereum’s recent performance is noteworthy, as it has seen a 46% decline in comparison to Bitcoin since the beginning of the year. Meanwhile, investment vehicles like ETFs designed to profit from Ethereum’s decline have emerged as top performers in the U.S. market, highlighting a growing skepticism within the trading community about Ethereum’s future viability.
