Charles Hoskinson, founder of Cardano, an open source blockchain and decentralized cryptocurrency project, says the project represents a huge technological leap over Bitcoin (BTC) and Ethereum (ETH).
In a new interview with Altcoin Buzz with Laya Heilpern, the founder of Input Output Hong Kong (IOHK) described the main offer of Bitcoin as a value when it was first invented.
“Bitcoin was the first engine. This was the first generation. Indeed, it was the concept of having decentralized money, decentralized transfer value, a decentralized ledger, and somehow a dynamic and decentralized network to support everything.
This was not the case before Bitcoin. No one has ever done something like this …
The problem with Bitcoin is that it is very simple in what it can do. This is not a criticism. This was a design feature that the architects of this system tried to push through. “
Hoskinson claims that the limited supply of Bitcoin, which applied value to pressure, gave rise to Ethereum.
“[With Bitcoin] you can’t issue assets. You cannot make a complex contractual relationship. You can’t do dApps and DeFi, and all that stuff.
Therefore, the purpose of Ethereum , which was the first second generation of cryptocurrency, was to try to understand what this model looks like. So it took away everything from the previous generation – decentralized ledger, dynamic and decentralized management. But then she said, “Now all of a sudden, your transactions are programmable.”
While Ethereum’s programmability opens many doors, Hoskinson believes that the second largest cryptocurrency is limited by its inability to scale and share data with traditional systems.
“It’s not enough to just say, ‘Hey, we’re going to build a system that’s blind and deaf, and it doesn’t really understand or see the world around it.’ We need to build a system that is aware that there are other systems and can communicate with them and move value and information. “
Hoskinson says the constraints he sees in both Bitcoin and Ethereum have led to the creation of Cardano .
“So when you put these three things together – interoperability, scalability and resilience – it functionally creates what we call third-generation cryptocurrency.
Now, to do that, we had to take a very different way of designing things. We went back to the first principles, so we didn’t assume anything … Basically, slowly but surely, we built a body of capabilities, whether it’s consensus capabilities or leadership and programmability capabilities, or voting systems and management capabilities. When you string them all together, it’s Cardano. “
You can see the full interview below.