Cardano Founder Predicts Ethereum May Not Survive Next Decade
2min read Cardano founder Charles Hoskinson has made a bold prediction that Ethereum, one of the most prominent cryptocurrencies, may not survive the next decade. Hoskinson, who is also a former co-founder of Ethereum, cited several reasons for his pessimistic outlook, including design flaws, poor governance, and increasing competition in the cryptocurrency market. He believes that these issues could lead to the downfall of Ethereum within the next 10 to 15 years.
Ask Aime: Will Ethereum crash within 10 years due to poor governance and increasing competition?
In a thought-provoking video, blockchain attorney John E. Deaton shared Hoskinson's alarming prediction. Deaton expressed that the information was surprising, especially when it came from a co-founder. He quickly pointed out that he was not smart enough to have an opinion one way or the other.
Ask Aime: Will Ethereum survive the next decade?
Hoskinson mentioned that Ethereum has three major “self-inflicted wounds” that threaten its future. These include the wrong accounting model, the wrong virtual machine, and the wrong consensus model. “All of these were self-inflicted wounds, people told them not to do it, they did it,” Hoskinson states.
Further, he stated that Ethereum’s approach to solving these inherent problems has created additional complications. Identifying the lack of effective on-chain governance as Ethereum’s third critical weakness, he suggested that it would take “five to seven years” for Ethereum to build a functional governance system, considering its scale and complexity. For comparison, he noted that Cardano already has on-chain governance that will mature significantly within three to five years.
Apart from this, Hoskinson predicted that layer-2 solutions built on top of Ethereum will increasingly drain value from the base layer. “The layer twos will continue to suckle out all of the alpha, and people will start fighting, and it’ll get harder and harder for Vitalik to be able to hold it together through sheer force of will,” he argued.
Competition from other blockchain ecosystems poses a significant threat to Ethereum’s dominance. Hoskinson compared Ethereum to MySpace and blackberry, dominant platforms that lost the race to competitors with superior technological approaches. “They’re being eaten alive by Solana and Swede and these other things,” he noted.
Hoskinson's comments have sparked controversy and debate within the cryptocurrency community. Some analysts and industry experts have criticized his predictions, arguing that Ethereum has a strong community and a proven track record of innovation. They point to Ethereum's recent upgrades, such as the transition to a proof-of-stake consensus mechanism, as evidence of its ability to adapt and evolve.
However, Hoskinson maintains that Ethereum's current structure and governance model are fundamentally flawed. He argues that the decentralized nature of Ethereum makes it difficult to implement necessary changes and improvements. Additionally, he believes that the rise of competing cryptocurrencies, such as Cardano, could further erode Ethereum's market share and relevance.
Hoskinson's prediction serves as a reminder that even established giants in the cryptocurrency market are not immune to disruption. As the industry continues to evolve, cryptocurrencies that fail to adapt and innovate may struggle to maintain their position. Hoskinson's comments highlight the importance of strong governance, adaptability, and continuous improvement in the cryptocurrency market.
