Tech Giants Eye Blockchain: Hoskinson Warns of Layer-1 Threat

Cardano's founder, Charles Hoskinson, has shared his perspective on how tech giants like Meta, Google, and Apple could potentially replace layer-1 networks in the blockchain ecosystem. In a recent interview, Hoskinson discussed the implications of the stablecoin bill and how it could open doors for these companies to establish their own blockchain infrastructure.

Hoskinson believes that these tech companies, with their vast user bases and control over operating systems, are well-positioned to compete with and potentially overtake existing layer-1 projects. He suggests that these companies could issue their own stablecoins or partner with established players like Circle to gain a foothold in the crypto market. Hoskinson also points to examples like Apple Pay and Google Pay, demonstrating these companies' existing financial infrastructure and user trust.

The Cardano founder envisions a scenario where these tech companies could even create their own layer-1 networks, given the regulatory clarity that the stablecoin bill could provide. He notes that Meta has previously attempted to enter the crypto space but was hindered by unclear regulations. With the pending crypto bills in Congress, Hoskinson sees a possibility that these companies could make another move into the crypto market.

Hoskinson predicts that the US Congress could pass the stablecoin bill within the next 100 days, presenting these tech companies with an opportunity to expand their operations into the crypto market. He argues that layer-1 networks would struggle to compete with these companies due to their larger user bases and necessary licenses. Hoskinson also raises concerns about potential unfair practices, such as blocking users' access to these networks or stopping the running of nodes, which could alter the operations of layer-1 networks.

Moreover, Hoskinson highlights the advantage these tech companies have with their confidential computing capabilities, compared to the second-generation trust-execution environments used by many layer-1 blockchains. His bold statements come amidst a bullish outlook for the ADA price, with projections suggesting a potential rally to its current all-time high of $3.10.