Charles Hoskinson, founder of Cardano, an open source blockchain and decentralized cryptocurrency project, said the project represents a next-generation breakthrough in technology compared to Bitcoin (BTC) and Ethereum (ETH).
In a new interview with Layah Heilpern, founder of Hong Kong Input Output, he said:
“Bitcoin was the first generation. Indeed, you had decentralized money, decentralized transfer value, decentralized ledger and, in a way, a dynamic and decentralized network concept.
This was not the case before Bitcoin. Nobody made such a thing…
The problem with Bitcoin is that it is very simple in what it can do. This is not a criticism. It was a design feature that the architects of this system tried to push. ”
“You cannot exist with Bitcoin. You cannot establish a complex contractual relationship. You cannot do things like DApps, DeFi.
So the purpose of Ethereum, the first second-generation cryptocurrency, was to try to understand what this model looks like. Thus, the distribution book from the previous generation gained dynamic and decentralized control. ”
While Ethereum’s programmability opens up many doors, Hoskinson; He says the second largest cryptocurrency is limited due to the inability to scale and share data with traditional systems.
Hoskinson says the limitations he sees in Bitcoin and Ethereum lead to the creation of Cardano.
“So when you pack these three things together – interoperability, scalability, and sustainability – the third generation cryptocurrency creates what we call functional.”
“To do this now, we had to adopt a very different way of designing something. We went back to the first principles, so we did not assume anything … Basically, slowly but surely; be it consensus abilities, general ledgers and programmability, voting systems and governance capabilities. When you put it all together, this is basically Cardano. ”