Will Cardano outperform Ethereum 2.0 in DeFi?
Charles Hoskinson, founder and CEO of the IOHK company behind the Cardano project, doubts that the Ethereum 2.0 upgrade will lead to higher productivity, better scalability, and more safety for Ethereum, and he reckons that all of this will highlight Cardano's superior design in decentralized finance. DeFi.
DeFi and Dapps are the markets targeted by Ethereum and rival smart contract blockchain networks such as Cardano.
Currently, DeFi projects are intrinsically linked to Ethereum, with the vast majority of DeFi decentralized financing protocols operating on the Ethereum blockchain.
In an interview on Friday 5th February, Hoskinson explained that Cardano's slow build-up has led to a simpler and more robust design than Ethereum that will make it easier to tap into the DeFi space.
Cardano is now close to decentralized financing, DeFi, following the successful modernization and upgrade of Meri.
Hoskinson predicted that the ADA blockchain would be able to compete with Ethereum as a smart contract platform.
Ethereum 2.0 in front of strong competition from Cardano
Cardano's "Miri" update was successfully published last week with the first split, opening a world of possibilities for the ecosystem to support DeFi.
Cardano's design is superior to Ethereum because it removes a layer of complexity as cryptocurrencies will be able to directly interact with the blockchain network.
Hoskinson said in the interview that from an engineering point of view, the Ethereum design is fragile, and Ethereum's complex approach brings with it many trade-offs, including its ability to withstand knot failure and the potential for new effects.
So it is difficult to solve such matters in the Ethereum 2.0 update.
Hoskinson went on to explain:
They have put themselves in a position where they are betting on "ZK-Rollups", hash technology, and many other things, which is very fragile and fragile.
What is known is not good yet […] They are actually going from half to one third of Byzantine tolerance for error, there are problems with availability, and it is likely that there will be all kinds of new attacks that will occur.
Hopkinson added:
The design differences between the two put Ethereum in the foreground rear.
In fact, Ethereum is fragile.
Charles Hoskinson’s statements scathing about the Ethereum trend that he helped establish at some point, as he broke away from him and went to establish the Cardano project, whose ADA digital currency has become the fourth largest cryptocurrency in terms of total market value.
