«Ethereum will not survive more than 10 years»: CEO of Cardano

The Ethereum Network (ETH) does not cross its most famous hours. While their technological advances and their developments are not accompanied by a bull market of their native token, Ether, new questions arose in the last hours.

And, added to that first problem, Charles Hoskinson, founder of Cardano (ADA) and who also participated in the creation of Ethereum, expressed on April 23, during a transmission, a series of criticism towards this last ecosystem. Your comments, which include the statement that «Ethereum will not survive more than 10 or 15 years»they cover multiple technical, economic and governance aspects of the network.

Criticisms of the Ethereum participation test model

HOSKINSON identifies Ethereum’s consensus test mechanism (POS) as One of its main structural defects.

According to him, the post design of that chain, implemented after the transition of work test (POW) in 2022 with The Merge, depends excessively on a penalty system known as’slashing’. This mechanism punishes the validators that act in a malicious way or that do not comply with the rules of the protocol, reducing their staking funds.

HOSKINSON argues that this approach creates an economy that Enter unnecessary frictions and harms ecosystem participants. In his opinion, Ethereum’s POS fails to balance incentives and punishments effectively, which could discourage participation and weaken the long -term network.

As an alternative, the CEO of Cardano proposes to adopt a delegated participation test model (DPOS), used for example in the Sui Network (SUI), which according to him is more efficient and resilient. DPOS delegates validation to a small group of nodes chosen by the community, which could reduce the complexity and risks associated with the slashing.

On the other hand, that small group of nodes selected by the community of a network could put at risk the centralization of consensus power, if those nodes act maliciously.

Ethereum virtual machine questioning (EVM)

Another critical point of Hoskinson is the Virtual Machine of Ethereum (EVM), the environment that executes smart contracts on the network. The EVM is the spine for the development of decentralized applications (DAPPS) and decentralized finances (defi) of Ethereum. However, Hoskinson considers her obsolete due to its design and growing complexity.

HOSKINSON suggests that EVM would introduce inefficiencies or vulnerabilities that could be exploited as the network grows, and that its lack of flexibility limits Ethereum’s ability to adapt to new technologies and market needs. Although it does not detail a specific alternative for EVM, your comment adds that Ethereum should consider a deep restructuring of its technical infrastructure to stay competitive.

In this sense, Vitalik Buterin himself, co -founder of Ethereum, recently proposed to replace the EVM with another virtual machine environment, than would reduce transactions processing times and costs for usersas cryptootics notified. For his part, Hoskinson cataloged that possible implementation as «a very good decision.»

Layer 2 solutions as «parasitic»

The Cardano co -founder dedicates a significant part of his criticism to the second -layer networks (L2) of Ethereum, as arbitrum and base, designed to improve scalability by processing transactions outside the main chain while benefiting from their safety.

For Hushinson, these solutions do not solve Ethereum’s fundamental problems, but They act «parasitic». Argues that L2 extract value from the main network (Mainnet) without contributing to a symbiotic relationship that benefits the ecosystem as a whole.

Instead of solving the limitations of Ethereum, the L2 «continue to suck the entire alpha (value),» diverting economic activity and users to these secondary layers. This, according to Hoskinson’s sayings, weakens Ethereum’s economy and could accelerate his decline.

At this point, the CEO of Cardano uses an analogy with technology companies that have disappeared, such as MySpace and Blackberry, to reinforce their idea. Like these companies collapsed for not adapting to competition And due to structural problems, Ethereum could face a similar destination if L2 continue to «bleed» their main network. However, Hoskinson himself claimed not to know if this problem could be solved «easily.»

Ultimately, Hoskinson, although without deepening or arguing, said that Ethereum’s economic decisions were wrong, indicating a «wrong accounting model», as well as stated that Ethereum «really does not have a good chain governance system.»