Charles Hoskinson, founder of Cardano, reveals his bold plan to surpass Ethereum. It is banking on the strategic integration of Bitcoin and other innovative solutions to improve the scalability of its blockchain. But this interoperability, as promising as it is, raises a crucial question: can it really preserve the decentralized essence of Bitcoin?
Defeating Ethereum: Charles Hoskinson’s ambitious plan
In a series of statements on X, Charles Hoskinson, the founder of the Cardano blockchain, outlined his strategy to bring Ethereum to its knees in 2025. Its strategy is based on 3 major challenges: building decentralized finance (DeFi) focused around Bitcoin on Cardano, improving the scalability of the blockchain and advancing strategic partnerships.
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We saw it with the recent launch of Donald Trump's memecoin on Solana, the scalability of the blockchain infrastructure can very quickly find itself limiting. Scalability is therefore a central issue for blockchains, because it determines their ability to handle an increasing volume of transactions without sacrificing speed, security or decentralization (the so-called blockchain trilemma).
It is precisely to manage such peaks in demand that Leios and Hydra were developed. These tools ensure fluidity without disruption or additional costs.
While the Solana blockchain must face these scalability problems, Cardano wishes to position itself as a stable and scalable alternative. By meeting current challenges with innovative solutions, Charles Hoskinson intends to attract the confidence of developers and investors.
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Bitcoin and Cardano: can interoperability preserve the essence of Bitcoin?
Ethereum, with a total value locked (TVL) of approximately $98.7 billion, is 10 times larger than Cardano and largely dominates the DeFi sector. Faced with this domination, Charles Hoskinson identifies a still unexploited strategic opportunity: Bitcoin.
Representing a market 4 times larger than Ethereum and Solana combined, Bitcoin offers Cardano a unique chance to stand out and channel a massive flow of value to its platform.
DeFi Bitcoin is a critical part of the roadmap that IOG will pursue in 2025 with partners like Fair Gate Labs and community projects and wallets.
On October 24, EMURGO, the official trading branch of the Cardano projectannounced the launch of a Bitcoin bridge called Grail, for the Cardano network. This bridge allows BTC and ADA (Cardano's currency) to be moved between ecosystems in a decentralized and secure manner.
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The Grail Bridge uses zero-knowledge (ZK) cryptography to verify and facilitate BTC transactions directly on the blockchain, eliminating the need for centralized intermediaries.
The announcement attracted attention and questions when it was revealed that Fairgate would be a key partner in the project. Some observers have expressed confusion, fearing that Fairgate will replace BitcoinOS, a system previously announced by Cardano partner Emurgo.
In the face of these criticisms, Charles Hoskinson explained that Fairgate does not replace BitcoinOS but serves as an engine for BitcoinOS by facilitating smooth cross-chain transactions. The goal is to allow Cardano to communicate directly with Bitcoin without requiring new tokens or complex mechanisms.
This integration relies on the use of interoperable technologies that facilitate transactions between different blockchains. By leveraging Bitcoin for seamless cross-chain transactions, Cardano could allow its users to transact in Bitcoin while remaining within the Cardano ecosystem, which would enhance the fluidity and adoption of both networks.
The question now is: is this interoperability actually beneficial for Bitcoin, or could it alter the fundamentals of its decentralized and secure network?
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Source: @IOHK_Charles
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