Founder of Cardano Predicts Ethereum’s Decline Due to Structural Issues

Hoskinson argued that Ethereum’s current architecture, scaling difficulties, and internal inefficiencies would likely lead to a decline in its user base as alternative platforms become more appealing.

He noted that ETH‘s reliance on Layer-2 (L2) solutions to address its scaling issues could contribute to the problem. While L2 solutions help alleviate some of Ethereum’s congestion, they could eventually become parasitic, draining resources from the network without providing enough long-term value. This could ultimately lead to user frustration and migration to other blockchain ecosystems.

Ethereum’s Architectural Shortcomings

Hoskinson highlighted Ethereum’s governance model and network structure as creating long-term vulnerabilities. He pointed out that more and more users are shifting to alternative platforms, particularly those that utilize Layer-2 solutions, which are gaining dominance in the ecosystem. Ethereum’s heavy dependence on these solutions may exacerbate its scaling challenges and create tensions within the network, making it more difficult for the platform to maintain stability and user retention.

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Fundamental Flaws in Ethereum’s Design

Further, Hoskinson criticized several foundational aspects of Ethereum’s design, including its proof-of-stake (PoS) consensus mechanism, accounting model, and virtual machine. According to him, these issues were avoidable and stemmed from decisions made by the Ethereum Foundation, despite pushback from industry experts. Hoskinson emphasized that these missteps were largely self-inflicted, as the Ethereum team ignored advice against these design choices and proceeded with their implementation.

Despite Ethereum’s pioneering role in the blockchain space, Hoskinson’s comments shed light on persistent concerns about its ability to scale and maintain its position as a leader in the decentralized ecosystem. As other blockchain projects continue to innovate and address the issues Ethereum is facing, it remains uncertain how the network will adapt to the growing competition.



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