The creator of Cardano, Charles Hoskinson, recently gave his opinion regarding Ethereum dApps. Cardano itself is an open-source project as well as a cryptocurrency network that specializes in operating a public blockchain platform specifically for smart contracts. ADA is their native cryptocurrency, and the project is overseen by Switzerland based Cardano Foundation.
Cardano has made headlines quite often recently as they have been experiencing much success. In fact, there are some investors who are starting to prefer Cardano over Bitcoin itself. To this end, Hoskinson wanted to offer his view on other cryptocurrencies, namely Ethereum and their dApps, in the hopes of shedding some light on the current crypto landscape.
Decentralized application ecosystem unhealthy, according to Hoskinson
During a live-stream hosted by Hoskinson on YouTube, he made it known that he believes that the decentralized application ecosystem is more harmful than beneficial, even going as far as calling it ‘unhealthy.’ He says that dApps have a long way to go still before any true potential can be realized, and this is due largely to the fact that dApps tend to operate off-chain.
Furthermore, although there are nearly 4,000 dApps currently available on Ethereum’s network, only a couple have managed to handle financial transactions up to this point. Hoskinson says that this is hardly ideal, and the rest of the dApps not being utilized are essentially ghost chains. Also, when asked about why dApps are still around, he claimed that the increase in ETH transactional gas fees could be the reason for the trend continuing. Simply put, Hoskinson does not believe that dApps are self-sustaining as of yet.
dApps unlikely to generate profits as Hoskinson believes Cardano to be the future
As of the time of this writing, Hoskinson remains adamant that dApps are a long way away from being able to make a tangible difference in the world of cryptocurrency and that they are unlikely to generate substantial profits any time soon. In addition to highlighting the issue of gas fees, he also cited Bitcoin as a prime example of how a large crypto asset can function without the use of dApps.
Nevertheless, he concluded by saying that neither Ethereum nor Bitcoin are completely sustainable, nor are they scalable or interconnected enough for members of the cryptocurrency community. Lastly, although he did admit that Cardano is still relatively under development, it may be likely that both Bitcoin and Ethereum may be replaced by Cardano in the future.