"The Inconvenient Truth of Web3"...Cardano Founder's Shocking Statement

▲ Charles Hoskinson, Cardano/ChatGPT generated image ©

A warning has been issued that Cardano, while advocating for 'decentralization', is in fact facing a structural contradiction by relying on centralized infrastructure.

According to cryptocurrency media outlet Bitcoinist on April 24 (local time), Charles Hoskinson, founder of Cardano (ADA), recently stated in a live broadcast that the core problem of Web3 is 'reliance on off-chain centralization', and that the network's future direction stands at a critical juncture.

Hoskinson cited a 2022 essay by Signal co-founder Moxie Marlinspike, pointing out that the current Web3 ecosystem relies on centralized platforms for user experience. He emphasized, "If a decentralized system concentrates on a specific platform for convenience, it ultimately becomes the worst structure, leading to both centralization and inefficiency simultaneously." He admitted that this problem is an 'inconvenient truth' that not only Ethereum but also Cardano shares.

As a solution, he proposed a redesign of the infrastructure itself. Hoskinson stated that the 'Midnight' project, which includes technologies such as multi-party computation, zero-knowledge cryptography, and trusted execution environments, should be built first. However, he pointed out that privacy technology alone is insufficient, and the problem will recur unless off-chain infrastructure is also decentralized.

He also emphasized that BlockFrost should be transformed into a decentralized infrastructure network. He argued that a structure to replace centralized development platforms like Alchemy must be created. Indeed, Alchemy raised $200 million in a 2022 investment round, reaching a valuation of $10 billion, which is interpreted as evidence that external blockchain infrastructure holds substantial power.

Hoskinson explained that Cardano's financial system and voting structure are also an extension of this strategy. It is a structure that simultaneously promotes application layer decentralization, scalability improvement, external system connectivity, and off-chain infrastructure development, rather than just simple funding. Currently, the price of ADA is trading at around $0.25.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*