Cardano founder Charles Hoskinson has been pointing out the flaws affecting the Ethereum protocol following its latest upgrade.<\/p>\n
A major issue, according to Hoskinson, is the locking mechanism that prevents investors from withdrawing their staked Ether (ETH) from the Beacon Chain until the completion of the next upgrade.<\/p>\n
Ethereum is the Hotel California of cryptocurrencies. You can check in, but you cant check out, said Hoskinson in a recent Cointelegraph interview. <\/p>\n
According to Hoskison, this mechanism heavily impacts ETHs liquidity and could eventually spark a liquidity crisis. <\/p>\n
Youll have less and less Ether trading in the marketplace, he explained. And then what will ultimately happen is youll have a liquidity crisis where a lot of volatility comes in.<\/p>\n
Cardanos founder is also critical of the proof-of-work mining system that powers Bitcoin (BTC), which he sees as wasteful and unnecessary in the long run. <\/p>\n
While Hoskinson acknowledged the importance of proof-of-work in the process of creating new BTC, he doesnt believe its effective when BTC is used as a financial instrument.According to Hoskinson, once BTC is mined, it could be moved onto a different, less energy-consuming blockchain in the form of wrapped assets:<\/p>\n
To learnabout Hoskinsons thesis on Bitcoin and Ethereum, watchthe full interview on our YouTube channel, and dont forget to subscribe! <\/p>\n
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\nCardano founder points out flaws in Ethereum and Bitcoin - Cointelegraph<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"