Charles Hoskinson, Co-Founder and CEO of Input Output Global (IOG), responded to growing concerns about Cardano’s network capacity. His remarks come amid discussions about the platform’s scalability, challenging past perceptions of Cardano as a ‘ghostchain.’
On December 18, 2023, Hoskinson used X (formerly Twitter) to address worries about Cardano’s blocks being too full. He recalled previous criticisms that labelled Cardano as a “ghost chain” with no utility.
In contrast to past perceptions, Hoskinson expressed satisfaction with the current high network activity. He emphasised that Cardano is designed to handle such loads.
Honskinson also mentioned the potential for further optimisation of the network and decentralised applications to enhance scalability. He provided more details in a YouTube video linked in his post.
Hoskinson Criticizes SEC on Bitcoin
Hoskinson said Cardano’s growth is thanks to the community, similar to how Bitcoin grew with little help from influencers.
In a recent online talk, Hoskinson criticised the SEC for being too easy on Bitcoin, saying it’s not as decentralised as people think. He challenged the SEC to treat Bitcoin like they do Ethereum and Cardano. He also pointed out that people who invest in Bitcoin expecting profits might see it as a kind of investment, which is a big deal for regulators.
Furthermore, Hoskinson thinks the SEC’s legal battles with the crypto industry need to be fixed. He also believes they’ll keep losing in court. He supports lawmakers who want less government involvement, thinking cryptocurrencies can fix what he sees as a ‘broken’ social contract.
Read Also: Cardano Foundation Unveils Cutting-Edge W3C-Compatible Identity Wallet
Adam Back and Hoskinson’s Debate
Adam Back, CEO of Blockstream, and Hoskinson discussed the SEC’s view on Bitcoin. Back argued that Bitcoin is unique, not like Cardano or Ethereum. He pointed out Bitcoin’s lack of an ICO, starting with no value, being decentralised, having no central figure or significant foundation reserve, and not being corporate.
According to Back, these differences mean Bitcoin is more like a commodity than a security under the Howey Test.
Hoskinson countered, stating that Cardano didn’t launch through an ICO but via an airdrop, followed by ADA trading on exchanges. He highlighted a separate asset sale outside the U.S., priced in Yen, to distinguish Cardano’s launch from typical ICOs.
Back still believed some aspects of Cardano’s launch, like the airdrop and market activities, could be seen as ICO characteristics. He also noted Cardano’s reliance on a management team, aligning with the Howey Test’s security criteria, involving the expectation of profits from managerial efforts.
Expanding on the comparison, Back likened Bitcoin to natural commodities, such as gold and diamonds, not considered securities despite market influences. However, he viewed Ethereum, Cardano, and similar cryptos as securities due to being unregistered and not fit for registration under current rules.
Read Also: Cardano Ecosystem Growth As CGI Records 782% Growth
