The CEO of IOG, Charles Hoskinson, who created Cardano (ADA), the largest proof of stake (PoS) blockchain, recently spoke expressly about the shortcomings of the current decentralized finance (DeFi) sector, stating that many users are beginning to be wearied of the low production quality of apps within the fast-growing ecosystem.
During a YouTube Livestream from his home in the state of Colorado titled, “Dapp and Cardano DeFi Alliance”, Hoskinson stated that losses from scams and hacks, which took place mostly in the Ethereum ecosystem, surpassed $10.5 billion in 2021.
The mathematician also pointed out that lots of projects in the cryptocurrency space rely on “a hope and a prayer” instead of inputting rigorous engineering for a better outcome. For this reason, Hoskinson is certain that many of the projects will fail to stand the test of time.
Charles Hoskinson noted:
“It’s very hard to do this kind of engineering, and it’s very hard to do this kind of engineering right and with an eye in foresight for the future.”
Cardano Ready for the Fix
In the course of the Livestream, the IOG boss stated that Cardano will be able to fix the issues by creating a specific set of standards for decentralized finance (DeFi) so as to eject apps with poor quality.
According to the crypto billionaire, the Ouroboros family of consensus protocols will make Cardano remain relevant in the industry for decades.
Hydra, a scaling solution named after a mythological monster, and sidechains are coming to make Cardano transactions faster. So, Hoskinson expects billions of users to become part of the ecosystem within the next decades.
Cardano creator also said a lot of developers are currently working on Cardano’s core infrastructure and its DeFi ecosystem.