Charles Hoskinson’s Critique of Ethereum
Charles Hoskinson, who was involved in the founding of Ethereum, pointed out three significant structural flaws in Ethereum, namely the incorrect ledger model, the erroneous virtual machine, and the flawed consensus mechanism. He criticized the failure of Ethereum’s economic model and its reliance on Layer 2 solutions (L2). He believes that these L2 networks have become “parasitic” and have not resolved the core scalability issues of Ethereum; rather, they are extracting value from the main chain.
Hoskinson asserts that to get Ethereum back on track, the aforementioned three problems must be addressed. However, he also notes that considering Ethereum’s governance and tokenomics, this process may culminate in a “very hostile split.” He draws an analogy between Ethereum’s situation and that of former tech giants Myspace and BlackBerry, which ultimately declined due to competition and mismanagement.
“I don’t believe Ethereum can last more than 10 to 15 years. L2 will continue to siphon off all the alpha. People will start infighting, and Vitalik will find it increasingly difficult to sustain the entire ecosystem solely through personal willpower,” he stated.
He further indicated that users will gradually shift to other platforms, and Ethereum will be “overshadowed.” He specifically mentioned the decentralized finance (DeFi) ecosystem of Bitcoin, predicting that its Total Value Locked (TVL) will eventually surpass that of Ethereum.
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