Charles Hoskinson, founder of IOHK and Cardano, highlighted the recent bridge attacks and security vulnerabilities, stating that the cryptocurrency industry needs to mature. Arguing that focusing solely on speed is the wrong approach to addressing security issues, Hoskinson emphasized the necessity of zero-knowledge (ZK) technologies and decentralized insurance systems.
Referring to the recent hack on a third-party bridge used on the Binance-Cardano line, Hoskinson stated that traditional software security models are insufficient against AI-powered cyberattacks.
He stated that instead of relying on people or multi-signature (multisig) structures, there should be a shift to ZK systems (e.g., the Midnight project) that rely on mathematics. He argued that for the sector to reach traditional financial levels, optional insurance pools (RWA-based) that can compensate users for their losses should be established.
Hoskinson announced that the Cardano ecosystem has successfully completed its v11 upgrade, stating that this update is the first major hard fork to be implemented entirely through on-chain community voting. The new update adds the Groth16 ZK proof-of-service verification infrastructure to the system. The next major update, Leios, aims to increase Cardano’s transaction speed by approximately 60 times. Hoskinson also stated that Cardano has completed its legislative and judicial-like governance mechanisms, and that a decentralized “executive authority” will be created to manage marketing, commercial adoption, and growth strategies.
Hoskinson harshly criticized Ethereum’s governance and financing model, drawing attention to Cardano’s treasury system. He stated that Cardano’s development is sustained thanks to its on-chain treasury, arguing that Ethereum’s lack of decentralized governance has led to it falling under the control of large corporations and oligarchic structures.
Hoskinson stated that Layer-2 (L2) solutions in the Ethereum ecosystem are “parasitic” and harm the main chain, adding that Cardano, on the other hand, provides ADA holders with multiple token returns through a “partnered” L2 model.
*This is not investment advice.
