Cardano founder Charles Hoskinson pointed out the bugs affecting the Ethereum protocol since the last update.
The main problem, according to Hoskinson, is the locking mechanism that prevents investors from withdrawing their stake in Ether (
) from the Beacon Chain until the next update is completed.
“Ethereum is California’s cryptocurrency hotel. You can check in, but you can’t check out,” Hoskinson said in a recent interview with Cointelegraph.
According to Hoskison, this mechanism has a significant impact on ETH’s liquidity and may eventually cause a liquidity crunch.
“You will have less and less ether trading in the market,” he explained. “And then eventually there will be a liquidity crunch where there is a lot of volatility.”
The Cardano founder also criticizes the Proof of Work mining system that powers Bitcoin (
), which it considers wasted and unnecessary in the long run.
While Hoskinson has acknowledged the importance of proof-of-work in the process of creating a new bitcoin, he does not see it as effective when using bitcoin as a financial tool. Once BTC is mined, it can be transferred to another, less energy-intensive blockchain as a packaged asset, according to Hoskinson:
“This other network can be used for stablecoins, for DeFi lending, for payments. Anything you want.”
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