Cardano founder Charles Hoskinson pointed out the bugs affecting the Ethereum protocol after the latest update.
The main problem, according to Hoskinson, is the lockout mechanism, which prevents investors from withdrawing their stake in Ether from the Bacon chain until the next upgrade is completed.
“Ethereum is the California hotel among cryptocurrencies. 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 lead to a liquidity crunch.
“You will have less and less ether trading in the market,” he explained. “And what will eventually happen is you will have a liquidity crunch when there is a lot of volatility.”
The Cardano founder also criticizes the Proof of Work mining system that powers Bitcoin (
BTC
knock
$19,289
), 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. According to Hoskinson, once BTC is mined, it can be transferred to another, less energy-intensive blockchain in the form of encapsulated assets:
“Another network can use it for stablecoins, you can use it for DeFi lending, you can use it for payments. Anything you want.”
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