Skip to content

Cardano’s Hoskinson says a great DeFi extinction will occur in the next five to ten years

Cardano's Hoskinson says a great DeFi extinction will occur in the next five to ten years

Cardano founder Charles Hoskinson has projected that due to a poor level of engineering, most decentralized finance (DeFi) projects will be extinct in the next five to ten years.

Speaking during YouTube live session, Hoskinson stated that many projects in the space rely on “a hope and a prayer” mindset instead of focusing on rigorous engineering, and consequently they won’t stand the test of time.

According to the Input-Output boss, the current DeFi projects can be considered low quality, an aspect that is wearing down users. 

He noted that the low quality of the projects is evident by the total value of hacks in the sector in 2021 alone while singling out the Ethereum space for having key weak points that contributed to almost $10.5 billion in losses.

“Unfortunately, many of the projects in this space will not stand the test of time. We will see a great extinction occur in the next five to 10 years, the reason you do things right, is so that you can be around for that extinction event. Many of you are tired of the incredible cost, the lack of clarity and the low production quality of applications in the DeFi space,” said Hoskinson. 

Hoskinson added that the current DeFi ecosystem is a survival for the fittest, and Cardano is evolving to set up a system that will build on current shortcomings. To enhance longevity and security, the mathematician stated that the Cardano DeFi platform is focusing more on factors like certification standards and exploring a public-private partnership. 

The future of Cardano

Although the Cardano network has been undergoing upgrades for the better of the year, Hoskinson added that 2022 would be significant. He noted that the network would carry out several updates instead of a single one, including a light wallet and prism integration. 

Overall, the growth has resulted in the network registering a spike under various metrics. As reported by Finbold, within a year, the number of Cardano wallets has grown over 1,200% from the 2020 Christmas figure of 190,000 to 2.5 million wallets as of December 24, 2021. The wallets potentially indicate that more people are involved in the Cardano network.

During the session, Hoskinson also introduced the Cardano DeFi Alliance (CDA) that includes various players currently developing on the Cardano blockchain. The overall goal of the alliance is to create a “robust and dynamic” DeFi ecosystem that will set the standard for the entire DeFi industry to follow. 

Watch the full YouTube live session: DApps and Cardano DeFi Alliance

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.