Charles Hoskinson criticized the current state of the DeFi industry – Bits Media

Cardano founder Charles Hoskinson shared his opinion on the current development of the cryptocurrency industry, including the DeFi industry, and spoke about the project’s plans for the coming year.

During a video conference on YouTube, Charles Hoskinson (Charles Hoskinson) I remembered my tweet from last year, in which he suggested, that thousands of decentralized applications and hundreds of assets will switch to Cardano this year. He admitted, that I was wrong in my predictions, explained, that there are now more than two million assets running on the Cardano blockchain, most of which are non-fungible tokens (NFT). Regarding decentralized applications based on Cardano, Hoskinson hasn't seen significant growth in this area. He considers, that this was partly due to the delayed launch of the Goguen update, providing for the implementation of smart contracts.

In September, the Alonzo hard fork was activated on the Cardano network.. However, Minswap, The first decentralized application based on Cardano, encountered scaling problems due to the simultaneous use of a smart contract by several users. Despite Hoskinson’s statements about the “fabricated problem”, There is no significant activity of DeFi projects on the network. Nonetheless, Hoskinson said, that the past year has been excellent for the development of the Cardano network, since it is used by two million users and thousands of developers.

Hoskinson said, that Cardano's immediate plans include the formation of an open source structure, which will be used by various institutions, as well as expanding activities in Africa. One of the goals of Cardano is, to create all the necessary tools for peer-to-peer lending. This will bypass the African banking system, which Hoskinson called "extremely predatory and allows a lot of bad people to stay in power". He also made several negative comments about the current state of the cryptocurrency industry.:

“We were promised decentralization, and what did we get? Photos, that sell for millions of dollars, buzzwords, networks, which are supposedly decentralized, but, when they stop working, someone forced them “kick”, to restart".

Hoskinson also mentioned numerous hacks of DeFi projects, which led to huge losses of user funds. According to Elliptic, this year, tokens were stolen from DeFi platforms at $10.5 billion. According to Hoskinson, many vulnerabilities stem from the prevailing industry mentality of “better to be first.”, than the best". He considers, that it is much more advisable to conduct thorough research, however, Cardano's approach has been criticized by industry experts.

This fall Hoskinson said, that ADA and BTC do not fit the description of an international currency, since it must simultaneously be a means of exchange, payments and savings.