Hoskinson On Bitcoin Layer 2 Venture
Cardano founder Charles Hoskinson recently made a significant observation about Bitcoin and its underlying challenges. Hoskinson highlights claims that the fundamental limitations of Bitcoin impede its capacity to undergo the necessary modifications and have components vital to becoming a thriving Layer 2 (L2) environment.
He referenced the ongoing progression of platforms such as Ethereum and Cardano that undergo consistent enhancements. Thus, developers can have a growing range of choices to implement Layer 2 solutions that are secure, reliable, and effective.
He added that Bitcoin’s decades of halving have yet to produce exceptional results compared to these other networks regarding L2 functionality.
The Cardano CEO substantiated his stance by citing significant developments, including incorporating BLS support into Plutus V3. He also mentioned other projects, such as Hydra and Mithril, which significantly contribute to fulfilling the varied commercial and technical prerequisites critical for the ongoing advancement of Cardano.
Furthermore, Hoskinson cited the Ethereum network’s thriving L2 projects, which form a core part of the protocol’s roadmap.
No Breakthrough For Bitcoin L2s
Meanwhile, Hoskinson opined that the pioneer crypto network faces challenges in improving or changing its core features. Thus, achieving specific goals using Bitcoin Layer 2s would be almost impossible.
Hoskinson added that Bitcoin L2s require centralized or federated infrastructure to work properly. It is worth noting that the Cardano founder’s views were prompted by a tweet from Muneeb, co-creator of the Bitcoin Layer 2 platform Stacks.
Muneeb shared his experience during the Satoshi Round Table discussions held in Dubai. The discussions covered several Bitcoin L2 topics, including BitVM, peg security, and decentralized finance (DeFi).
Unlike Hoskinson, Muneeb was bullish about the exponential development potential of Bitcoin Layer 2s. The expert opined that Bitcoin’s full potential can be realized through programmable Layer 2 solutions, aided by the influx of new funds and skilled developers into the protocol.
Furthermore, Muneeb forecasts that three to five additional Layer 2s will be introduced over the next six months, followed by ten more within the next twelve to eighteen months.
Taking A Cue From Solana
In a related development, CyberCapital’s Justin Bon drew the ire of the Cardano community after he suggested that the network and other Layer 1 platforms adopt Solana’s strategy. Instead of criticizing Solana for its automated activity and arbitrage-friendly cheap fees, Bon contends that competitor blockchains like Cardano should consider incorporating such features.
According to him, bot activity is a positive indicator of platform adoption. He added that transaction features should balance the economic complexities of blockchain.
Arguments Against Bon’s Perspectives
To emulate Solana’s exceptional achievements, Bon stressed that competitor networks should decrease transaction fees and incorporate automated algorithms, a feature Bon considers a crucial indicator of network utility. However, critics argue that increased bot activity could lead to network congestion and security vulnerabilities; they referred to past exploits in the Solana ecosystem.
Furthermore, Bon’s viewpoint regarding Solana, which shifted from criticism to support, has generated considerable speculation from observers. Meanwhile, observers see Bon’s insights as another way to significantly contribute to the functionality of crypto networks and the broader digital asset industry.