IOHK CEO Charles Hoskinson gave his perspective on why Cardano will surpass Ethereum 2.0. In an interview with Ben Armstrong, AKA Bitboy Crypto, Hoskinson talked about Cardano having a simpler and more robust design than Ethereum.
In addition, he doubts that this additional complexity will result in higher throughput, better scalability and more security for the Ethereum network.
With the deadline quickly approaching the rollout in Goguen, the coming weeks and months will prove to be crucial in determining whether Cardano can gain a foothold versus Ethereum as a platform for smart contracts.
Due to a strong performance, ADA breaks the USD 0.50 mark today, reaching a 37-month high.
Source: ADAUSD on TradingView.com
Cardano is characterized by its robust and simple design
Much has been said about “killing Ethereum” for the longest time. However, developments in Cardano will increase rapidly in the course of 2021.
The “Goguen Mary” test network was successfully deployed this week, which means that the Cardano ecosystem will soon receive support for “native tokens”. This will turn it into a multi-asset ledger and open up a world of possibilities, including DeFi.
As the term suggests, “native” means that these custom tokens, just like ADA, are processed directly on the blockchain. Most other blockchains, including Ethereum, process custom tokens through smart contracts over the base tier.
Hoskinson said that the design differences between the two Ethereum are on the back foot. This makes Ethereum brittle and fragile.
“But I think the Vitaliks are a bit more risky from a technical and scientific point of view, which is why it was so difficult for them to bring out ETH 2.0.
They have put themselves in a situation where they are relying on optimistic ZK rollups, sharding technology and those other things and that is very brittle and fragile. The science is not very good yet.
He went further into Ethereum’s complex approach and brought many tradeoffs with it, including its ability to withstand node failures and the possibility of new exploits.
“You are actually going from a half to a third Byzantine fault tolerance and there are availability issues and there will likely be all kinds of new attacks that will occur.”
Ethereum security back in the spotlight
Hoskinson’s timely comments come when Ethereum’s security is back in the spotlight.
The DeFi agricultural project Yearn Finance has been found to have suffered an attack. The details of the exploit are currently unknown. However, a tweet from Yearn Finance stated that the Dai loan pool was being targeted.
We have discovered that the v1 yDAI vault has suffered an exploit. The exploit has been mitigated. Full report follows.
– yearn.finance (@iearnfinance) February 4, 2021
Yearn Finance’s core developer @bantg later provided more information about the attack. A postmortem of the situation shows that the attacker reached the v1 Dai pool for $ 11 million.
“Sehnsucht DAI v1 safe was exploited, the attacker got away with $ 2.8 million, the safe lost $ 11 million. Deposits into strategies that are disabled for v1 DAI, TUSD, USDC, and USDT vaults while we investigate.“