"The Inconvenient Truth of Web3"...Cardano Founder's Shocking Remark

▲ Charles Hoskinson, Cardano/ChatGPT generated image ©

A warning has emerged that Cardano, while advocating for 'decentralization', is in fact facing a structural contradiction by relying on centralized infrastructure.

According to the cryptocurrency media outlet Bitcoinist on April 24 (local time), Charles Hoskinson, the founder of Cardano (ADA), recently stated in a live broadcast that 'off-chain centralization dependency' is a core problem of Web3, and that the network's future direction stands at a critical juncture.

Hoskinson cited a 2022 essay by Signal co-founder Moxie Marlinspike, pointing out that the current Web3 ecosystem has a structure that relies on centralized platforms for user experience. He emphasized, “If a distributed system concentrates on a specific platform for convenience, it ultimately becomes the worst structure, where centralization and inefficiency occur simultaneously.” He admitted that this problem is an 'inconvenient truth' that not only Ethereum but also Cardano equally faces.

As a solution, he suggested redesigning the infrastructure structure itself. Hoskinson stated that the 'Midnight' project, which includes technologies such as multi-party computation, zero-knowledge cryptography, and trusted execution environments, should be built first. However, he pointed out that privacy technology alone is not enough, and the problem will recur unless off-chain infrastructure is also decentralized.

He also emphasized the need to transition BlockFrost into a decentralized infrastructure network. The argument is to create a structure that replaces centralized development platforms like Alchemy. Alchemy indeed raised $200 million in an investment round in 2022, achieving a corporate valuation of $10 billion, which is interpreted as evidence that external blockchain infrastructure holds real power.

Hoskinson explained that Cardano's financial system and voting structure are also an extension of this strategy. It is not merely about funding, but a structure that simultaneously promotes application layer decentralization, scalability improvement, connection to external systems, and the construction of off-chain infrastructure. The current ADA price is trading at around $0.25.

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