Bitrabo Editorial
Charles Hoskinson, the creator of Cardano (ADA), recently opened up about a crypto project that posed a significant threat to Ethereum (ETH) in its early days. This revelation came following Hoskinson’s reflections on his tenure as the CEO of Ethereum and his concerns during that period.
Revealing the Rival to Ethereum
In a recent interview with Altcoin Daily, Hoskinson identified NXT as the crypto project that had the potential to overshadow Ethereum during its inception. He expressed that among various cryptocurrencies, NXT was the one that greatly worried him while he led Ethereum from 2013 to 2014.
He elaborated on his apprehensions, citing NXT’s sudden emergence and rapid growth within a timeframe of just three months. Notably, NXT, developed on Java, boasted a highly active community and was innovating its product offerings with user-driven assets.
Despite Ethereum’s reliance on a proof-of-work mechanism at the time, NXT was already utilizing a proof-of-stake model and had intentions to introduce smart contracts to its network. Hoskinson marveled at NXT’s pace of progress and the enthusiastic community driving its development. However, he also mentioned the factors that led to NXT’s ultimate failure.
Hoskinson criticized NXT for inadequate token distribution but emphasized that this issue could have been rectified. He noted that the absence of a robust governance system was the pivotal flaw that resulted in team fragmentation and the inception of several new projects, ultimately leading to NXT’s downfall.
Reflecting on the alternate scenario where NXT had maintained proper governance, Hoskinson suggested that Ethereum might not have attained its current status. He envisioned NXT as a dominant force absorbing other projects and praised its novelty and technological advancements.
The Impact of Governance
Building upon NXT’s governance flaws, Hoskinson underscored the crucial role of governance within the crypto landscape, asserting that it determines the success or demise of a project. He drew parallels with corporate giants like Microsoft falling behind due to ineffective governance compared to rivals like Google, Apple, and Facebook.
Hoskinson endorsed decentralized governance as a superior approach for managing crypto ecosystems, emphasizing that community participation enhances operational efficiency. He highlighted Cardano’s emphasis on achieving effective governance, positioning it uniquely within the competitive crypto sphere.
Cardano is poised for the Chang Hard Fork, heralding the “Voltaire” era focused on decentralized governance, a transition that will community-driven. Hoskinson expressed confidence that Voltaire would introduce the most advanced blockchain governance system to the Cardano ecosystem.