In an interview yesterday, Cardano and Ethereum co-founder Charles Hoskinson raised concerns about Bitcoin’s governance model and its limitations in development. The discussion, hosted by Coin Bureau, gave an insight into contrasting governance models between Cardano and Bitcoin.
Hoskinson pointed out Bitcoin’s “inability to upgrade,” noting that its lack of governance has held it back in many ways. He mentioned missed developmental milestones, such as the failure to implement colored coins and sidechains. Colored coins are a concept that tags specific Bitcoin transactions to represent ownership of external assets. Sidechains are separate blockchain ledgers that run parallel to a primary blockchain, allowing for asset transfer and different rule sets without affecting the main network.
Hoskinson also addressed the cultural aspect of Bitcoin’s governance. He described Bitcoin as having a “religious monoculture” or “cult” that treats the opinions of core developers as beyond questioning. This stands in direct contrast to Cardano’s goal of being an “open-source project” that can “admit maybe somebody else had a better idea” than its founders.
He warned that Bitcoin may become irrelevant due to its inability to dynamically upgrade. While Bitcoin has carved out a “very well-defined role” as “digital gold,” it has largely abstained from participating in other emerging sectors like decentralized finance and non-currency use cases.
Hoskinson’s comments about governance and development in the Bitcoin community invite deeper contemplation of the importance of adaptability in blockchain technology. As the crypto space matures and the demand for varied functionalities increases, a governance model that allows for dynamic upgrades could become a major competitive advantage.
