Cardano creator Charles Hoskinson says the smart contract platform will host billions of dollars worth of products and inspire many blockchain developers to migrate away from Ethereum at the base layer.
In a new interview on Cardano Chats, Hoskinson, who is busy at working building a competitor to the Ethereum platform, which he himself co-founded roughly six years ago, says that Cardano is set to capture billions of dollars of value in the financial sector.
Ethereum has a years-long lead in the smart contract space. Once Cardano launches smart contracts, which is expected to happen in August, Hoskinson says he envisions the platform powering a global infrastructure for peer-to-peer lending that could help millions of unbanked individuals access the financial market.
“That one thing alone, if we can solve it, will result in tens of billions, if not hundreds of billions of dollars leaving the developing world and enriching the lives of millions, if not tens of millions of people…
What I’m going to start doing, above and beyond making Cardano more competitive… is really start getting serious about things like peer-to-peer lending, and reputation and identity and insurance and payments and so forth, because if I do that I’m going to change the lives of a billion people.”
The Cardano creator and founder of the IOHK (Input Output Hong Kong) development and research team, adds that his firm is working to build out the Cardano ecosystem and expand the use-cases of blockchain technology.
“I think there’s like six different non-fungible token (NFT) marketplaces that are pitching for catalyst funds, great. And every six to eight weeks that’s going to get more and more aggressive…
We’re putting cattle on the blockchain, and that seems like a simple thing, but how do you know the steak on your plate is safe? You trust the Food and Drug Administration (FDA), but what if the beef is imported… the USDA (U.S. Department of Agriculture) didn’t exactly monitor that during its life cycle so that’s another example of a multi-billion dollar product line and a little thing that Cardano can enable and do… You know, it’s going to be a crazy ecosystem by the end of the year and it’s going to be even crazier by 2022.”
Hoskinson believes that as those building and transacting on the Ethereum blockchain realize that they can find much lower fees on Cardano, developers and users will flock to the novel ecosystem.
“And also, these [developers and users] who aren’t loyal to the Ethereum infrastructure will say, ‘Why am I running my base infrastructure on Ethereum? I should just build a bridge [to Cardano] and run my bridge layer 2.’ All these optimistic roll ups that Vitalik [Buterin] (Ethereum co-founder) is bragging about – that’s an interoperability layer for me. So it’s going to make it a lot easier for the stuff running on Ethereum to just access Ethereum markets and Ethereum people and infrastructure, but the actual transaction settlements these things will be running on Cardano.
So that’s the thing that a lot of these people don’t get about this. None of these protocols are loyal to Ethereum, they’re just there because they have first mover advantage, but the minute that the infrastructure wakes up a little bit it’s going to be a lot easier to have a mass exodus. And that’s probably what’s going to occur because why else would they want to stay if they have to pay $50 fees or $70 fees?”