Cardano founder points out flaws in Ethereum and Bitcoin – Cointelegraph

Cardano founder Charles Hoskinson has been pointing out the flaws affecting the Ethereum protocol following its latest upgrade.

A major issue, according to Hoskinson, is the locking mechanism that prevents investors from withdrawing their staked Ether (ETH) from the Beacon Chain until the completion of the next upgrade.

Ethereum is the Hotel California of cryptocurrencies. You can check in, but you cant check out, said Hoskinson in a recent Cointelegraph interview.

According to Hoskison, this mechanism heavily impacts ETHs liquidity and could eventually spark a liquidity crisis.

Youll have less and less Ether trading in the marketplace, he explained. And then what will ultimately happen is youll have a liquidity crisis where a lot of volatility comes in.

Cardanos founder is also critical of the proof-of-work mining system that powers Bitcoin (BTC), which he sees as wasteful and unnecessary in the long run.

While Hoskinson acknowledged the importance of proof-of-work in the process of creating new BTC, he doesnt believe its effective when BTC is used as a financial instrument.According to Hoskinson, once BTC is mined, it could be moved onto a different, less energy-consuming blockchain in the form of wrapped assets:

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Cardano founder points out flaws in Ethereum and Bitcoin - Cointelegraph