Cardano Co-Founder Questions Bitcoin’s Governance, Points to Development Limitations

Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Trent Alan
Author Categories
About Author

Trent has a background and education in journalism and communications, with two decades of experience editing and writing on a diverse array of topics. In recent years, however, he has shifted his...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Charles Hoskinson questions Bitcoin's governance model
Charles Hoskinson questions Bitcoin’s governance model and its limitations in development.
Image by peterschreiber.media, Adobe Stock

In an interview yesterday, Cardano and Ethereum co-founder Charles Hoskinson expressed concerns over Bitcoin’s governance model and its limitations in development. 

The discussion, hosted by crypto YouTuber Coin Bureau, offered insights into contrasting governance models between Cardano and Bitcoin.

Cardano vs. Bitcoin: A Governance Comparison

The concept of governance in blockchain platforms is increasingly gaining attention as the industry matures. Governance mechanisms dictate how decisions are made and implemented within a blockchain ecosystem, directly impacting its adaptability and long-term viability. 

During the interview Hoskinson pointed out the approach to governance as a key differentiator between Cardano and Bitcoin.

He remarked on Bitcoin’s “inability to upgrade,” stating, “Bitcoin’s lack of governance has held it back in so many ways. [By drawing from successful governance systems] we can sort out a lot of the problems Bitcoin has had with its inability to upgrade.”

Hoskinson cited specific instances where Bitcoin’s governance has led to missed developmental milestones. 

For example, he mentioned Bitcoin’s failure to implement colored coins and sidechains. 

Colored coins are a concept that involves tagging specific Bitcoin transactions to represent ownership of external assets, often cited as an early precursor to modern Non-Fungible Tokens (NFTs), while 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.

According to him, these are examples of missed opportunities that resulted from the cryptocurrency’s existing developer structure.

The Cultural Aspect: Bitcoin’s ‘Religious Monoculture’

Culture within a blockchain community can be a double-edged sword. On the one hand, a strong, unified culture can help maintain the integrity and focus of a project. On the other hand, it can lead to stagnation if it becomes too resistant to external ideas and innovations. 

Hoskinson described Bitcoin as having a “religious monoculture” or “cult” that treats the opinions of core developers as beyond questioning. This, he argued, stands in direct opposition to Cardano’s goal of being an “open-source project” that can “admit maybe somebody else had a better idea” than its founders.

Hoskinson also discussed the future relevance of Bitcoin in the broader crypto ecosystem. 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,” he noted that it has largely abstained from participating in other emerging sectors like decentralized finance and non-currency use cases.

The issues raised by Charles Hoskinson about governance and development within the Bitcoin community invite a broader contemplation on the importance of adaptability in blockchain technology. As the crypto space matures and demands for varied functionalities rise, a governance model that allows for dynamic upgrades could become a major competitive advantage.

More Articles

Price Analysis
Will Trump’s Tariffs Boost Bitcoin: Down 5% Again
Arslan Butt
Arslan Butt
2025-02-08 14:39:24
Price Analysis
Solana Struggles: Price Down Almost 15% in a Week – Is It Time to Buy?
Arslan Butt
Arslan Butt
2025-02-08 13:22:54
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors