Cardano Hoskinson Challenges Bitcoin's Layer 2 Vision

Cardano founder Charles Hoskinson recently expressed skepticism regarding Bitcoin’s Layer 2 developments. He posted his critical views on X. The post contrasted discussions at the recent Satoshi Roundtable event in Dubai, which focused on the potential benefits of the proposed solution.

Having been around for more than ten years, I have seen this narrative thrice. It follows the halving.

Every L2 venture will learn that it's impossible because Bitcoin cannot change enough to support the things required for a vibrant L2 environment. Both Ethereum and Cardano… https://t.co/56jbfCax4U
— Charles Hoskinson (@IOHK_Charles) February 4, 2024

On Feb 4, Muneeb Ali, co-creator of the Stacks protocol, shared on X. He said the Bitcoin community is more open to new projects. Many people were interested in Bitcoin Layer 2 at a meeting this week. Ali said the Bitcoin Layer 2 meeting was the biggest meeting at the event. There were multiple meetings about Bitcoin Layer 2 projects, BitVM, keeping the value connected to Bitcoin, and Bitcoin DeFi.

Quick thoughts from Satoshi Round Table in Dubai:

– The Bitcoin L2 session yesterday was the largest session I’ve seen here. Packed and 5 Bitcoin L2 projects there.

– Today, multiple parallel sessions going on about Bitcoin L2s, BitVM, peg security, Bitcoin Defi etc.

– BitVM…
— muneeb.btc (@muneeb) February 4, 2024

While the discussion centered on anticipation about BitVM, a potential path towards Bitcoin Layer 2 solutions, and growing acceptance of Layer 2 investments, Hoskinson emphasized a differing viewpoint. Contrasting Bitcoin with Ethereum and Cardano, Hoskinson asserted Bitcoin lacks the potential to support extensive Layer 2 solutions.

He stated every Layer 2 venture will learn it’s impossible because Bitcoin cannot change enough to support a vibrant Layer 2 environment. Hoskinson said both Ethereum and Cardano continually upgrade to enhance developers’ options for deploying effective, efficient, reliable, and secure Layer 2 solutions.

Cardano’s Plutus V3 Upgrade, Bitcoin’s Limits

Adding intrigue to his points, Hoskinson illustrated the constant upgrades and developments Ethereum and Cardano undergo. He added Cardano’s upcoming Plutus V3 upgrade with BLS support, which aims to improve experiences with the Layer 2 system.

Furthermore, Hoskinson reiterated Bitcoin will not “change or add any additional functionality.” His comments underscored Bitcoin Layer 2 solutions are “insanely” impossible without centralized or federated infrastructure. Also, Hoskinson labeled the Satoshi Roundtable event as another typical Bitcoin halving event narrative he has witnessed three times.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.