{"id":10425,"date":"2024-02-05T12:58:04","date_gmt":"2024-02-05T10:58:04","guid":{"rendered":"https:\/\/forklog.com\/en\/charles-hoskinson-criticizes-bitcoins-l2-development\/"},"modified":"2024-02-05T12:58:04","modified_gmt":"2024-02-05T10:58:04","slug":"charles-hoskinson-criticizes-bitcoins-l2-development","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/charles-hoskinson-criticizes-bitcoins-l2-development\/","title":{"rendered":"Charles Hoskinson Criticizes Bitcoin&#8217;s L2 Development"},"content":{"rendered":"<p>Charles Hoskinson, the founder of Cardano, has expressed skepticism regarding the development of second-layer solutions on the blockchain of the first cryptocurrency.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Having been around for more than ten years, I have seen this narrative thrice. It follows the halving.<\/p>\n<p>Every L2 venture will learn that it&#8217;s impossible because Bitcoin cannot change enough to support the things required for a vibrant L2 environment. Both Ethereum and Cardano\u2026 <a href=\"https:\/\/t.co\/56jbfCax4U\">https:\/\/t.co\/56jbfCax4U<\/a><\/p>\n<p>\u2014 Charles Hoskinson (@IOHK_Charles) <a href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1754158382955815339?ref_src=twsrc%5Etfw\">February 4, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cEvery L2 project will realize it&#8217;s impossible because Bitcoin cannot change enough to provide adequate support for a dynamic second-layer environment. Ethereum and Cardano are constantly updating to expand developers&#8217; capabilities to deploy efficient, effective, reliable, and secure solutions,\u201d he believes.\u00a0<\/p>\n<\/blockquote>\n<p>Hoskinson&#8217;s comments came after the 10th annual <a href=\"https:\/\/satoshiroundtable.org\/\">Satoshi Roundtable<\/a>, attended by leading figures in the crypto industry.\u00a0<\/p>\n<p>Stacks co-founder Muneeb Ali noted that second-layer ideas for Bitcoin were actively discussed at the event.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Quick thoughts from Satoshi Round Table in Dubai:<\/p>\n<p>\u2014 The Bitcoin L2 session yesterday was the largest session I\u2019ve seen here. Packed and 5 Bitcoin L2 projects there.<\/p>\n<p>\u2014 Today, multiple parallel sessions going on about Bitcoin L2s, BitVM, peg security, Bitcoin Defi etc.<\/p>\n<p>\u2014 BitVM\u2026<\/p>\n<p>\u2014 muneeb.btc (@muneeb) <a href=\"https:\/\/twitter.com\/muneeb\/status\/1754145476524327222?ref_src=twsrc%5Etfw\">February 4, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe Bitcoin L2 session was the largest I\u2019ve seen at these gatherings. Five second-layer projects for the blockchain were presented. There were also several parallel sessions on L2 in the first cryptocurrency network, BitVM, peg security, Bitcoin-DeFi, and more,\u201d Ali reported.\u00a0<\/p>\n<\/blockquote>\n<p>According to him, three to five L2 projects based on Bitcoin will launch in the next six months, with over ten similar protocols appearing in the following 12-18 months.\u00a0<\/p>\n<p>Hoskinson emphasized that the blockchain of digital gold cannot \u201cchange existing or add new functionality\u201d for technical reasons. Therefore, interaction with Bitcoin-L2 will be \u201cinsanely complex\u201d and require the creation of a \u201ccentralized and federated\u201d infrastructure, the developer believes.\u00a0\u00a0<\/p>\n<p>In response, Ali pointed to the BitVM mechanism, designed to expand Bitcoin&#8217;s smart contract capabilities without needing a network upgrade.<\/p>\n<p>The Cardano co-founder stated that he had studied the project, but in his view, it still has many shortcomings:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe problem lies in gaining benefits from L2 and beyond, the security model, settlement delay, and many other functional requirements for practical DeFi. It works until issues arise and you need something from the main network. Bitcoin won&#8217;t provide it, so you give up and switch to multisigs by the end of your project. Then you pretend it&#8217;s somehow decentralized and everything is fine, but it&#8217;s not.\u201d\u00a0<\/p>\n<\/blockquote>\n<p>Previously, Hoskinson and Blockstream CEO Adam Back debated Bitcoin&#8217;s decentralization. The former suggested that a 51% attack would require only three subpoenas to the owners of the largest mining pools.<\/p>\n<p>In October 2023, the head of Cardano accused Ethereum of plagiarizing the Ouroboros consensus protocol.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Charles Hoskinson, the founder of Cardano, has expressed skepticism regarding the development of second-layer solutions on the blockchain of the first cryptocurrency.\u00a0 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&#8217;s impossible because Bitcoin cannot change enough to support [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10424,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,471,1179],"class_list":["post-10425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-charles-hoskinson","tag-layer-2-solutions"],"aioseo_notices":[],"amp_enabled":true,"views":"38","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=10425"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/10424"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=10425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=10425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=10425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}