Hoskinson Criticizes Ethereum’s Centralized Governance

Cardano founder Charles Hoskinson, while speaking at the Token2049 event, has criticized Ethereum’s governance model, stating that the network works more like a dictatorship. The founder also said that Ethereum’s development is controlled by its co-founder Vitalik Buterin, which contradicts the decentralized ideals that blockchain networks aim to promote.

Hoskinson’s Remarks 

Hoskinson’s remarks highlight a broader debate about how decentralized a blockchain can truly be. He said that Ethereum’s governance largely revolves around Buterin’s vision, which he claims makes Buterin the de facto leader. This has led to concerns over how much influence one person should have over such a network.

Over Dependence on Vitalik 

However, Hoskinson did add that if Buterin were to step down, Ethereum might struggle to adapt and innovate. For instance, he said that Ethereum’s roadmap has shifted away from base-layer optimizations like sharding towards layer-2 solutions and rollups due to Buterin’s leadership. While Hoskinson acknowledged Buterin’s contributions, he put stress on the dangers of over-reliance on one person.

Ethereum’s governance is not entirely centralized. Decisions are influenced by a mix of on-chain and off-chain governance systems, with core developers and the wider community playing a role in protocol changes. But, Hoskinson believes that too much power lies in Buterin’s hands. He went on to compare the system to a monarchy in which a single figure guides the network’s future.

Cardano’s Governance Model

In comparison to Ethereum, Hoskinson praised Cardano’s governance model. He said Cardano’s recent updates, including the introduction of a member-based organization called Intersect and its Voltaire governance phase are aimed to avoid both the dictatorship of Ethereum and the anarchy of Bitcoin. 

The governance model of Cardano blockchain involves few elected representatives and a community vote on protocol upgrades and proposals. This makes sure that the project remains decentralized even if Hoskinson is not there. According to him, this makes Cardano a more resilient and sustainable option for the future.

Ethereum on the other hand has been quite active itself at Token2049 event. Vitalik spoke about their recent accomplishments and other innovations of L2 networks. He also added how the fee reduction has helped Ethereum become the most affordable blockchain.