Charles Hoskinson, CEO of Input Output Global and co-founder of Cardano (ADA), has emphasized the importance of governance in the blockchain industry, stressing that it cannot be overlooked.

Speaking at a recent Web3 talk organized by Google, Hoskinson, who has been involved in the blockchain space for about 12 years, discussed various topics, including Bitcoin’s halving, the future of Cardano, and the importance of governance.

One of the main topics of the discussion was the creation and development of Cardano. Hoskinson explained the decision to use an extended UTXO (Unspent Transaction Output) model, which Bitcoin’s UTXO model inspired. Notably, this model offers a secure and versatile environment for processing multiple operations without system failures. It also provides better scalability, privacy, and simplified transaction logic, making it perfect for supporting smart contracts.

Hoskinson also discussed on-chain governance, Cardano’s current major focus, underscoring its pivotal role in the platform’s development trajectory.

“Governance is really not optional right it’s something that has to be built,” Hoskinson told Google’s Marlon Ruiz. “No matter who you are, when you create something that other people use, the first question people ask is ‘how do we upgrade maintain and change it to meet our needs and who gets to decide when’,” he added.

The crypto mogul emphasized that Cardano’s on-chain governance system is designed to enable democratic consent through delegation, direct voting, or elected representatives. According to him, these components ensure that the community’s needs are met, decisions are made efficiently, and the rights of all stakeholders are protected.

He further noted that this on-chain governance system will be activated in the coming months, allowing the Cardano community to participate in the decision-making process and influence the platform’s future development.

Hoskinson’s particular emphasis on governance comes even as Cardano approaches the Voltaire phase, marking the final stage in its developmental journey.

The imminent Voltaire era is set to propel Cardano towards self-sustainability, introducing a voting and treasury system. This new system will enable network participants to wield their stake and voting rights, allowing them to influence future network enhancements and developments.

The network’s developers are focused on enhancing scalability and interoperability within the ongoing Basho phase. It is important to note that while previous eras centred on decentralization and functionality, Basho’s primary objective is to enhance the network’s fundamental performance. 

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Filed under: Bitcoin - @ April 18, 2024 10:24 pm