Charles Hoskinson: ‘Ethereum, Solana, Bitcoin aren’t competition – Big tech is’

• Hoskinson warns that tech giants could dominate blockchain once regulations become clear.
• Cardano gains attention amid Microsoft collaboration rumors and Grayscale’s ETF filing.

As the crypto landscape continues to evolve, Cardano [ADA] founder Charles Hoskinson has raised a critical concern about the future of Layer-1 networks.

He warns that tech giants like Meta, Google, Apple, Microsoft, and Amazon could potentially dominate the blockchain space once regulatory frameworks become clearer.

Given their vast resources and technological capabilities, these corporations could establish their own blockchain infrastructure, posing a significant challenge to existing decentralized networks.

Cardano founder on concerns surrounding L1 networks

That being said, Hoskinson’s concerns highlight the ongoing debate over centralization versus decentralization in the blockchain industry. 

In a recent stream on X (formerly Twitter), Hoskinson noted, 

“And the inconvenient truth that a lot of people in this space don’t want to admit is. Our competitors are not Ethereum, Solana, or even Bitcoin. It’s Microsoft and Apple, Google and Amazon.”

He added, 

“What’s going to happen is when the regulations get passed, we’re going to wake up and they’re going to be like, hey, by the way, let you know, like Android now has like a default crypto wallet.” 

Hoskinson further illustrated his concerns by pointing out how major tech companies could leverage their existing infrastructure to disrupt the blockchain space.

He suggested that firms like Apple and Google, with their payment services—Apple Pay and Google Pay—are well-positioned to introduce their own stablecoins or collaborate with established players like Circle.

What’s more?

Thus, with billions of users already integrated into their ecosystems and control over the operating systems on mobile devices, these corporations have a significant advantage over traditional Layer-1 networks.

As expected, Hoskinson sees this as the next major competitive wave for the crypto industry, where centralized tech giants could challenge the decentralized foundations of blockchain.

He said,

“How the f**k are you going to compete with guys who have 3 billion users and they own the operating system that’s on your phone? That’s a lot harder. So that’s the next wave of competitors that are coming. And I can see a world where those guys actually launch a layer one.”

Additionally, Hoskinson pointed to Meta’s previous attempt to enter the crypto market, which ultimately failed due to regulatory uncertainty.

However, he suggested that the landscape could soon change, as sources indicate that the U.S. Congress might pass a stablecoin bill within the next 100 days.

If this happens, he believes tech giants like Meta, Google, Apple, and Microsoft will seize the opportunity to expand into blockchain and digital assets.

What lies ahead for Cardano’s ADA?

Needless to say, Hoskinson’s recent remarks, coupled with speculation about a potential collaboration with Microsoft, have fueled optimism around Cardano’s future.

The excitement was further amplified by Grayscale’s move to file for a Cardano ETF, drawing increased attention from institutional investors.

While ADA’s long-term prospects remain promising, market volatility persists, with the token currently trading at $0.7801 after a 2.55% decline in the past 24 hours, according to CoinMarketCap.

Ergo, as regulatory clarity unfolds and industry giants explore blockchain integration, Cardano’s position in the evolving crypto landscape will be one to watch.