Why a Blockchain Like Cardano Needed a Company Like IOHK
During the third BlockDown conference, Charles Hoskinson, IOHK CEO, detailed how his company approached Cardano’s creation.
Mentioning that IOHK is a research and development firm, he explained that they saw Cardano as an empty page and began by asking the most basic questions first. They then used the answers to build a solid mathematical foundation for a secure and scalable ecosystem.
Hoskinson believes that his attentive and calculated approach to developing things as intricate and new as blockchains is one of the things that made Cardano what it is today.
He said that IOHK tends to consider the things that it builds in generations. For instance, Bitcoin is regarded as a first-generation blockchain that tried to find out if decentralized technology works. Then, Ethereum appeared, the second-generation of the technology, making a revolution in the sector. Still, even the most advanced build of the technology came with a few flaws.
The Inception of Cardano
According to Hoskinson, Ethereum has an issue that is difficult to resolve; namely, it hosts thousands of decentralized applications (DApps) whose systems are all reproduced. This means that if Ethereum cannot scale, none of the DApps built on its blockchain can.
However, creating an infinitely scalable system is not the only solution to this. Hoskinson said that history has shown that as soon as a network scales enough, disagreements on where it should head next are prone to appear.
This usually led to forks, as it happened to Bitcoin Cash and Ethereum Classic. He explained such issues cannot plague a real-life system that wants to become a genuine alternative for an economy.
That is why, in 2015, IOHK took a blank slate approach to Cardano’s development and began by taking apart the system to its most basic elements. That’s why the process started with a simple but incredibly underrated question – What is blockchain?
Ending the interview, Hoskinson said he was looking forward to the industry collaborating to define a set of standards that can be included in a vast array of projects and give the sector the maturity and recognition it deserves.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.