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Combining Bitcoin's liquidity with Cardano's platform capabilities may create a game-changing market in cryptocurrency. In a recent Tokyo interview on the Humans by Socious podcast, Cardano founder Charles Hoskinson shared his vision for decentralised finance. He revealed how Cardano's unique blockchain design and governance system can unlock DeFi on Bitcoin networks. Hoskinson believes a massive new market opportunity can be tapped by merging Bitcoin's vast marketplace liquidity with Cardano's platform architecture.
Cardano's defining element is its on-chain treasury, which currently holds $1.5 billion in assets. Hoskinson explains that the community maintains complete control over proposal voting and upgrade financing without external interference through its treasury and formal governance structures. The speaker noted that Bitcoin, Ethereum, and Solana do not possess the same decentralised governance features as Cardano.
According to Hoskinson, Cardano implements an enhanced version of UTXO known as EUTXO that provides Bitcoin's transaction facilities combined with complex smart contract capabilities. According to his assessment, the Cardano architecture is better for developers constructing Bitcoin-compatible applications. By implementing smart contract languages Aiken and Plutus, Cardano targets DeFi capability between multiple chains.
The network builds connections with infrastructure providers, including Bitvmx FORCE, to facilitate the development between off-chain and on-chain operations. The development support enables developers to simultaneously generate and deploy smart contracts for Cardano and Bitcoin through one common environment.
Hoskinson contrasted Cardano against Ethereum and Solana by breaking down their governance systems, security methods, and distinctions in development methodology. His analysis demonstrated that these platforms deliver superior smart contract features, yet they remain deficient in Cardano’s built-in formal methods and regulatory structure. Per Hoskinson, Cardano represents the superior platform for establishing Bitcoin DeFi operations that will persist.
He stated that Cardano development required more time than predicted to reach its goal. He explained that peer-reviewed research and formal verification procedures caused these delays since they aim to guarantee lasting security measures and scalability improvements.
According to Hoskinson, the adoption of Bitcoin DeFi remains at an initial stage, he also pointed out Stacks and Babylon as examples. His assessment of these systems' present Total Value Locked (TVL) reached $5.8 billion as he emphasised that Cardano constitutes the best platform to catalyse growth in this sector. At the same time, ADA maintained a price of $0.64.
