The founder of Cardano (ADA), Charles Hoskinson, recently expressed his concerns about the future of Layer-1 networks in light of the emergence of the GAFAM
Cardano (ADA) founder Charles Hoskinson recently shared his thoughts on the future of Layer-1 networks, expressing concerns about the role of GAFAM (Meta, Google, Apple, Microsoft, and Amazon) in the blockchain space. According to Hoskinson, these tech giants could potentially dominate the crypto landscape, overshadowing current blockchains.
In a livestream on X, Hoskinson stated that the real competition for blockchains like Cardano, Ethereum, Solana, or Bitcoin is not other cryptos, but large tech companies. He believes that once regulations are in place, these companies will be able to easily integrate blockchain solutions into their existing services. For instance, he imagines a scenario where Android and iOS would default to incorporating a crypto wallet, making decentralized solutions less appealing to users.
In addition to a vast infrastructure, big tech companies also boast an expansive user base, with some reaching up to 3 billion users. Through their payment services (e.g., Apple Pay, Google Pay), they could swiftly launch their own stablecoins or partner with established players like Circle.
Hoskison also highlights the fact that these companies already control the operating systems of the majority of smartphones worldwide. This gives them substantial power to impose their own blockchain solutions, to the detriment of current decentralized crypto networks.
If tech giants like Apple, Google, or Microsoft were to launch their own blockchain or Layer 1 network, the current crypto industry could face a major upheaval. With their immense user base and control over operating systems, these companies would quickly impose their solutions, rendering many decentralized projects obsolete.
Bitcoin, Ethereum, Solana, and even Cardano could see their adoption slow down or even decline in the face of centralized alternatives that are more accessible and integrated into existing ecosystems. This would go against the founding principles of crypto, jeopardizing the decentralization and financial sovereignty of users.
The arrival of tech giants in the blockchain universe could therefore mark a decisive turning point for the crypto industry. If these companies succeed in imposing their own centralized networks, they risk overshadowing existing decentralized projects, threatening innovation, financial sovereignty, and the fundamental spirit of cryptocurrency.
