Charles Hoskinson, the founder of Cardano, recently unveiled an ambitious plan: selling Cardano’s robust security to other blockchains. This could be a huge money-maker for Cardano.
Cardano: The Ultimate Security Provider?
Hoskinson believes Cardano’s proof-of-stake (PoS) system is top-notch, and incredibly expensive to build. He sees no reason not to leverage this strength by offering it as a service to other blockchains. This is based on a growing trend called “actively validated services” (AVS), where one blockchain provides security to others.
How it Works: Actively Validated Services (AVS)
AVS lets other blockchains essentially “rent” security from established ones like Cardano. This lowers the cost and complexity of launching new blockchains while boosting their security. Hoskinson pointed to similar projects like EigenLayer and Karak, which have already attracted major investments and partnerships with companies like Coinbase, Lightspeed, and DCG.
Who Benefits?
Under this model, Cardano’s stake pool operators (SPOs) would earn extra tokens, which they could either convert back to ADA or keep. The Cardano treasury could also get a cut, depending on how things are set up.
Beyond Security: Multi-Resource Consensus
Hoskinson also discussed another major development: multi-resource consensus. This involves combining different consensus mechanisms (like proof-of-stake and proof-of-work) to make Cardano even more resilient and secure against attacks. He highlighted the potential for this to open doors for new applications, such as AI and social media.
The Big Question: Stagnation or Growth?
Hoskinson framed the current discussions around Cardano’s budget and roadmap as a crucial turning point. He questioned whether Cardano’s network effect is strong enough to justify standing still, arguing that selling security is a smart way to monetize something Cardano already has.
What’s Next?
Hoskinson promised more videos explaining Cardano’s roadmap and the reasoning behind these big decisions. He’s aiming to make things clearer for everyone. At the time of writing, ADA was trading at $0.8184.
