The extinction of most DeFi projects is bound to occur in the next decade due to insufficient engineering, predicts Charles Hoskinson.
Factors that have a huge impact in implementing DeFi projects are resilience, and strong infrastructure of engineering, in order to result in a better outcome.
The issue that Hoskinson sees is the mindset that many projects are relying on. The longevity and value of projects are mostly dependent on hope and prayer, rather than a robust engineering level to eliminate these current problems.
Hoskinson is raising attention to the low-quality present in the current DeFi projects in the marketplace. In the recently published YouTube video, the founder and CEO of Cardano supports this by backing up the high number of cyber attacks that took place in 2021 alone, while pointing out the Ethereum blockchain for the low level of security that contributed to approximately $10.5 billion being lost to exploitation attacks.
“Unfortunately, many of the projects in this space will not stand the test of time. We will see a great extinction occur in the next five to 10 years, the reason you do things right, is so that you can be around for that extinction event. Many of you are tired of the incredible cost, the lack of clarity and the low production quality of applications in the DeFi space,” said Hoskinson.
Moreover, Hoskinson revealed that Cardano is focused on developing a new system that will allow building upon and improving current flaws, by enhancing checks and balances through public and private partnerships in addition to certification standards.
When looking at the long-term goals of Cardano, Hoskinson mentioned that the year 2022 will be powerful in implementing upgrades for a better and more secure chain performance. Prism integration and light wallets are among the multiple updates that will be included in Cardano.
In general, Cardano has incurred a growth of more than 1,200% compared to last year’s Christmas figure of 190,000 to 2.5 million wallets on the 24th of December, 2021.
Lastly, Hoskinson announced the Alliance of Cardano DeFi (CDA), which encompasses diverse players developing in the Cardano network whose purpose is building a ‘robust and dynamic’ DeFi space that will serve as a model for the whole DeFi sector.