Live ADA/USD Chart

---

Charles Hoskinson, Cardano’s founder,  expressed grave concerns regarding the future of Layer-1 networks.

 

He cautions that once regulatory frameworks transprent, tech behemoths like Meta, Google, Apple, Microsoft, and Amazon may take control of the blockchain market.

These companies could create their blockchain infrastructure given their enormous financial and technological resources,  a serious threat to the decentralized networks that are currently in place.

Nevertheless, Hoskinson’s worries attract discussion in the blockchain sector about centralization versus decentralization. “The awkward reality that many people in this field don’t want to acknowledge is,” Hoskinson said in a recent X (formerly Twitter) stream.

“Neither Ethereum, Solana nor even Bitcoin are our rivals. It’s Google and Amazon, Apple and Microsoft.” He added

“What will happen is that when the regulations are passed, we’ll wake up and they’ll say, hey, by the way, let you know, like Android now has like a default crypto wallet,” he continued.

Hoskinson highlighted concerns about how big tech firms might use their current infrastructure to upend the blockchain market. With their payment services, Apple Pay and Google Pay, he said companies like Apple and Google are in a good position to launch their stablecoins or partner with well-known companies like Circle.

Therefore, these companies have a big edge over traditional Layer-1 networks because they already have billions of users integrated into their ecosystems and control the operating systems on mobile devices.

Hoskinson thinks that in the upcoming major wave of competition in the cryptocurrency industry, centralized tech giants pose a threat to the decentralized foundations of blockchain technology.

It’s much more difficult to compete with guys who have three billion users and control the operating system that runs on your phone, he said.