Key Points
Charles Hoskinson, founder of Cardano (ADA), recently shared insights about a cryptocurrency project that almost surpassed Ethereum (ETH) during its inception.
The Crypto Competitor That Almost Surpassed Ethereum
In a conversation with Altcoin Daily, Hoskinson named NXT as the crypto project that posed a significant threat to Ethereum in its early days.
He was the CEO of Ethereum from 2013 to 2014 and admitted that NXT was the crypto project that scared him the most.
Hoskinson’s fear stemmed from NXT’s sudden emergence and remarkable growth within three months.
NXT, built on Java, had an engaged community and was rapidly adding features and user-driven assets to its product offering.
Interestingly, NXT had already adopted the proof-of-stake mechanism and had plans to implement smart contracts on their network while Ethereum was still utilizing a proof-of-work mechanism.
Despite its rapid growth and promising features, NXT did not sustain its success.
Hoskinson believes the downfall of NXT was due to their inadequate token distribution and lack of a robust governance system which led to the team fracturing and branching out into new projects.
He suggested that Ethereum might not have existed if NXT had implemented a proper governance system, as it could have continued to grow and become the leading cryptocurrency.
The Role of Governance in Crypto Projects
Following his insights on NXT’s downfall, Hoskinson emphasized the importance of governance in the crypto ecosystem.
He stated that governance is a core determinant of whether a project will succeed or fail.
He further pointed out that poor governance can lead to a project’s failure, citing Microsoft’s fall behind Google, Apple, and Facebook as an example.
Hoskinson also highlighted the advantages of decentralized governance in running a crypto ecosystem, stating that it is a goal they aim to achieve with Cardano.
Cardano is on the brink of implementing the Chang Hard Fork, which will initiate the “Voltaire” era focused on decentralized government.
Once this network upgrade is completed, Cardano’s ecosystem will become community-driven.
Hoskinson asserts that Voltaire will be the “most advanced blockchain governance system.”
