Charles Hoskinson described recent accusations on Twitter about Cardano as “noise and FUD”
The process of launching smart contracts on Cardano’s public testnet has been fouled by Ethhub.io co-founder Anthony Sassano. Sassano is one of the most vocal members of the Ethereum community and now he’s slandered Cardano again, causing FUD on Twitter in the past few days.
Is Cardano Actually Broken?
First, Sassano started the fight by posting a series of screenshots from a Reddit thread, shedding light on the problem Minswap, the Cardano swap exchange that was live on September 3, was going on.
The first dapp went live on Cardano today and ADA fanboys are finally discovering that you can’t peer review your way out of fundamental issues. pic.twitter.com/tYQXNcVKGN
— Anthony Sassano ?? (@sassal0x) September 4, 2021
Specifically, users kept getting errors when trying to swap tokens and provide liquidity. Accordingly, this is because Cardano’s extended unspent transaction output accounting model (EUTXO) can only handle one transaction output per block, rendering Minswap essentially unusable.
After the information posted by Sassano went viral, many people came to the conclusion that Cardano’s smart contracts were not working and the blockchain was broken. Even some members of the community started claiming that such a problem would be a death sentence to Cardano while calling into question the team’s peer-reviewed research.
However, the SundaeSwap Labs DEX on Cardano has helped dispel some misconceptions on the matter. They claim the platform can actually do hundreds of transactions per block. The project also floated the idea of creating an order book-based exchange on the Cardano blockchain, something that was not possible on Ethereum, or another hybrid exchange. SundaeSwap claims that they have come up with their own solution.
And then this information reached the ears of IOG CEO and Cardano founder Charles Hoskinson. During a recent AMA session, Hoskinson thought the recent accusations were too noise and FUD.
Charles Hoskinson
“Reddit won’t agree. Twitter won’t agree. Telegram won’t agree. Guys, it’s noise and it’s FUD. It is truly one of the hardest things in the world to build a truly scalable distributed system that is decentralized and admits Byzantine actors”, Hoskinson stated.
The Cardano founder explained that scaling smart contracts will require off-chain processing solutions like Hydra. He also pointed out how Ethereum is investing millions of dollars in solutions like Optimistic rollups (ORUs) as follows:
“You can’t build these systems in a way where they scale at billions of transactions per second on one system. You have to divide and conquer, you have to batch, you have to pre-process, you have to move things into different domains”, he said.
Hoskinson also said that it is possible to create a super complicated DEX as a side chain if there is enough demand and commercial activity. Meanwhile, the problem had some workarounds. Occam.fi, one of the participants of the Plutus Pioneer program, has come up with a decentralized solution to the problem. At the same time, ErgoDex also overcomes it by splitting transactions into batches but also creates centralization.
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