Cryptocurrency and market experts describe main problem of the network
The CIO of cryptocurrency investing fund CyberCapital, Justin Bons, described on his personal Twitter page why the Cardano network was propped up by false promises and remains outdated and “least capable” among competition on the market.
The thread began with the description of all of the problems the newly emerged ADA smart contract platform has. According to Bons, it is not properly optimized and cannot handle capacity increases and fast processing because of script execution. With the further development of solutions on the Cardano network, it may become a bottleneck for all projects.
In addition to problems with processing, Bons highlighted the economic issues of the network, which is a lack of any sort of fee market. All transactions on Cardano are being processed on a “first seen basis” with no prioritization of transactions. The main problem with such a mechanism is the possibility of a spam attack, which will block the usage of ADA.
On the other hand, which the CyberCapital CEO prefers not to mention, such a mechanism opens up the network for anyone making it more effective in terms of payments and transaction costs, contrary to networks like Ethereum which, when congested, may demand up to $100 per transaction.
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Bons also mentioned Charles Hoskinson’s promise to eat his own shoes if the Cardano staking function would not be implemented by 2019. Unfortunately for Charles, the technology was not implemented and the promise was forgotten. The expert also noted that this is not the only promise Cardano management gave to ADA holders.
He then noted that he understands that Cardano is working on major breakthroughs in the future but, at this point, it is not enough as both the market and development performance of the network is far from keeping pace with the industry.