Venture capitalist worries about Cardano and questions Network’s decentralization claims

Justin Bons, the founder of Cyber ​​Capital, has done just that launched a scathing attack on Cardano, claiming the Ethereum competitor is ‘centralized’. Venture capitalists are convinced that this level of centralization, at the protocol level, is a “major weakness of the proof-of-chain blockchain.”

Founder: Cardano is centralized

According to Bons’ assessment, there is a problem with Cardano’s ‘genesis keys’. Technically, these keys are a multi-signature system that provides control over the core protocol rules.

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The Genesis Keys were introduced during the third phase of Cardano’s development: Shelley. The problem is that these “keys were not a temporary measure, but were released as part of the network design.” As previously designed, the IOG did not have the absolute power of the Genesis Keys.

However, the Cardano Foundation’s decision to delegate control to the developer meant that IOG was now in control.

Cardano price rises on daily chart |  Source: ADAUSDT on Binance, TradingView
Cardano price rises on daily chart | Source: ADAUSDT on Binance, TradingView

The alleged centralization, Bons claims, is that IOG “controls five of the seven genesis keys.” This allows the developer to unilaterally change the protocol without community consensus. This level of control, the founder adds, “goes against Cardano’s claims that the platform is one of the highly decentralized ones, even better than Ethereum.”

That IOG has this power, Bons continued, means “she can misuse these keys and even disrupt the network.” For example, the developer can prevent the blockchain from processing blocks, or change how ADA is distributed to validators.

The Venture Capital founder claims that the centralization of Genesis keys can being seen in deliberately slow development approach. Unlike competitors like Solana, Cardano is still being refined, with IOG planning to improve efficiency once Voltaire goes live.

Cardano Roadmap |  Source: Cardano
Cardano Roadmap | Source: Cardano

Will Voltaire increase levels of decentralization?

For example, by design, public blockchains such as Ethereum or Bitcoin are decentralized. While the level of decentralization varies as they evolve, validators are guaranteed not to censor transactions or roll back some, even with extremely disruptive hacks.

The resistance to censorship gives these ledgers an edge over centralized options, which explains the rapidly increasing adoption across the board.

How IOG and the Cardano community will resolve this remains to be seen. In the next phase of development Voltairewill introduce on-chain governance to the network. This makes the use of Genesis keys a thing of the past.

Feature image from Canva, chart from TradingView

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