Cardano’s Vision: A Universal Security Provider and Beyond
In a recent livestream, Charles Hoskinson, the visionary founder of Cardano, unveiled a groundbreaking future for the blockchain network. He proposed a plan to monetize Cardano’s unparalleled security infrastructure by offering it to other blockchain networks. This innovative strategy centers around actively validated services (AVS), a burgeoning trend in the cryptocurrency world that capitalizes on established proof-of-stake security to bolster external systems.
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Cardano as a Pioneering Security Provider
Charles Hoskinson outlined how Cardano’s proof-of-stake (PoS) mechanism stands as one of the most secure in the blockchain industry. He proposed leveraging this robust system as a service to generate a new, lucrative revenue stream. “We realize that Cardano’s PoS is incredibly secure,” Hoskinson emphasized. “With a $25 billion valuation over two years, building a network with this level of security is costly. So, why not monetize it?”
Unlocking AVS Potential
The concept of AVS allows blockchain ecosystems to effectively ‘rent’ security from established networks, minimizing the costs and barriers associated with launching new networks while simultaneously enhancing their security. Hoskinson cited networks like EigenLayer and Karak, which have already successfully implemented similar models, attracting substantial investment.
“Partner chains research aims to transform Cardano into a universal AVS layer similar to Karak,” Hoskinson explained, highlighting the potential value in the tens of billions of dollars. He also underscored how other AVS-utilizing projects have secured collaborations with industry giants such as Coinbase, Lightspeed, and DCG.
Under this innovative model, Cardano’s stake pool operators (SPOs) would enjoy multiple revenue streams, earning additional tokens that could either be converted back into ADA or retained separately. This model also presents an opportunity for the Cardano treasury to generate revenue, depending on its structure.
Diversifying Revenue Streams
“The stake pool operators gain access to diverse revenue streams,” Hoskinson noted. “They can convert these tokens back into ADA or choose to keep them independently. Additionally, if designed appropriately, the Cardano treasury can also benefit from this model.”
Embracing Multi-Resource Consensus
Beyond AVS, Hoskinson introduced another pivotal shift in Cardano’s roadmap: multi-resource consensus. This innovative concept involves merging different consensus mechanisms—such as proof-of-stake and proof-of-work—to bolster network resilience and inclusivity.
Enhancing Network Security
The transition toward multi-resource consensus is driven by concerns over potential vulnerabilities in PoS networks. “Imagine if proof-of-stake could be compromised—say, the U.S. government buys all the ADA and launches a 51% attack. What happens to the hash power or other elements?” Hoskinson questioned.
He emphasized that integrating multiple consensus mechanisms would not only fortify the network but also open doors to novel applications, including artificial intelligence and social media. “The ability to layer multiple consensus algorithms together is incredibly exciting because not only does it result in a highly resilient network, but it also allows for the aggregation of diverse resources,” Hoskinson explained.
Planning for the Future
Hoskinson framed the ongoing discussions around budget and roadmap as a crucial juncture for Cardano’s evolution. “Does Cardano possess enough network effect like Bitcoin that it can afford to stagnate?” he questioned. “Selling our consensus services allows us to monetize an asset we already own. It’s not hypothetical—it’s a decision of whether we should sell it or not.”
As Cardano gears up for the next stage of its development, Hoskinson committed to releasing more videos discussing the roadmap and the reasoning behind critical decisions. “Throughout this month, I’ll be extensively discussing the roadmap and the rationale behind these choices,” he stated.
As of the latest updates, ADA is valued at $0.8184, with potential for bullish trends in the near future.
