Charles Hoskinson, founder of Cardano, now believes that decentralized finance (DeFi) applications on the Bitcoin network will surpass those of Ethereum and Solana, in stark contrast to his earlier skepticism about the future of Bitcoin.
This change in perspective follows a recent partnership between Cardano and BitcoinOS, which aims to bridge the gap between the two blockchains and enable smart contract features on Bitcoin, opening the door to a new wave of decentralized applications. On October 25, Hoskinson expressed his enthusiasm for the integration on Twitter, stating his intention to actively support its development.
“With Babel Fees, they will be able to write Aiken and pay fees in Bitcoin. This is just the beginning. DeFi coming to Bitcoin will eclipse Ethereum and Solana,” Hoskinson saidreferring to Aiken, a programming language used to create smart contracts on Cardano, and Babel Fees, a mechanism that allows users to pay transaction fees on Cardano using other cryptocurrencies, including Bitcoin.
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From Skeptic to Defender: A Change of Mind
Hoskinson’s new optimism marks a significant shift from his previous stance on Bitcoin. A few months earlier, in a widely circulated video, he questioned the relevance of Bitcoin in the evolving cryptocurrency landscape. He claimed that although Bitcoin depended on the industry for its survival, the industry itself no longer needed Bitcoin.
“Bitcoin needs the industry to survive… But the industry no longer needs Bitcoin. I just don’t see how this survives. It’s a religion, it’s not an ecosystem. So no, we don’t necessarily need Bitcoin,” he said at the time.
However, the recent collaboration between Cardano and BitcoinOS, particularly the implementation of the BitcoinOS Grail bridge, seems to have influenced his opinion. This bridge allows for seamless interaction between the two blockchains, facilitating the development of DeFi applications on the Bitcoin network.
Empowering Developers and Expanding Bitcoin’s Capabilities
To further strengthen integration, Hoskinson announced plans to relaunch the Bitcoin Education project in 2025, providing developers with the resources and knowledge needed to build on the Bitcoin network. It also plans to offer training on Aiken and introduce tools allowing the creation of hybrid Cardano-Bitcoin applications.
“This marks the beginning of DeFi on Bitcoin, and (I) think it could surpass the achievements of Solana and Ethereum in the future,” Hoskinson explained.
