- Hoskinson said that Algorand could be better into becoming a sidechain of Cardano.
- The biggest DeFi protocol on layer-1 blockchain Algorand, Algofi announces shutdown.
Charles Hoskinson, the founder of Cardano, has recommended to Algorand (ALGO), a competing blockchain system, that the layer-1 network move its code to Cardano. The founder of Cardano responded to a tweet from the chief technical officer of the Algorand Foundation, John Woods, by making a public appeal for participation.
It might be prudent for Algorand to consider becoming a sidechain of Cardano. Always here to help. https://t.co/h3lQeF7WlK
— Charles Hoskinson (@IOHK_Charles) July 12, 2023
John has created a video explaining where staking stands on the Algorand platform, the safety features it offers, and its potential for future expansion. Although the focus of the video was on Algorand, John did mention Cardano as a leading Delegated PoS protocol.
Leveraging Established Protocols
Evidently considering this, Hoskinson said that Algorand could be better to look into becoming a sidechain of Cardano. Sidechains are commonplace in the digital currency ecosystem. Each one has its own quirks but often leverages the established protocols and security measures of the main chain.
It takes time to develop a stable staking setup that is well-structured and backed by smart contracts. It is said that Cardano’s edge over Algorand’s thriving ecosystem is due to the former’s centralization. While the latter’s strength lies in the breadth and depth of its developers. One major point of contention is the fact that blockchain technology is inherently decentralized.
The biggest decentralized financial protocol on layer-1 blockchain Algorand, Algofi, has announced it would shut down because of a “confluence of events” making it impossible to keep it running at an optimal level. A blog post said that the platform, which allows for lending, borrowing, and trading, will soon switch to a withdrawal-only mode.
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