Cardano Success is Linked to Decentralized Finance (DeFi)

Charles Hoskinson, the founder of Cardano (ADA), explained how he would consider that Cardano reached success. In a recently uploaded YouTube video, Hoskinson talked about the future of Cardano and how he thinks that the project could be successful. Furthermore, he explained which are the main features Cardano would need in order for that to happen. 

DeFi Could Mean Success for Cardano

During the YouTube conversation Mr. Hoskinson had with his followers, he stated that Cardano has truly made a difference in the cryptocurrency market. Indeed, Cardano is now the 5th largest virtual currency in the world with a market capitalization of $38 billion and a price per coin of $1.21. 

Regarding Cardano’s expansion and success, Hoskinson said that he likes the DeFi platform called Kiva. This platform allows users to give out loans and borrow money. Hoskinson explained that he gives out loans through this platform, showing that it works very well and in a decentralized way. 

However, he considers that Cardano would succeed when he would be able to open an application such as Kiva, lend assets and receive the funds back plus interest.

About it, Hoskinson said:

“I know that Cardano has truly made a difference and changed the world if I can open up an application just like Kiva and I can have a direct relationship with someone somewhere in the world who is not doing so well and I can actually give them not as a gift, not as charity, but a loan to them and they pay me back. That to me would mean success for Cardano.“

In order for that to happen, Hoskinson explained that it is necessary to build an identity system. In addition to it, there should also be a payment system that can work all over the world. That includes places where access to the internet is limited and intermittent. 

Furthermore, the identity system would give you a reputation. In this way, users would be able to know which users they can loan the funds to. In addition to it, there should also be a way to spend the funds the borrower receives. That includes creating a system of stablecoins that would work in different countries and regions. 

Moreover, users should be able to receive their funds back. Not only this, but the funds they receive should also include a profit. In this way, the whole cycle would be repeated and improved over time. Other possible features would include DEXs and also oracles. 

Via: 2Usethebitcoin.com

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