Cardano Could Unlock Bitcoin's Next Growth Phase with Non-Custodial Mechanisms
Charles Hoskinson, the founder of Cardano, believes that his blockchain can unlock the next major growth opportunity for Bitcoin. He stated in an interview that Cardano's architecture allows it to support Bitcoin through a non-custodial, trustless mechanism while maintaining tax neutrality, which is difficult to achieve on account-based blockchains.
Hoskinson highlighted Midnight, Cardano's privacy-focused sidechain, as a tool that could enable private Bitcoin lending and other decentralized finance applications without exposing users' holdings or transaction history. He noted that these capabilities could attract long-term Bitcoin holders seeking to earn yield while preserving privacy.
The Cardano founder also emphasized the upcoming Leios upgrade, which is expected to increase transaction throughput by roughly 60 times while enhancing scalability and interoperability. This will strengthen Cardano's foundation for decentralized finance (DeFi) and institutional adoption.