Cardano Founder Reveals How Wrapped BTC Can Boost Usage

Cardano founder Charles Hoskinson in his latest podcast spoke in detail on the Bitcoin network, mining, and the significance of wrapped bitcoin [wBTC].

BTC mining has come under heavy scrutiny for its impact on the environment with some studies comparing it to oil refining. Calling for an end to mining, Hoskinson said the king coin may leave on as wrapped Bitcoin on other networks.

Wrapped Bitcoin is BTC on smart contracts-enabled platforms like Ethereum [ETH], Cardano [ADA], and others. Typically wrapped cryptocurrencies enable crypto assets to be used on blockchains to which they are not native. 

Wrapped Bitcoin for one, is an Eth token that is intended to represent Bitcoin on the Ethereum blockchain.

Hoskinson emphasized that the Bitcoin blockchain is now primarily designed for mining. He claims that because the blockchain is not intended for that use, efforts to build atop it have had limited success.

According to the founder, wrapping can help increase Bitcoin’s usage and adoption by transferring every newly produced Bitcoin to the larger crypto ecosystem.

“[Wrapped Bitcoin] could be used in all kinds of Dapps and smart contracts and potentially be used by nation-states to create a means of exchange and unit of account to actually have a stable currency they could use with a sound monetary policy.”

He asserts that the wrapped Bitcoin is still Bitcoin because it still possesses all of the characteristics of the asset and predicted that more wrapped BTC would be on other blockchain networks in the next five years.

Cardano Founder Outlines How ADA is Primed For Mass Adoption

Hoskinson recently underscored the value of adopting an intellectual and scientific approach to the creation of the Cardano blockchain in an interview with Messari founder Ryan Selkis.

The blockchain’s method of development, according to Input Output Hong Kong [IOHK]’s founder may open the door for the entry of billions of new users into the cryptocurrency market.

“Every step of the way with Cardano, we just basically said we’re going to start from something that makes sense. We’re going to write papers. We’re going to validate those papers in the academic community. There are now over 150 of them that we’ve written as an ecosystem by top professors.”

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.