Tony and Jimmy Saga

Posted on by kopi master

Decentralization: BTC vs ADA

This is an important whiteboard video from Charles that illustrates the path to decentralization (or oops… federation) for both BTC and ADA.

To summarize a 40mins video into a few lines, three factors point in favor of ADA vs BTC:

  • Decentralization does not depend on patented technology (no need for ASICs)
  • Decentralization does not depend on power costs or geography (consume little power)
  • Decentralization does not depend on wealth (as long as you can afford some ADA)
It is crucial for Charles to provide a timely response to Tone and Jimmy’s accusation of Cardano printing free PoS money, for having no security, and for not being decentralized.
 
And to be expected, many Cardano (or PoS) fans are rallying and calling Tone and Jimmy stupid, or worse (or much worse).
 
However, I think that they merely act in a way that is (1) aligned with their BTC interests, and (2) out of fear of both their individual and their chosen tech’s (BTC) impending irrelevance.
 
Once you understand incentives vs outcomes, it all makes sense.