Bitcoin, Ethereum, Cardano... Soon Obsolete Because Of The GAFAM?

The founder of Cardano (ADA), Charles Hoskinson, recently expressed his concerns about the future of Layer-1 networks in light of the emergence of the GAFAM in the blockchain universe. According to him, companies like Meta, Google, Apple, Microsoft, and Amazon could soon dominate the crypto space, relegating current blockchains to the background. This would likely mark the end of the crypto industry as we know it today.

Will the GAFAM dominate crypto? Charles Hoskinson warns

During a livestream on X, Charles Hoskinson stated that the real competition for blockchains like Cardano, Ethereum, Solana, or Bitcoin does not come from other cryptos, but from large tech companies like Microsoft, Apple, Google, and Amazon.

According to him, once regulations are in place, these companies will be able to easily integrate blockchain solutions into their existing services. He notably imagines a scenario where Android and iOS would default to incorporating a crypto wallet, making decentralized solutions much less appealing to users.

A considerable competitive advantage

In addition to a sophisticated infrastructure, large tech companies already have a massive user base, with some reaching up to 3 billion users! With their payment services like Apple Pay and Google Pay, they could therefore quickly launch their own stablecoins or partner with established players like Circle.

Hoskinson emphasizes that these companies already control the operating systems of the majority of smartphones in the world. This thus gives them enormous power to impose their own blockchain solutions, to the detriment of current decentralized crypto networks.

A disaster for the current crypto industry?

If tech giants like Apple, Google, or Microsoft were to actually launch their own blockchain or Layer 1 network, the current crypto industry could undergo a major upheaval. With their immense user base and control over operating systems, these companies would quickly impose their solutions, rendering many decentralized projects obsolete.

Bitcoin, Ethereum, Solana, and even Cardano could see their adoption slow down or even decline in the face of centralized alternatives that are more accessible and integrated into existing ecosystems. This would go against the founding principles of crypto, jeopardizing the decentralization and financial sovereignty of users.

The arrival of tech giants in the blockchain universe could therefore mark a decisive turning point for the crypto industry. If these companies succeed in imposing their own centralized networks, they risk overshadowing existing decentralized projects, thereby threatening innovation, financial sovereignty, and the fundamental spirit of cryptocurrency.