Cardano Founder Reveals How Meta, Google, & Apple Can Replace L1 Networks

Cardano founder Charles Hoskinson has explained how the top tech companies Meta, Google, Apple, Microsoft, and Amazon could replace Layer-1 networks. According to him, these companies could easily establish their blockchain infrastructure once they achieve regulatory clarity.

Cardano Founder Reveals How Tech Companies Can Replace L1s

While speaking on an X space, Cardano founder Charles Hoskinson explained that tech companies like Meta, Google, Apple, Microsoft, and Amazon could become competitors to top Layer-1 projects once the stablecoin bill passes. Hoskinson suggested that these tech companies could move to establish their blockchain infrastructure once there is regulatory clarity in the country.

He gave an example of these companies issuing their stablecoins or partnering with a company like Circle to achieve this. Hoskinson also highlighted Apple’s ‘Apple Pay’ and Google’s ‘Google Pay’ to show how these companies are in a good position to compete with these layer-1 networks.

The Cardano founder also noted that these companies are in a good position to overtake these networks since they already have billions of users and control the operating systems that run on phones. As such, he believes this would be the next wave of competition the crypto space will face.

Hoskinson added that he envisages these companies could go as far as creating their Layer-1 networks. He gave an instance of how Meta already tried to venture into the crypto space in the past but failed due to a lack of clear regulations. As such, there is the possibility that they could make such a move again once Congress passes pending crypto bills.

These Companies Won’t Pass Up The Opportunity

The Cardano founder noted that, based on his sources, the US Congress could pass the stablecoin bill in the next 100 days. He believes that companies like Meta, Google, Apple, Microsoft, and Apple will not pass up the opportunity to expand their operations into the crypto market when the bill passes.

He remarked that there is no way that layer-1 networks could compete with these companies since they have a larger network of users and the necessary licenses to expand their business into the crypto space. Hoskinson also highlighted the fact that these companies could easily block users’ access to these networks in a bid to win them over.

The Cardano founder said believes this is very possible since these companies, with their infrastructure, are already a gateway to accessing these Layer-1 networks. As part of the unfair practices that these companies could adopt, Hoskinson also raised the possibility of them deciding to stop running nodes for these networks, which could alter the operations of these Layer-1s.

Hoskinson also highlighted how these tech companies have the edge over L1s with their confidential computing. On the other hand, these blockchains operate within second-generation trust-execution environments which are less reliable.

Hoskinson’s bold statements come just days after he hinted at a potential partnership with Microsoft. This has sparked a bullish outlook for the ADA price, with projections that the crypto could rally to its current all-time high (ATH) of $3.10.