Cardano founder reveals the reason for not being included in the U.S. government Blockchain initiative: the integration fee for Chainlink is ridiculously high!
Charles Hoskinson, the founder of Cardano, revealed that the reason Cardano was not selected for a U.S. government initiative to publish official economic data on a public Blockchain was not due to technical or regulatory issues, but rather because the Oracle Machine provider Chainlink demanded "ridiculous" high integration fees. He stated that, although negotiations for collaboration with Chainlink are still ongoing, the high costs made participation infeasible. This economic barrier highlights the development dilemma faced by Cardano in the DeFi sector, as its Total Value Locked (TVL) has long lagged behind competitors like Ethereum, restricting its on-chain activity rise.
Chainlink is accused of having integration fees "ridiculously high"
As one of the largest blockchain ecosystems, Cardano's failure to participate in a recent initiative launched by the U.S. government aimed at incorporating macroeconomic data into the blockchain surprised many cryptocurrency participants. However, Cardano founder Charles Hoskinson stated in a recent AMA session on his YouTube channel that the reason boils down to money.
According to Hoskinson, the main reason is that the company is about to finalize a collaboration with Chainlink's Oracle Machine integration, but the cooperation has yet to be finalized due to the absurd fees charged by Chainlink. He did not shy away from using strong language: "They (referring to Chainlink) quoted us an outrageous integration fee. I said, 'Who cares, we'll handle it. We'll find a way to solve it.'" he stated.
Despite feeling frustrated, he softened his critical remarks with a respectful attitude, trying to make amends. He called Chainlink co-founder Sergey Nazarov "very smart," a "very good businessman," and a person who "foresees the future"; in Hoskinson's words, he is "sitting on a golden egg."
Chainlink's Oracle Machine solutions are crucial for connecting smart contracts to real-world data. Therefore, Hoskinson's metaphor also reflects Chainlink's strong position in the Blockchain ecosystem.
Cardano Decentralized Finance rise遭遇阻碍？
Due to the lack of economically efficient Oracle Machine integration, Cardano's decentralized finance landscape has struggled to keep pace with other Blockchain ecosystems. In contrast, the integration of Ethereum with Chainlink has brought a substantial influx of funds into its DeFi ecosystem. According to data from DeFiLlama, the Total Value Locked (TVL) increased by approximately $13.4 billion from August 2 (78.22 billion) to August 31 (91.595 billion).
At the same time, Cardano's Total Value Locked (TVL) fell below 400 million dollars in August, and the number of daily active addresses also dropped significantly. As of the writing of this article, Cardano's TVL is 367.91 million dollars. This has led to a disconnection between Cardano's on-chain activity and the price trend of ADA, which has steadily risen in August along with other cryptocurrency markets.
Despite this, Hoskinson remains optimistic. Negotiations with Chainlink are still ongoing, and he is determined to reach a consensus with Chainlink. He also revealed discussions with the USD1 stablecoin team and hinted at a possible collaboration with Aave, calling the latter part of the partnership. If USD1 (which has already launched on chains like Ethereum) joins Cardano, it is expected to become the largest stablecoin in the ecosystem. Coupled with the oracle access and lending support provided by Chainlink, Cardano is poised to significantly enhance its DeFi foundation.
Interestingly, TapTools stated on platform X, "Friendly reminder: If the staked ADA is counted as TVL, Cardano will rank second in the world. Currently, the staked amount of ADA is 21.86 billion dollars, valued at 18.36 billion dollars. This is higher than Solana, Tron, BSC, and all other blockchains, only second to Ethereum."
As of the writing of this article, Cardano (ADA) is trading at $0.8391, having risen by 0.9% in the past 24 hours.
Conclusion
The high fees of Chainlink are undoubtedly a major obstacle for Cardano to integrate into the broader DeFi ecosystem. Although Hoskinson expressed frustration, he remains hopeful for future collaborations and revealed potential partnerships with USD1 stablecoin and Aave. If these collaborations can be successfully implemented and effectively address the Oracle Machine integration issues, Cardano's DeFi ecosystem is expected to experience significant rise, thus better leveraging its large staking advantage. However, this also reminds us that in the interconnectivity of blockchains, economic barriers can sometimes be more difficult to overcome than technical barriers.
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Cardano founder reveals the reason for not being included in the U.S. government Blockchain initiative: the integration fee for Chainlink is ridiculously high!
Charles Hoskinson, the founder of Cardano, revealed that the reason Cardano was not selected for a U.S. government initiative to publish official economic data on a public Blockchain was not due to technical or regulatory issues, but rather because the Oracle Machine provider Chainlink demanded "ridiculous" high integration fees. He stated that, although negotiations for collaboration with Chainlink are still ongoing, the high costs made participation infeasible. This economic barrier highlights the development dilemma faced by Cardano in the DeFi sector, as its Total Value Locked (TVL) has long lagged behind competitors like Ethereum, restricting its on-chain activity rise.
Chainlink is accused of having integration fees "ridiculously high"
As one of the largest blockchain ecosystems, Cardano's failure to participate in a recent initiative launched by the U.S. government aimed at incorporating macroeconomic data into the blockchain surprised many cryptocurrency participants. However, Cardano founder Charles Hoskinson stated in a recent AMA session on his YouTube channel that the reason boils down to money.
According to Hoskinson, the main reason is that the company is about to finalize a collaboration with Chainlink's Oracle Machine integration, but the cooperation has yet to be finalized due to the absurd fees charged by Chainlink. He did not shy away from using strong language: "They (referring to Chainlink) quoted us an outrageous integration fee. I said, 'Who cares, we'll handle it. We'll find a way to solve it.'" he stated.
Despite feeling frustrated, he softened his critical remarks with a respectful attitude, trying to make amends. He called Chainlink co-founder Sergey Nazarov "very smart," a "very good businessman," and a person who "foresees the future"; in Hoskinson's words, he is "sitting on a golden egg."
Chainlink's Oracle Machine solutions are crucial for connecting smart contracts to real-world data. Therefore, Hoskinson's metaphor also reflects Chainlink's strong position in the Blockchain ecosystem.
Cardano Decentralized Finance rise遭遇阻碍？
Due to the lack of economically efficient Oracle Machine integration, Cardano's decentralized finance landscape has struggled to keep pace with other Blockchain ecosystems. In contrast, the integration of Ethereum with Chainlink has brought a substantial influx of funds into its DeFi ecosystem. According to data from DeFiLlama, the Total Value Locked (TVL) increased by approximately $13.4 billion from August 2 (78.22 billion) to August 31 (91.595 billion).
At the same time, Cardano's Total Value Locked (TVL) fell below 400 million dollars in August, and the number of daily active addresses also dropped significantly. As of the writing of this article, Cardano's TVL is 367.91 million dollars. This has led to a disconnection between Cardano's on-chain activity and the price trend of ADA, which has steadily risen in August along with other cryptocurrency markets.
Despite this, Hoskinson remains optimistic. Negotiations with Chainlink are still ongoing, and he is determined to reach a consensus with Chainlink. He also revealed discussions with the USD1 stablecoin team and hinted at a possible collaboration with Aave, calling the latter part of the partnership. If USD1 (which has already launched on chains like Ethereum) joins Cardano, it is expected to become the largest stablecoin in the ecosystem. Coupled with the oracle access and lending support provided by Chainlink, Cardano is poised to significantly enhance its DeFi foundation.
Interestingly, TapTools stated on platform X, "Friendly reminder: If the staked ADA is counted as TVL, Cardano will rank second in the world. Currently, the staked amount of ADA is 21.86 billion dollars, valued at 18.36 billion dollars. This is higher than Solana, Tron, BSC, and all other blockchains, only second to Ethereum."
As of the writing of this article, Cardano (ADA) is trading at $0.8391, having risen by 0.9% in the past 24 hours.
Conclusion
The high fees of Chainlink are undoubtedly a major obstacle for Cardano to integrate into the broader DeFi ecosystem. Although Hoskinson expressed frustration, he remains hopeful for future collaborations and revealed potential partnerships with USD1 stablecoin and Aave. If these collaborations can be successfully implemented and effectively address the Oracle Machine integration issues, Cardano's DeFi ecosystem is expected to experience significant rise, thus better leveraging its large staking advantage. However, this also reminds us that in the interconnectivity of blockchains, economic barriers can sometimes be more difficult to overcome than technical barriers.