Wolf of Allstreets talks Crypto with Cardano/Ada, IOHK's Charles Hoskinson

Charles Hoskinson reveals all! Source: Wolf of All Streets Podcast

| Cardano, a prominent Layer 1 blockchain, has long been recognized for its methodical, research-driven approach to development, prioritizing security and decentralization over raw speed. Founded by Charles Hoskinson, one of Ethereum’s co-founders, Cardano has aimed to address the blockchain trilemma—balancing scalability, security, and decentralization—where many competitors, including Solana, have made trade-offs. Solana, known for its high throughput of up to 65,000 transactions per second (TPS) theoretically and around 3,000 TPS in practice, has gained a reputation as a fast, low-cost blockchain, but critics argue it sacrifices decentralization due to high validator hardware requirements and a history of network outages. The Leios upgrade positions Cardano to challenge Solana’s speed dominance while maintaining its core ethos of full decentralization, sparking significant interest in the crypto community as of early 2025.

The Leios upgrade is an evolution of Cardano’s Ouroboros consensus protocol, which has underpinned the network since its inception in 2017. Ouroboros, a proof-of-stake (PoS) mechanism, has enabled Cardano to operate without a single minute of downtime in nearly seven years—a stark contrast to Solana’s 13 major outages since 2020. However, Cardano’s transaction speed has lagged, with a current capacity below 20 TPS, far behind Solana and even Ethereum’s post-merge improvements. Leios aims to close this gap by introducing a novel approach to transaction processing, decoupling transaction validation from block ordering, allowing parallel processing of transactions across the network.

This parallelization is facilitated by a new block structure, including Input Blocks (IB), Endorsement Blocks (EB), and Ranking Blocks (RB). Input Blocks contain transaction data, Endorsement Blocks validate these transactions via specialized nodes called Input Endorsers, and Ranking Blocks provide a lightweight reference for consensus, reducing the data load on the network. This architecture enables multiple transactions to be processed simultaneously, potentially boosting Cardano’s Layer 1 TPS to 1,500 or more—still below Solana’s peak but a dramatic improvement. When combined with Cardano’s Layer 2 scaling solution, Hydra, which promises up to 1 million TPS per head, Leios could position Cardano as a formidable competitor in the blockchain scalability race.

Cardano’s promise to achieve this speed without compromising decentralization is a key focus. Solana’s speed comes at the cost of high hardware demands, requiring validators to run powerful machines, which has led to a smaller, more centralized validator set—its Nakamoto Coefficient, a measure of decentralization, hovers around 20, meaning 20 validators control a third of the stake. Cardano, with over 3,000 stake pools and a higher Nakamoto Coefficient, prides itself on accessibility for small operators. Leios is designed to preserve this, ensuring that stake pool operators (SPOs) with modest hardware can still participate, avoiding the centralization pitfalls that critics attribute to Solana.

Charles Hoskinson’s vision drives this upgrade, as he has been vocal about Leios since its conceptual introduction in 2022. In a September 2024 X post, Hoskinson stated, “Leios makes us faster than Solana without losing decentralization,” a sentiment echoed in subsequent interviews and updates. By April 2025, with prototyping well underway and large-scale implementation on the horizon, a Q4 2025 rollout aligns with earlier projections, though delays are possible given Cardano’s rigorous testing process.

For developers, the upgrade promises a more robust platform for decentralized applications (dApps), potentially rivaling Solana’s thriving ecosystem of DeFi and NFT projects. Cardano’s current total value locked (TVL) of around $187 million pales beside Solana’s $9.52 billion as of January 2025, but Leios could attract more activity by reducing congestion and improving user experience. For investors, the upgrade might signal a bullish case for ADA, Cardano’s native token, though market realities temper expectations—ADA traded at $0.327 in September 2024, down from its highs, and ambitious price targets like $15 remain speculative.

Cardano and Solana contrast sharply. Solana’s proof-of-history (PoH) and proof-of-stake hybrid allows rapid transaction sequencing, but its outages—stemming from network overloads or validator failures—highlight resilience trade-offs. Cardano’s Leios, paired with Ouroboros Peras (another upgrade reducing time to finality), aims for speed and stability, leveraging its extended unspent transaction output (EUTXO) model for secure, predictable transaction handling. This could appeal to enterprises and Bitcoin DeFi projects, a focus Hoskinson emphasized in early 2025, positioning Cardano as a bridge between major cryptocurrencies like Bitcoin and XRP.

Community and developer reactions from X posts and interviews show enthusiasm—users like @adeel28027 on April 2, 2025, praise Leios’ potential to make Cardano a leading Layer 1 blockchain. However, skepticism persists; some criticize Cardano’s slow pace, noting Leios’ long gestation since 2022. While prototyping is advanced, real-world performance remains unproven until deployment.

In the broader blockchain landscape of April 2025, with Ethereum’s danksharding upgrades enhancing its scalability and Solana’s ecosystem maturing despite past hiccups, Cardano faces stiff competition. Leios, alongside Hydra and potential integrations like Midnight (a privacy protocol), could differentiate Cardano by offering a unique blend of speed, decentralization, and interoperability. The question remains: Can Cardano deliver on its promise and redefine the Layer 1 hierarchy, or will it remain a slow-and-steady contender in a fast-moving industry?

In summary, the Leios upgrade marks a pivotal moment for Cardano, promising Solana-level speed through parallel processing while upholding decentralization via its inclusive design. It details technical innovations, a potential timeline, and implications for developers, investors, and the crypto ecosystem, offering a balanced view of Cardano’s ambitious bid to challenge its rivals in 2025.