Charles Hoskinson, founder of IOHK and Cardano, said recent bridge attacks and security vulnerabilities show that the cryptocurrency industry needs to mature. He argued that addressing security problems by focusing only on speed is the wrong approach, and said zero-knowledge (ZK) technologies and decentralized insurance systems should play a larger role.

Discussing a recent hack involving a third-party bridge used on the Binance-Cardano route, Hoskinson said traditional software security models are no longer sufficient against AI-powered cyberattacks. Bridges are used to move assets or messages between separate blockchains, which makes their security assumptions especially important when users rely on third-party infrastructure.

According to Hoskinson, the industry should move away from dependence on people or multi-signature, or multisig, structures and toward mathematics-based ZK systems, citing the Midnight project as an example. ZK proofs allow one party to verify that a statement is true without revealing the underlying information, a feature often discussed in blockchain security and privacy design. He also said that for the sector to reach standards associated with traditional finance, optional insurance pools based on real-world assets, or RWAs, should be established to compensate users for losses.

Hoskinson also said the Cardano ecosystem has successfully completed its v11 upgrade. He described the update as the first major hard fork implemented entirely through on-chain community voting. The upgrade adds Groth16 ZK proof-of-service verification infrastructure to the system.

Cardano’s next major upgrade, Leios, is intended to increase the network’s transaction speed by approximately 60 times. Hoskinson said Cardano has also completed governance mechanisms comparable to legislative and judicial functions, and that a decentralized “executive authority” will be created to oversee marketing, commercial adoption and growth strategies. The comments place Cardano’s technical roadmap alongside its governance roadmap, with security, throughput and institutional-style accountability presented as linked priorities.

Hoskinson sharply criticized Ethereum’s governance and financing model while highlighting Cardano’s treasury system. He said Cardano’s development is supported by its on-chain treasury, and argued that Ethereum’s lack of decentralized governance has allowed large corporations and oligarchic structures to gain control.

He also described Layer-2, or L2, solutions in the Ethereum ecosystem as “parasitic” and said they damage the main chain. By contrast, Hoskinson said Cardano uses a “partnered” L2 model that provides ADA holders with multiple token returns.