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Charles Hoskinson explained what the collapse of Terra was about

Cardano founder Charles Hoskinson said that the recent collapse of Terra confirmed the ineffectiveness of an explosive growth strategy where the system expands uncontrollably and collapses when it peaks.

Charles Hoskinson told CoinDesk that blockchain-based ecosystems should expand slowly, taking a long view that is measured in years and decades, not weeks and months. He cited himself and his company IOG (formerly IOHK) as an example, saying that his team would always prefer sustainability and survival to explosive development.

He also acknowledged that Cardano’s development process is “a little slower” when compared to other projects.

The Cardano network could not execute smart contracts until last year, four years after launch. This left the ecosystem far behind other similar blockchains. Since the Alonzo hardfork, the network has seen notable growth in terms of new features and updates.

Hoskinson noted that one of the main reasons for Terra’s collapse was the environment in which the network evolved, where financial incentives and market settings are structured in such a way that speed is more important than quality. Those who take the slow path will ultimately emerge victorious, Hoskinson believes.

The head of IOS added that the company is focused on doing only regulated business and will continue to engage with organizations such as the DCC, the Blockchain Association and others. Earlier, Hoskinson said that digital currencies would be a lifesaver for the world economy, which has long been stagnant.

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