The Web3 Challenge: Cooperation vs. Competition

Charles Hoskinson, the visionary behind Cardano, recently addressed a critical juncture for the cryptocurrency and decentralized finance (DeFi) space. Speaking at the 2025 Paris Blockchain Week, Hoskinson emphasized the urgent need for a collaborative ecosystem to effectively compete with the impending entry of centralized tech giants into the Web3 arena.

His core argument centers on the limitations of the current “zero-sum” dynamic within the crypto world,where the success of one project often comes at the expense of others. This fragmented approach, he argues, is unsustainable in the face of potential competition from trillion-dollar corporations like Apple, Google, and Microsoft.

breaking the Cycle: Moving Beyond “Torque Nomics”

Hoskinson critiqued what he termed the opposed “torque nomics” and market structures prevalent in the cryptocurrency landscape. He argued that the prevailing model, where gains are often derived from the exploitation of other tokens, hinders overall industry growth. This “circular economy,” as it’s often called, needs a fundamental shift.

The problem we have done in the field of cryptocurrency is that the torque nomics and the market structure are essentially hostile. It’s Zero-Sum. Instead of choosing a fight, what to do is to find torque nomics and market structures that allow cooperative balance.

Charles Hoskinson, Paris Blockchain Week 2025

Rather, Hoskinson advocates for the development of cooperative torque nomics and market structures that foster mutual growth and benefit. This collaborative approach is essential to building a robust and sustainable Web3 ecosystem.

The Looming Threat of Big Tech

Hoskinson’s call to action is underscored by the anticipated regulatory clarity in the United States, notably concerning stablecoins. The impending passage of the US stablecoin bill, possibly within the next two months, and the subsequent genius Act, which establishes guidelines for stablecoins and mandates AML compliance, are expected to pave the way for large-scale tech companies to enter the crypto market.

Consider the potential impact: Apple, with its integrated wallets on iPhones, could seamlessly incorporate cryptocurrency functionalities, instantly reaching billions of users. This poses a important challenge to existing crypto projects that lack the scale and resources to compete effectively.

If these obstacles are gone, large companies like Facebook, Microsoft, Amazon, Google, and Apple will enter the cryptocurrency market, and they will find out that they own their platforms. They have 3 billion users.

Cardano’s Solution: The “Minotaur” Protocol

To address these challenges, Cardano is actively developing a multi-resource agreement protocol called “Minotaur.” This innovative protocol aims to align incentives across different blockchain networks by combining multiple consensus mechanisms and enabling the simultaneous payment of integrated block rewards.

The goal is to create a system where participants are financially incentivized to maintain the network,irrespective of the specific currency they prefer. This fosters a more inclusive and cooperative environment, attracting a wider range of participants and strengthening the overall ecosystem.

As of today, the defi market cap stands at approximately $80 billion, showcasing the potential for growth and innovation. Though,realizing this potential requires a fundamental shift towards collaboration and a willingness to build infrastructure that can be leveraged by both established crypto projects and incoming tech giants.

Looking Ahead: A Call for Unity

Hoskinson’s message is clear: the cryptocurrency industry must embrace cooperation and develop innovative solutions to compete effectively in the evolving Web3 landscape. The arrival of big tech is not a threat to be feared, but rather a catalyst for change that demands a unified and collaborative response.