Cardano founder Hoskinson has reacted to recent remarks from Vitalik Buterin, as the Ethereum founder reveals that he only stakes a small portion of his ETH for security reasons.
Cardano’s Charles Hoskinson expresses amazement as Ethereum co-founder Vitalik Buterin reveals that he stakes only a small portion of his ETH holdings due to safety issues with ETH staking protocol.
In a recent Bankless Podcast session, Vitalik Buterin, the lead creator of Ethereum, disclosed that he is not staking all of his ETH holdings but rather a reasonably small portion.
Recall that Ethereum, founded as a proof-of-work (PoW) network in 2015, transitioned to proof-of-stake (PoS) in 2022 to begin supporting the staking of its native token ether for rewards.
Buterin Implies ETH Staking is Unsafe
In stating the significant reasons for his seeming lack of trust in ETH staking, Buterin noted that there are some safety issues with the design of ETH staking, such as the risk of wallet keys exposure.
“If you stake your ETH, the keys that access it have to be public on some system that is unwind,” Buterin remarked.
According to him, integrating the multi-signatures (multisigs) concept in the design of ETH staking would help guarantee a safe staking experience.
However, the popular cryptographer noted that multisigs for staking are complicated and relatively difficult to set up. “For safety, it must be multisig, and multisigs for staking is fairly difficult to set up and complicated in a bunch of ways,” Buterin submitted.
Hoskinson Hails Cardano, Says All His ADA is Staked
These remarks from the Ethereum founder have raised concerns in the crypto community as they suggest that Buterin may lack trust in his own protocol.
Among those who reacted to the development is Charles Hoskinson, the founder of the Cardano blockchain and the CEO of Input Output, who expressed great astonishment.
“I had to listen to this a few times. I’m just at a loss for words,” Hoskinson said, seeking to communicate his astonishment regarding the recent disclosure from Buterin. Recall that Hoskinson was also among the founders of Ethereum.
Hoskinson’s tweet came as a reply to a question from a popular Cardano community account StakeWithPride. The account asked the IOG Chief to disclose how much of his ADA holdings are staked.
Responding to the question, Hoskinson noted that all of his ADA tokens are staked, taking the opportunity to herald the Cardano blockchain. According to him, Cardano is an adequately designed proof-of-stake protocol.
He wrote, “All of our ADA is staked. Guess what? That’s how it’s supposed to be for a properly designed Proof of Stake protocol.”
I had to listen to this a few times. I'm just at a loss for words. All of our Ada is staked. Guess what that's how it's supposed to be for a properly designed Proof of Stake protocol. https://t.co/ye6va1DH06
— Charles Hoskinson (@IOHK_Charles) June 29, 2023
This statement comes shortly after Hoskinson addressed the rising centralization concerns with Cardano and the role of the Cardano Member-Based Organization in ensuring the democratic governance of the platform.
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