Cardano vs. Ethereum: Hoskinson Lauds ADA's Staking Mechansim

Despite belonging to the same industry, the various networks in the crypto market often engage in conflicts. Ethereum [ETH], in particular, has faced criticism and backlash for its transition to the proof-of-stake [PoS] consensus mechanism. While Ethereum’s staking mechanism has been successful, Charles Hoskinson, co-founder of Cardano, took the opportunity to make a snide remark aimed at the second-largest cryptocurrency network.

In a tweet exchange, Charles Hoskinson called out Vitalik Buterin, the founder of Ethereum. This statement came in response to Buterin’s comments about the challenges associated with staking Ether [ETH]. Buterin previously stated that only a small portion of his Ether is staked as it gets complicated. Buterin pointed out that staking Ethereum involves the need to make the associated keys public, which raises concerns about security. To address this, he suggested using multi-signature transactions. However, he admitted that setting them up can still be challenging.

Hoskinson emphasized that all of Cardano’s native token ADA is staked. This statement implied that Cardano’s proof-of-stake protocol is well-designed and functioning effectively. This was done by indirectly highlighting potential flaws in Ethereum’s approach.

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

Ethereum’s deposit contract value hits all new high

Following the implementation of the Shanghai upgrade, which introduced the ability to withdraw staked Ethereum, there has been a notable increase in the number of individuals opting to lock their coins in beacon deposit contracts. This surge in staked Ethereum is evident as the amount has rapidly grown and has set a new record since the update.

The number of Ethereum that has been staked has now surged to 25.8 million ETH, marking a new all-time high ATH. At present, this staked amount is valued at over $48 billion.

Amidst this, Ethereum continued to struggle to hit $2,000. At press time, the second largest crypto asset was trading for $1,889.79 with a 2.66% daily surge.