Despite Merge, Cardano founder Charles Hoskinson points out a major problem with the Ethereum Blockchain. The IOG founder also says that unlike Ethereum stakers, Cardano stakers do not need to be rich.
Cardano founder: Ethereum, the Hotel California of crypto
IOG founder Charles Hoskinson shared his views on Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Compared to PoW, the PoS network requires less energy to support a Blockchain. In a recent tweet, Hoskinson said that despite being one of the co-founders of the popular network, he sees Ethereum as the Hotel California of crypto.
Hoskinson made these comments after it emerged that the Kraken exchange was preventing users from withdrawing staked Ethereum tokens until the Shanghai upgrade. Shanghai upgrade is Ethereum’s next planned upgrade. Also, it won’t be until at least six months after Merge. Kraken’s customer support says that the Ethereum Blockchain, not them, is responsible for this restriction.
The Cardano founder has commented on Ethereum’s recent PoS transition for the second time in a short time. Hoskinson said in his previous comment that there is a better way to implement the PoS protocol. He then added that users’ ADAs are not locked due to Cardano PoS because staking occurs without users leaving their wallets and they can withdraw their funds at any time. Hoskinson’s simile of Hotel California is a reference to the Eagles’ classic song “The Hotel California.”
Ethereum is becoming the Hotel California of Crypto https://t.co/oRUw4kxvfS
— Charles Hoskinson (@IOHK_Charles) September 16, 2022
Part of the song’s lyrics say, “We’re all just prisoners of ourselves.” Surprisingly, Twitter user StakeWithPride commented in his tweet thread that there is no estimated timeline for ETH withdrawals. Also, Ethereum has not officially stated that withdrawals are planned for Shanghai.
He added some screenshots from his discord channel to prove his point. Micah Zoitu, founder of Serveth Support, said that it was Exchanges that started the rumors about ETH withdrawal after the Shanghai upgrade. Still, Zoitu said it is crucial at this stage that Ethereum allows investors to ‘withdraw in 2023, not 2024’.
“ADA stakers do not have to be rich like ETH stakers”
In a separate screenshot, StakeWithPride shared his discussion with Zoitu. Zoitu explained that Ethereum stakers can afford to withdraw their ETH immediately, but wait until later. According to Zoitu, Ethereum stakers are wealthy and have the resources to purchase costly proprietary hardware.
So the priority here is the needs of the users, not the needs of the stakers. Hoskinson also commented on the two’s quarrel. This time, he said that Cardano stakers are ordinary people. Cardano noted that they do not need to be rich to stake. Hoskinson reiterated that this is a crucial difference between Cardano and Ethereum.
Stakers on Cardano are everyday people who don't need to be wealthy. I guess that's the philosophical difference https://t.co/ScJ6hZKlMi
— Charles Hoskinson (@IOHK_Charles) September 15, 2022
As you follow on Kriptokoin.com, Hoskinson is no stranger to these discussions. Earlier in the week, he also tweeted that Ethereum’s PoS switch marks the beginning of an era where everyone will assume that all PoS networks operate similarly to Ethereum’s PoS. He added that Bitcoin maxi will attack Cardano and label all Ethereum issues as Cardano’s.
However, Dogecoin co-founder Billy Markus assured the Cardano founder that he should not worry about his tweet as many in the crypto space cannot distinguish between PoS and PoW. He claimed that they were just pretending to understand.
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