Cardano founder Charles Hoskinson tweeted on Feb. 9 that staking on Ethereum is problematic.
According to Hoskinson, staking on ethereum looks “a lot like a regulated product” because it involves “temporarily giving your assets to someone else in exchange for … a return.”grandfather say Added:
“Locking tokens incentivizes centralization, and poor protocol design will damage the industry.”
Hoskinson echoed Coinbase CEO Brian Armstrong’s statement regarding the U.S. Securities and Exchange Commission’s (SEC) plan to ban retail staking.
Hoskinson hinted that Cardano’s approach to staking “makes sense for a sustainable PoS protocol that leverages control over the many rather than the few and creates a highly decentralized environment.”
The U.S. Securities and Exchange Commission has stepped up its regulatory scrutiny of the crypto industry, filing multiple lawsuits against crypto companies. SEC Chairman Gary Gensler once said that exchanges provide staking services similar to lending, even if the call changes.
The comment drew some harsh responses from the crypto community over the committee’s understanding. Hoskinson said:
“All PoS protocols are at risk of being compromised due to a fundamental misunderstanding of the reality of staking operations and design.”
Meanwhile, this isn’t the first time Hoskinson has criticized Ethereum’s staking. The Cardano founder has previously described the blockchain network as a “California crypto hotel.”
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Two Important Updates for Ethereum Enter 2023
The Shanghai update of the Ethereum network is one of the most anticipated events in the crypto market. It promises to bring more liquidity to top altcoins by unlocking ETH in the beacon chain.
The expected release date is March 2023, marking the end of the merger era. While there is some concern in the crypto community about potential selling pressure from the update, it is important to note that ETH issuance will happen gradually through queues, potentially reducing the impact of the update on the market.
The launch of Beacon Chain allows stakeholders to validate blocks and secure the ETH network while maintaining predictability during The Merge, the biggest update in the crypto market in 2022. In addition to the Q1 hard fork, the network will undergo two major upgrades later in 2023. These updates will further boost the status of the top altcoin by market cap.
Ethereum founder Vitalik Buterin said that the main focus of the upcoming update is to address the scalability challenges facing the smart contract platform.
The update will do this by defragmenting the ETH database, allowing the network to scale while remaining decentralized. To achieve this, the ETH network’s information will be split horizontally, allowing it to spread the load and reduce storage costs and hardware requirements.
It is important to note that this update will not result in an immediately scalable Ethereum blockchain. Instead, EIP 4844 will create a separate blockchain for Layer 2, enabling scaling solutions like Arbitrum and Optimism to lower transaction fees and really compete with other ETH competitors when transfer fees are lower.
The upcoming EOF (EVM Object Format) update will bring improvements to Ethereum’s code execution environment, making the cryptocurrency platform more efficient and simplifying the smart contract creation process. EOF will also facilitate updates to the EVM and create a system to track resource usage by new contracts.
These upgrades bring ethereum closer to its goal of becoming a decentralized mainframe that powers decentralized applications with a user-friendly interface, low fees and a secure network for everyday transactions. . It is important to note that crypto world updates with suggested improvements are subject to change at any time.
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According to AZCoin News