Stake pool operator says Cardano staking model is better over Ethereum

A Cardano pool operator explained why the staking model of the Cardano blockchain is much better than Ethereum, in terms of the degree of risk. 

Cardano is a popular Proof-of-stake consensus model-based blockchain network, powered by the IOHK developer team. Charles Hoskinson is the founder of Cardano blockchain and he is one of the founders of the Ethereum project. Hoskinson launched Cardano as a rival of the Ethereum blockchain. Now Ethereum blockchain is moving toward the Proof-of-stake model to remain active in the crypto industry as a leading choice among retail crypto investors.

On 2 September, Big Pey, a Cardano stake pool operator, talked about the Cardano POS staking model and appreciated it as a better model than Ethereum’s Pos staking model. 

Pey noted that Cardano staking design allows ADA holders to stake directly from the wallet, while in Ethereum there is a requirement to transfer in a smart contract which is risky.

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“On #Cardano users can stake from their wallet to a pool. On #ETH you have to send your tokens to a contract that can be hacked.”

Further Cardano pool operator explained that ADA stakers can withdraw their reward & stake funds anytime but in Ethereum, we have to wait for the Shahai upgrade. 

Pey pointed out that Ethereum Staking bears the risk of losing the whole 32 ETH, in case of Validator nodes misbehave. 

3/On #Ethereum there is a risk of slashing. This is when the validator node your staked to misbehaves, it can slash up to the full 32 $ETH.

There is no slashing on #Cardano. There is also no added risk in staking to a pool on #Cardano.

— big pey (@bigpeyYT) September 2, 2022

Cardano pool operators also pointed out that staking of ADA via direct trezor wallet is fully safe and there are no risk possibilities, however, there are risks associated with the staking of ADA on an exchange or in yielding smart contract protocol but we can choose the safe method. 

According to Pey, the Cardano stake pool operator can easily increase the reward for delegates and it helps to stop the creation of many staking pools. 

Perhaps, the Cardano pool operator appreciated the design of the Stake system of Cardano but at the same time pointed out the problem with “Game Theory”, which is benefiting the ADA whales. 

10/These extra rewards paid to whales could be paid to everyone, or the game theory can change to provide incentive to limit multi-pools.

The pledge parameter clearly doesn't limit multi-pools. Reach in the community, or a speculating token is the name of the game, pledge isn't

— big pey (@bigpeyYT) September 2, 2022

Read also: FBI warns crypto investors about Defi vulnerabilities & attacks

Stake pool operator says Cardano staking model is better over Ethereum

 

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