Cardano (ADA) and Ethereum (ETH) are two of the most prominent blockchain networks in the world, and they have often been compared to each other. While Ethereum is known for being the second-largest cryptocurrency by market capitalization.
Cardano has been gaining attention for its unique approach to staking. In a recent video, Charles Hoskinson, the founder of Cardano, highlighted the advantages of his platform over Ethereum in terms of staking.
Staking is a process that allows users to earn rewards by holding a certain amount of cryptocurrency in their wallets and participating in the network’s consensus mechanism. Cardano and Ethereum are both proof-of-stake (PoS) networks, which means that they use staking as a way to secure the blockchain and validate transactions.
Hoskinson noted that Cardano has a significant advantage over Ethereum when it comes to the number of unique staking participants.
According to his chart, Cardano has over 1.2 million unique staking wallets, while Ethereum has only 88,400. This is a significant difference that could potentially impact the security and decentralization of the networks.
While Hoskinson’s figures are not entirely accurate, the Staking Rewards portal confirms that Cardano’s staking ratio is 68.11%, while Ethereum‘s is 15.6%. This means that the number of outstanding ADA delegated to staking is almost 4.4 times higher than for ETH.
However, because of the price difference between Cardano and Ethereum tokens, the latter has a market staking capitalization 3.5 times larger at $34.29 billion.
Ethereum’s larger market capitalization
Despite Ethereum’s larger market capitalization, Hoskinson believes that Cardano’s approach to staking is superior. He argues that Cardano’s unique approach to staking allows for a more decentralized and secure network. Unlike Ethereum, which uses a delegated staking model, Cardano uses a more decentralized approach that allows anyone to participate in the staking process.
Cardano’s approach to staking
Furthermore, Hoskinson believes that Cardano’s approach to staking is more sustainable in the long run. He argues that Ethereum’s high staking rewards could lead to inflation and ultimately devalue the network’s tokens. In contrast, Cardano has a lower staking reward of 3.24%, which Hoskinson believes is more sustainable and less likely to cause inflation.
In conclusion, Cardano and Ethereum are two of the most prominent blockchain networks in the world, and they have often been compared to each other.
Cardano has been gaining attention for its unique approach to staking. According to Charles Hoskinson, Cardano has a significant advantage over Ethereum in terms of the number of unique staking participants, which could potentially impact the security and decentralization of the networks. Despite Ethereum’s larger market capitalization.