Charles Hoskinson Criticizes Ethereum’s PoS as Kraken Refuses to Unstake ETH Until Shanghai Upgrade
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Charles Hoskinson, the founder of the IOG and Cardano blockchain, took to Twitter to comment on the message recently spread by the Kraken exchange. The message says that unlocking the Ethereum locked there is only allowed during the next Ethereum update – in Shanghai.
Previously, Hoskinson made a public complaint on Twitter that after the Ethereum merger, Bitcoin maxis would start attacking Cardano, believing that its PoS model has the same problems as Ethereum.
Cardano offers a different way to implement Proof of Stake, ADA holders have reminded other Twitter users in a comment thread.
“Such assets will be locked…”: ETH locked up to Shanghai
Hoskinson posted a screenshot of a Kraken support message saying that deleting Ethers is not available immediately after merging. It says that withdrawal of staked ETH will only be possible when the next ETH upgrade for Ethereum 2.0 – Shanghai – takes place.
The message says that Shanghai is expected to arrive about six months after the Merger is completed.
It also shows that this is not a specific requirement or policy of the Kraken exchange, but rather related to the way the entire Ethereum network works.
If only there was a way to implement proof of stake that didn’t require locking up funds like this… https://t.co/FldEPOfIau
— Charles Hoskinson (@IOHK_Charles) September 15, 2022
No asset locking in Cardano PoS
Charles Hoskinson disagreed that Cardano’s proof-of-stake model works differently than Ethereum’s; some commenters did it instead.
In response to questions from the uninitiated, they tweeted that staking Cardano does not require stakers to transfer ADA from their wallets and therefore ADA can be removed from a stake at any time.
In Cardano it is called delegation. Tokens are delegated to a Stake Pool Operator (SPO). Tokens NEVER leave your wallet and can be staked at any time.
– Jerome Steele (@SiriusB12) September 15, 2022
Unlike Ethereum, Cardano does not use “slicing”.
On September 15th, when Ethereum developers rolled out the Merge update and moved Ethereum from PoW to PoS, Hoskinson responded to a tweet by Bitcoiner and former Twitter CEO Jack Dorsey, who posted an article stating that all PoS platforms use proof of stake at the same time way with many things that harm the interests of users.
The article specifically mentioned a feature called “slashing” used by Ethereum. This feature protects the network from 51% attacks by reducing the financial incentives for punters who attempt malicious behavior. Essentially, they get their stake in Ethereum cut, i.e. reduced.
Cardano has no such feature; however, the article does not mention it. Hoskinson shared his expectation that now Bitcoin maximalists will start attacking Cardano for the flaws of Ethereum, thinking that PoS works on all platforms in the same way.