Charles Hoskinson Says Ethereum Becomes Hotel California of Crypto
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- “Ethereum is becoming the hotel California of crypto”
- “Ethereum stakers are rich, Cardano doesn’t have to be”
The creator of IOG, the company that built Cardano’s blockchain, has taken to Twitter to raise the question of how Ethereum has implemented the Proof-of-Stake consensus protocol, which does not require as much energy to support the chain as Proof-of-Work does.
Charles Hoskinson has referred to Ethereum, which he once helped found, in the crypto space Hotel California.
“Ethereum is becoming the hotel California of crypto”
In his tweet, Hoskinson has commented on the fact that Kraken does not allow users to withdraw staked Ethereum tokens, saying that their ETH will not be available until the next planned Ethereum update Shanghai, which is scheduled to take place in about half a year from Connect.
Kraken support stated that this restriction does not come from the exchange but from the Ethereum blockchain.
This is the second time Cardano’s founder has commented on this, his first tweet on Friday hinting that there is another way to implement the Proof-of-Stake protocol. Cardano’ PoS does not require locking users’ ADA, as they are staked without leaving the user’s wallet and can be withdrawn at any time.
Now, Hoskinson has compared Ethereum 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
“We are all just prisoners of our own machine”the song says.
“The last thing I remember I was
Run to the door
I had to find a way back
To a place where I used to be
“Relax,” said the night man
“We are programmed to receive
You can check whenever you want
But you can never leave”
However, in a comment thread, Twitter user @StakeWithPride shared screenshots from Discord saying that ETH withdrawals do not have an ETA (Estimated Time of Arrival) and are not scheduled for Shanghai.
In these screenshots, Serv.eth Support founder Micah Zoltu says that information about withdrawals that will only open after the Shanghai update comes from the exchanges. However, he admits they believe it is so important at this stage to allow investors to exit in 2023 rather than 2024.
“Ethereum stakers are rich, Cardano doesn’t have to be”
Earlier, @StakeWithPride shared another screenshot of a conversation with Zoltu, where the latter explained that since Ethereum stakers are wealthy and can afford expensive specialized equipment, they don’t need to withdraw ETH right away, but can wait until later. Thus, the “needs of the users” are prioritized over the needs of the bettors.
Hoskinson said that the stakers of Cardano’s PoS protocol are ordinary people who do not need to be wealthy to participate in Cardano’s stake. He emphasized that therein lies an important difference between Ethereum and Cardano.
Cardano’s stakers are everyday people who don’t have to be wealthy. I guess it’s the philosophical difference https://t.co/ScJ6hZKlMi
— Charles Hoskinson (@IOHK_Charles) September 15, 2022