$ADA Stake Pool Operator: Why Cardano Has a Better PoS Design Than Ethereum

On Friday (September 2), Bloom’s stake pool operator explained why, despite “game theory flaws”, “Cardano’s design proof of stake is objectively better than Ethereum’s POS design.”

Here’s how Kraken Intelligence, the research arm of cryptocurrency exchange Kraken, described Cardano’s staking in a 42-page research report (titled “Cardano: A new generation in smart contract platform design), published at the beginning of February 2022:

On Cardano, validators earn rewards in the form of ADAs for running nodes that operate and protect the network. To invite more egalitarian participation, Cardano offers stake delegation, where a stakeholder can delegate their ADA to another validator if they don’t have the technical knowledge or don’t want to manage a node on their own.

In return, the delegator receives a share of the total staking rewards that go to the validator proportional to his ownership of the total ADA bet by the validator, minus the operating fees. For this reason, validators are referred to as stake pools on Cardano as they collect the stakes of many delegators in a single validator. The person / organization managing the validator is called SPO (Stake Pool Operator).

Earlier today, the operator of the Bloom stock pool brought to Twitter to explain why Cardano has a better PoS design than Ethereum:

On Cardano users can bet from their wallet to a pool. On ETH you have to send your tokens to a contract that can be hacked. The only way to keep your tokens on $ ETH (locked) is to have 32 $ ETH and the technical knowledge to set up a node. Your tokens will not be unlocked until the Shahai update. Cardano users can collect their prizes or wager at any time.

On Ethereum there is a risk of slash. This is when the validator node you bet on is misbehaving, it can cut up to a full $ 32 ETH. No cuts on Cardano. Furthermore, there is no additional risk in staking in a pool on Cardano. There is risk however in staking $ ADA or other tokens on exchanges, whenever you put your $ ADA into exchanges, smart contracts (nft-marketplace, yield farming, staking contract) you are exposed to greater risk. Smart contracts and exchanges can be hacked, your @trezor can’t. Cardano has made many big decisions with its proof of stake mechanism, however you need real world data to improve it … “

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