According to stake rewards CardanoIt has a staking market cap of $9.22 billion. This has helped make it the second largest proof-of-stake (POS) network after Ethereum. On the other hand, Ethereum continues to stay ahead with a valuation of $26.95 billion.
Cardano has a higher stake of 71.86%, while Ethereum has a 14.31%. This reveals a very important competition for rival networks.
According to pools.pm, 34,308,238,349 ADA has been staked in 3,182 pools. While this may seem like a huge number, Cardano uses a unique staking mechanism that sets it apart from other POS blockchains.
to ADA Whale according to“staking is crypto’s largest DeFi application. Liquid is unattended and risk-free.”
Cardano staking is crypto’s biggest DeFi app. Liquid, non-custodial, risk free. In light of today’s news, we should make a push for mass adoption. We don’t need middlemen taking a cut. Get some ADA, download a wallet, pick a pool, click DELEGATE and be part of the revolution
— ADA whale (@cardano_whale) February 10, 2023
NEWS CONTINUES BELOW
Cardano Staking Mechanism
The Cardano blockchain uses a game theory-based staking mechanism instead of deduction. The results of this design choice can be summarized as follows. First, staking on the network is liquid and does not lock a user’s ADA for any vesting period.
Second, the network’s ADA delegation does not give ownership of them to the stake pool operator. Custody of the ADA cryptocurrency transferred to the Cardano share pool is always under the control of the owner’s private key.
As reported by Koinfinans.com, Charles Hoskinson commented on the Ethereum staking mechanism following Coinbase CEO Brian Armstrong’s tweet that the SEC plans to ban retail access to staking.
Ethereum staking is problematic. Temporarily giving away your assets to someone else and making sure they get a return is a lot like regulated products. Cuts and bonds aren’t that good. On the other hand, non-custodial liquid staking is similar to the mining pools we’ve been using for 13 years.