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Cardano founder calls Ethereum as “Hotel California” of the cryptocurrency industry

On September 15, Cardano blockchain creator, IOG’s CEO via tweet, brought attention to the problem with Ethereum’s implementation of the Proof-of-Stake consensus method, which consumes less energy than Proof-of-Work to sustain a chain. Cardano co-founder, Charles Hoskinson, refers to Ethereum as the Hotel California of the cryptocurrency industry.

Hoskinson’s comments on the Kraken Ethereum update

Ethereum as "Hotel California"
Hoskinson’s comments on the Kraken Ethereum update

Hoskinson reacted to the issue that Kraken does not permit users to withdraw their staked Ethereum tokens in his tweet, stating that their ETH will not be accessible to withdraw until the next scheduled Ethereum update, termed Shanghai, which is expected for around six months after Merge.

The Kraken team expressed that this prohibition arises from the Ethereum network and not from an exchange.

The founder of Cardano has voiced his concern about the problem twice, Cardano founder’s initial tweet on September 16, indicating that there might be an alternative way to implement the Proof-of-Stake protocol

Cardano’s PoS does not need to lock users’ ADA because ADA is staked without really leaving a user’s wallet and can be redeemed at any moment.

Ethereum has now been associated by Hoskinson with the legendary Eagles song “The Hotel California.”

In the song, it is said “We are all just prisoners here of our own device.”

“Last thing I remember, I was Running for the door 

I had to find the passage back 

To the place, I was before 

“Relax, ” said the night man 

“We are programmed to receive

You can check out any time you like

But you can never leave”

Moreover, a Twitter user named @StakeWithPride uploaded screenshots from Discord in the comment thread, claiming that there is no ETA (estimated time of arrival) and that ETH withdrawals are not planned for Shanghai.

The creator of Serv.eth Support, Micah Zoltu, expresses that the information on these screenshots regarding withdrawals opening only after the Shanghai update comes from exchange platforms. Nonetheless, Micah accepts that they consider it crucial at this point to permit investors “to exit in 2023, instead of in 2024.”

Apart from this, Zoltu also claimed that Ethereum stakers do not have to withdraw their ETH right now and can wait a bit longer because they are rich and can manage to acquire costly specialist hardware, as per the previous snapshot that @StakeWithPride have with the Zoltu. As a result, the “needs of users” are given control over shareholder needs.

Hoskinson stated that common people invest in Cardano’s PoS system and that staking on Cardano is not exclusive to the wealthy. He underlined that this is an important element where Ethereum and Cardano vary.

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