The rivalry between Ethereum’s Vitalik Buterin and Cardano’s Charles Hoskinson has become caustic. Buterin freely admitted to Ethereum’s centralization during a Turkish event, and he suggested reworking the platform’s staking mechanism.
Sarcastic in his response, though, was Charles Hoskinson, a well-known supporter of Cardano, who stated, “No worries, Ethereum 3 will have it all sorted.”
This conversation highlights the continuous struggle for supremacy in the cryptocurrency ecosystem between the two blockchain systems.
Buterin accepted that there were flaws with Ethereum’s staking pool concept and its centralization. In order to improve decentralization, he suggested moving toward the unspent transaction (UTxO) strategy.
This action indicates Ethereum’s dedication to resolving issues with its staking structure and enhancing network decentralization.
Conversely, Hoskinson constantly promotes Cardano’s liquid staking as the gold standard for decentralization.
Cardano’s market value is lower than Ethereum’s, but he isn’t backing down from touting its features and design. His mocking comment regarding Ethereum 3 suggests that he doesn’t think Ethereum can solve basic problems.
Kraken settled a $30 million lawsuit with the SEC for providing staking services without the required registration, which created difficulties for the regulatory environment surrounding crypto staking.
In order to minimize regulatory scrutiny, Ethereum decided to revamp its staking in line with its shift from Proof-of-Work to Proof-of-Stake.
Although Ethereum hasn’t faced the same regulatory proceedings as Kraken, Buterin’s proactive suggestion suggests a proactive strategy to resolve any regulatory concerns in advance.
The competition and changing regulatory environment continue to influence the main blockchain protocols’ tactics.