- Cardano’s Charles Hoskinson Says Their Proof-of-Stake is More Decentralized Than Bitcoin’s Proof-of-Work
- The Cardano Proof-of-Stake Network Will Be Ready to Launch After July 29th
Cardano News Today – Yesterday, the founder of Cardano Charles Hoskinson talked about their long-awaited proof-of-stake protocol and how it is better than the dominant protocol in the cryptocurrency industry, proof-of-work. Speaking in a whiteboard video, Hoskinson launched an attack on one of Bitcoin’s top maximalists, Tone Vays, and Jimmy Song. As he talked about decentralization, he compared the upcoming PoS network to Bitcoin’s PoW network. He picked out the problems with the PoW network which don’t exist in the PoS network.
Cardano News Today – Understanding the PoS Network and How it Outshines PoW
Hoskinson listed several disadvantages of the Bitcoin PoW network. For starters, Bitcoin mining can only be done using the ASICs platform. ASICs manufacturers and Bitcoin miners have too much influence on the distribution of Bitcoin. The mining process for Bitcoin alone requires enough electricity to run a small country. This makes it a less environmentally friendly option than Cardano ADA and let’s not talk about the cost. This is why Bitcoin mining farms are only created in countries with low electricity costs.
Hoskinson said that the Bitcoin network favors large players more than small scale retail players. In some countries, Bitcoin mining companies with political influence get cheap electricity and drive small scale miners out of the market. The Cardano ecosystem is all-inclusive. With the PoS protocol, everyone has equal rights on the network. It is 100% more decentralized than Bitcoin according to Charles Hoskinson. In his words;
“So you have guys like Jimmy [Song] and Tone [Vays] that say Bitcoin is so decentralized. Bitcoin is the best thing in the whole wide world, mining is the only way and the truth. ‘By the way, can you participate. Bitcoin is so decentralized’. And you say well, the people who maintain the system they live outside the system, they are consuming a custom resource that’s patented in private, it benefits tremendously from the price of electricity and they got to have a lot of money to be able to play and participate. That doesn’t sound to me like a decentralized system. And over time you get increasingly more federated.”
Hoskinson said that the Cardano PoS network isn’t just more decentralized than Bitcoin, it is also more secure. The decentralization of the Cardano network is one of the key things that will make it more secure than Bitcoin. It’s not a surprise that the Cardano Shelley update has led to an extreme surge in the price of the token. Since the beginning of the year, Cardano ADA has surged by more than 270% against the USD.