Charles Hoskinson refutes that all proof-of-stake networks are the same - Robotics Online
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Charles Hoskinson refutes that all proof-of-stake networks are the same

23 Sep 2022

The Ethereum Merge happened successfully on September 15. However, Bitcoin maximalists, including Jack Dorsey, believe that PoS is bad news for most of the cryptocurrency market in terms of regulations. Dorsey’s remarks did not bode well with the founder of Cardano, Charles Hoskinson.

Charles Hoskinson attacks Jack Dorsey over PoS remarks

In a tweet, Hoskinson said that this was now an era where everyone would assume that all PoS networks function like the Ethereum PoS network. He added that the Bitcoin maximalists would now go after Cardano and accuse it of all the problems facing Ethereum.

Hoskinson praised the Ethereum Merge, saying it was one of the hardest things ever done in the cryptocurrency sector. He also congratulated the Ethereum community for completing the transition to PoS successfully.

However, he also said that the transition of Ethereum to PoS would result in the maximalists attacking the Cardano network. Hoskinson’s latest remarks come on the back of Dorsey citing a blog post published by Scott Sullivan, another Bitcoin maximalist.

In the blog post, Sullivan says that Bitcoiners did not care about what was happening in “shitcoins-land.” Sullivan also attacked PoS networks saying that PoW networks were superior to PoS. According to Sullivan, PoW offered better decentralization, security, and incentives and was also permissionless.

The Bitcoin maximalist also believes that if there was any narrative war between the two largest cryptocurrencies, the Bitcoin community needed to be prepared to attack back in this scenario.

In the write-up, Sullivan says that the upgrade was worth paying attention to. After the Ethereum network was done cleansing itself from the “wasteful externalities” of the PoW consensus, the narrative war would be huge. Therefore, Bitcoiners needed to “be ready to punch back.”

The Ethereum Merge has been hailed as one of the most important events in crypto. The transition has boosted the competitiveness of the Ethereum network against its rivals, such as Cardano. The transition to PoS has made the Ethereum network more energy-efficient, with the move estimated to lower the network’s energy demands by 99.9%.

However, there are notable differences between Ethereum and Cardano and the other PoS networks. Ethereum is using a slashing method to punish bad actors. Therefore, when a validator does not abide by the rules, a part of their 32 ETH stake will be slashed. If the validator suffers numerous slashes, it will be ejected from the Ethereum network.

However, the Cardano blockchain uses a different strategy. The network has reward-sharing where the shareholders will be incentivized if there are any bad actors.

DOGE co-creator responds to Hoskinson’s views

The co-founder of Dogecoin, Billy Markus, has also responded to the remarks made by Hoskinson. On Twitter, Markus assured the Cardano co-founder that most of the users in the sector were not aware of the algorithms of both PoS and PoW networks. According to the Dogecoin co-founder, there were only eight people out of the millions in the crypto sector that understood anything, while the majority pretended to understand.
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