Cardano has had PoS for two years now and its decentralization is slowly growing. Ethereum switched to PoS on September 15, 2022. The goal was to reduce the energy burden on the planet and increase decentralization. The latter has unfortunately failed. Rather, its decentralization has declined substantially after Ethereum’s transition to PoS. Cardano and Ethereum differ fundamentally in the quality of decentralization. How is this possible when both networks use PoS? The devil is in the details. While the design of PoS has been thought out to the last detail in the case of Cardano, in the case of Ethereum it gives a half-baked and unfinished impression. Let’s briefly reflect on the fundamental differences in PoS designs and look at the statistics on decentralization.
- Cardano has non-custodial staking. Ethereum forces users to give up ETH or signature keys.
- Cardano has only one entity that has more than 10% share in the network (Binance has an 11% share). Ethereum has more such entities and the largest has a 30% share.
- Cardano’s MAV is 24. Ethereum’s MAV is 3.
- There is a fundamental difference between ADA and stETH in terms of decentralization.