On the 17th of September, Jimmy Song, via his Twitter account, slandered Ethereum’s PoS model. He stated that Ethereum is working exactly like the fiat central banking system. He further claimed that there is now a non-KYC penalty, and ETH owners are incentivized to keep their keys online or keep their coins in exchanges, which is a security risk.
Via his claim, he is faulting the Ethereum platform for deviating from the original reasons cryptocurrencies were incorporated, decentralized financial platforms with less security risk.
However, his post was tagged as inaccurate by several cryptocurrency enthusiasts. In contrast to his claim, investors can have different keys for withdrawing their ETH stake other than the one used to sign the block. In addition, there are non-custodial staking derivatives solutions, such as LidoFinance and Rocket Pool. These platforms could be the leading staking solutions.
Furthermore, Charles Hoskinson, the co-founder of Cardano, a platform that operates the PoS model, mentioned that such slanders were expected from Bitcoin Maxis, even when PoS models do not necessarily act the same way.Â
Cardano enthusiasts under the tweet’s thread pointed out some advantages of Cardano’s PoS.
In contrast to Jimmy Song’s claim on the PoS model, Cardano’s (ADA) PoS offers the following;
– The absence of slashing.
– 100% self-custody while staked.
– The stake is always liquid and spendable.
– Liquid rewards after every five days.
– A large number of ADA tokens are not required to stake.
With Ethereum’s merge update and the increasing interest in its new PoS model, it is expected that the maxis of the PoW-based platform will try to slander it.Â
While the Bitcoin maxi, Jimmy Song, criticized Ethereum for deviating toward centralization, his claims about the PoS model were refuted by crypto enthusiasts using Cardano as a better example.
Jimmy Song, via his Twitter account, slammed Ethereum’s PoS model, stating that Ethereum is working exactly like the fiat central banking system. He further claimed that ETH owners are incentivized to keep their keys online or keep their coins in exchanges, which is a security risk.
