Cardano Ranks Among Top Staking Networks, Report Finds

Cardano

Cardano outperforms decentralized staking networks

In a thread of tweets, the crypto researcher Sun Highlights what sets Cardano apart from other proof-of-stake chains, including Ethereum. In mid-September, Ethereum switched from a proof-of-work consensus to a proof-of-stake (PoS) in a “merge” upgrade.

According to staking rewards, Cardano ranks as the second largest staking network after Ethereum with a staking market cap of $8 billion, while Ethereum had a $21 billion staking market cap.

Here are the details on the top two PoS blockchains

According to Suraj, five metrics are important for PoS-based blockchains: staking ratio, initial coin distribution, Nakamoto coefficient (MAV), total number of validator nodes, and individual wallets participating in staking.

There are primarily two metrics that reflect participation in staking, which are the staking ratio and the number of individual wallets participating in staking.

In Cardano, stakeholders have the option of running their own validators or delegating ADA to preferred validators. Since Cardano has no lock-in period, ADA can be redeemed whenever desired.

Staking rewards and ETH staking remain locked in Ethereum, with no ability to withdraw. Withdrawals are planned for the upcoming Shanghai upgrade. Likewise, staking is dependent on centralized staking providers like Lido and Coinbase.

There are two types of Ethereum nodes: nodes that can propose blocks and nodes that cannot. Nodes proposing blocks are scarce on Ethereum and require economic resources such as ETH to mine.

The other nodes on the network, which form the majority, are not required to commit any economic resources and do not propose blocks, but they still serve a critical role in securing the network. Regarding the degree of participation of total coins in circulation in staking, which refers to the staking ratio, Cardano has a staking ratio of 71%, whereas Ethereum has a staking ratio of 13%.

The total number of individual staking wallets in Cardano can be compared to the total number of “unique depositors” in Ethereum. In this regard, Cardano can be said to have 14 times more participation than Ethereum.

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