Charles Hoskinson of Cardano Responds to Jack Dorsey’s Attack of Proof-of-Stake

Charles Hoskinson, the founder of Cardano, warned former Twitter CEO Jack Dorsey not to generalize about proof-of-stake systems.

Hoskinson claims that the Substack article he put on his profile would convince Bitcoin maximalists that the Cardano blockchain also includes slashing, a feature that enables it to punish bad actors in order to avoid other players from engaging in harmful behaviour.

It is considered that the capacity to utilize economic penalties to make 51% of assaults more costly is one of the key advantages of the proof-of-stake consensus mechanism. However, Bitcoin advocates consider this incentive structure a significant drawback.

Notably, Cardano’s version of proof-of-stake does not need cutting. The blockchain offers a one-of-a-kind compensation system that encourages shareholders to act wisely. Distributing the supply of ADA among holders via the dynamics of the free market strengthens the blockchain’s decentralization, hence increasing its resistance to assault.

A successful assault against Cardano would need someone to own the majority of all staked coins in order to gain network consensus control, which would make the attack prohibitively expensive. Consequently, it is quite probable that illogical malignant actors will only be able to constitute a small minority. If a pool operator becomes rogue, delegators will simply reject him or her, ensuring that a rogue pool will not be chosen to create new blocks.

In addition, harmful actors would be monetarily drained anyway, therefore slicing would be ineffective in preventing such an assault.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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