Ethereum's Proof of Stake Implementation
After the Merge in September 2022, Ethereum transitioned from PoW to a PoS consensus layer called Beacon Chain. Validators need to stake 32 ETH to become validators, and rewards are distributed based on the amount staked and the length of time staked.
Solana's Proof of Stake Implementation
Solana uses a unique combination of Proof of History (PoH) and PoS, called Tower BFT (Byzantine Fault Tolerance). Proof of History is a clock mechanism that helps Solana achieve high transaction throughput by providing a way to cryptographically verify the order and passage of time between events. Validators are selected based on a combination of stake and a specialized timing mechanism.
Cardano's Proof of Stake Implementation
Cardano uses a PoS protocol called Ouroboros, which combines staking with a delegated proof-of-stake (DPoS) mechanism. In Ouroboros, stake pools are created by stake pool operators, and users can delegate their stake to these pools, which then participate in the consensus process. Rewards are distributed to stake pool operators and delegators based on their stake and the pool's performance.
Staking Requirements
The minimum staking requirements and delegation processes vary across the three networks. On Ethereum, validators must stake 32 ETH. In contrast, Cardano allows users to stake smaller amounts by delegating to stake pools. When staking coins on Ndax, users do not need 32 ETH. Instead, they delegate their coins to Ndax and, in return, pay Ndax a low commission for the delegation service.
Scalability and Transaction Throughput
Solana's unique PoH mechanism allows it to achieve higher transaction throughput compared to Ethereum and Cardano, at least currently. However, both Ethereum and Cardano have roadmaps for improving scalability.
Decentralization Approach
While all three networks aim for decentralization, their approaches differ. Solana prioritizes high throughput and low latency, while Cardano emphasizes a more decentralized and sustainable approach through its DPoS model and peer-reviewed research.
These differences in Proof of Stake implementations reflect the varying design goals and trade-offs made by each project, catering to different use cases and prioritizing different aspects of blockchain performance, security, and decentralization.