Half of Cardano testnet pool operators have already migrated to the mainnet
Cardano Shelley upgrade has witnessed rapid growth, with hundreds of stake pools joining the network within 24 hours of its launch on July 29. Users can entrust their ADA to these various independent pool operators and earn staking rewards.
Cardano Shelley mainnet has attracted over 400 pool operators with whom users can stake their funds
At the peak of its launch, Cardano had 481 active stake pools. However, that number is continually changing, and currently, it has up to 471 active stake pools at the time of writing.
Diagram of the stake pool network | Source: PoolTool.io
Cardano’s testnet statistics can predict future engagement on the blockchain. As of June 22, testnet had 1061 registered groups, 986 active groups, and 12.9 billion ADA ($ 2.4 billion) threatened.
It seems that another 500 groups will move from Cardano’s old testnet to the current mainnet shortly. Moreover, the fact that mainnet is more widely available may encourage more users and groups to participate in the bet. The rewards for this period have not been paid; However, current estimates suggest that users can earn up to 5.1% per year. The numbers from Cardano estimate an average return of about 4.6%.
Charles Hoskinson, CEO of IOHK, writes that decentralization is at the core of everything IOHK does. In this case, Cardano aims to achieve maximum decentralization by encouraging the community to distribute its assets through a large number of shares.
In this regard, Cardano’s closest competitor might be Tezos, which has about 425 active “bakers” with whom coin holders can stake their crypto with minimal effort and maintenance.
Meanwhile, IOHK argues that mining-based blockchains do not have this type of hierarchy. For example, on Bitcoin and Litecoin, mining tools are concentrated in several small mining groups.
Pool hashrate distribution, April 2020 | Source: BTC.com
It is unclear whether stake-based and authorization-based blockchains outperform mining-based blockchains. Regardless, Cardano expects that its decentralized features will attract dozens of app developers and tokens to the platform next year.
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