People in the Cardano ecosystem are so familiar with its staking structure that they probably don't realize how good it is.
However, if they were to stake in the Ethereum ecosystem, they would discover just how inconvenient it is and how many layers of risk are stacked on top.
It may be controversial, but if I had to make an analogy, it's the feeling I get as a smartphone user when I have to use a 2G phone.
The slashing of 11.7 $ETH from 39 Ethereum validators yesterday highlights the advantages of Cardano staking structure.
In the Cardano ecosystem, anyone can stake even 10 ADA without worrying about slashing. However, it is structurally impossible to stake 0.1 ETH directly on Ethereum. A minimum of 32 ETH is required, and individuals must operate a validator node themselves.
This is why platforms like @ankr and @LidoFinance exist. they operate validators on behalf of many users by pooling their $ETH. Furthermore, because the staked $ETH is locked up, they issue liquid staking tokens like ankrETH and stETH to users.
In this incident, an operational error by the operators of 39 validators led to a slashing of 11.7 ETH, totaling approximately $52,000. If a slashing event were to occur on a much larger scale, the value of these liquid tokens could de-peg, potentially causing a cascading collapse of the DeFi ecosystem built upon them.
On Ethereum, liquid staking platforms were created to solve the barriers to staking, and liquid tokens were issued to solve the problem of lock-ups.
On the other hand, on Cardano, even just 10 ADA can be staked in a pool, and there are no lock-ups.
Consequently, platforms have been built on Ethereum to allow staking with as little as 0.1 ETH, and liquid tokens are issued. The critical difference is that, due to the slashing mechanism, Ethereum's structure carries the risk of a cascading collapse.
(source: migalabs)
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