The Steem blockchain was upgraded earlier today. You may experience trouble posting and transacting while the new bandwidth system stabilizes. Read more here.

Why Ethereum Is Moving To Proof Of Stake [Explained]

in bitcoin •  last year

Ethereum is moving into a Proof of Stake based crypto currency.
The algorythm is yet to be finalised but is forecast to be released in November.

Why is Ethereum moving into this type of operation?

In short this is why.

This is a Bitcoin mining farm.
Because Bitcoin is a proof of work platform,
all a person has to do to control
a large percentage of bitcoin is build a big farm.

The bigger the farm is, the bigger the amount of work
which equals more power.

Since there are power hungry people
with alot of money to buy hardware,
it would be easy for this type of person
to invest in controlling Ethereum.

However, if Ethereum moves into proof of stake,
then the power of the vote goes to the holder of the most Ethereum.

In this proof of stake model named Casper
an amount of Ether will be locked into holding
for the user to mine. A guess at this number is 1000 Eth.

So if you would like to mine you will need to have 1000 Eth
to become part of the network. If you would like to trick the
algorythm into paying you then your 1000 Eth will be deleted.

This model ensures fairness and if someone comes on with
bad intentions they risk loosing 1000 Eth lots on every attempt.

The only way for someone to get 51% of the Eth blockchain is for
them to:

  • Already own 51% of the Ether in existance
  • Buy 51% of the Ether in existance.
  • Attempt to trick the algorythm and risk 1000 Eth every try.

  • Without this move the future of Ethereum could fall into the hands
    of anyone with alot of money to spend on hardware. Which is a
    bad idea.

    Authors get paid when people like you upvote their post.
    If you enjoyed what you read here, create your account today and start earning FREE STEEM!
    Sort Order:  

    Interesting! Do you know when they are going to make the switch. I know Casper isn't complete.

    ·

    Hi whatiscrypto!
    Apparently in November. But the forecast isn't set in stone.

    ·
    ·

    Insightful post. Keep us all updated about this staking proof algo change