Even since Ethereum was conceived, the cryptocurrency had been working on the same mechanism of proof that also powers Bitcoin. Precisely why the researchers at Ether were trying to develop a proof-of-stake that would replace most of their miners with validators. This would also enable the reduction in the energy usage by the company. Also, it would allow the network of Ethereum to start processing even more transactions every second. This would, in turn, lead to the reduction of fees which would see the end of mining rigs.
Ethereum’s New Proof-Of-Stake Might Help It Leapfrog Bitcoin
All these upgrades are simply units in a much larger effort to create Ethereum 2.0. Although this upgrade doesn’t seem to have a fixed completion date, this newer network might soon become usable before its projected date.
Danny Ryan, the lead researcher for this project was heard mentioning that they were looking for more ways to bring out a shippable product that would save quite a lot of features for a later date. This entire project was done with the help of Mikhail Kalinin of Teku.
Currently, Ethereum is in its Phase 0 state. The Beacon chain transition is in place and helps coordinate several block creations. It also brings out rewards in the network of Eth2 which went live on the 1st of December last year. The proof-of-work currently has the blockchain running as efficiently as possible, whereas the expected proof-of-stake is working parallelly.
With this improved proof-of-stake, most of the users of this blockchain would be able to gain rewards that would help in the functioning of the network solely based on the Ethereum amount. This would be in complete contrast to the previous operation- which utilized the amount of computer power to mine coins.
