Ethereum has completed the first implementation of Casper, a consensus that uses Proof of Stake. This is according to an announcement made yesterday on Reddit and a YouTube video explaining the update.
The update said a “preliminary Casper Testnet is on its way,” meaning they are close to performing specific tests on the consensus. The news means the network is getting closer to implementing Casper although no known date for the implementation.
In Ethereum, PoS will be a layer on top of PoW with Casper. POW will then be eliminating completely in later iterations.
Unlike Proof of Work that requires lots of hardware and electricity to confirm transactions. Thus, which relates to a centralization of networks. The Proof of Stake requires much lesser computational power to find the correct block.
Besides, Proof of Work would support more transactions and scalability on Ethereum. However, which currently can handle 10 to 20 transactions per second. Thus it means the network would get bog down especially when there is a lot of Initial Coin Offering (ICO).
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Casper is one of the updates on Ethereum, with more coming. Ethereum co-founder Vitalik Buterin announced a “modest proposal,” which is a multi-year vision for the network at the Ethereum DevCon3 developer conference in November.
He said there would be sharding to allow scalability — data would be divided into subsets and each node would only store a small chunk of the total network and avoid the need to store terabytes of state data as it happens currently. This would make the ecosystem to process thousands of transactions per second.