The code for Ethereum’s new proof-of-stake (PoS)-based consensus algorithm is almost ready, and it will be out by the end of next month. Let’s briefly discuss the roadmap and the benefits of the main features that will be incorporated in when “Ethereum 2.0” goes live.Ethereum Developer’s Meet
The bi-weekly meeting between Ethereum’s Core developers was held recently and during that conference call, one of the Ethereum Foundation researchers, Justin Drake, stated that Ethereum’s journey towards proof-of-stake consensus is on track and that the new code will be ready by June 30th, 2019. Other developers will use the new code when released as a blueprint to develop further on the smart contract platform.PoW vs. PoS
The fundamental difference between a Proof-of-work and Proof-of-Stake blockchain is that PoW requires mining which consumes electricity, while most PoS-based algorithms require a majority of stakeholders to vote, in order to validate the blocks (among other requirements).
Instead of performing energy intensive computations that determine which blocks are to be mined, it is the majority of stakeholders judging and voting to validate the blocks. Proponents of PoS claim it is more efficient and faster when compared to PoW, however, the level of security offered by both consensus protocols is a frequently debated topic among crypto community members.Casper and Sharding
When Ethereum transitions to a PoS blockchain, other codebase modifications will be made and the new chain will consist of a set of changes collectively known as “Ethereum 2.0.”
Ethereum 2.0 has two major components, namely Casper and Sharding. Casper would be released in “Phase Zero” and Sharding in the third release, namely “Phase 2.”
Casper is the new algorithm that replaces the traditional mining using computers and mining equipment with the “Block Validation System,” in which validators (majority stakeholders) will be involved in val...