Ethereum is the second most popular cryptocurrency so far, after Bitcoin. The Blockchain protocol was birthed in 2013 by Vitalik Buterin. And has other co-founders which include Charles Hoskinson, Gavin wood, Joseph Lubin, and Anthony Di Iorio.
The decentralized blockchain platform has its operations run based on smart contracts through a P2P network, that executes application codes. These Smart Contracts give users the ability to indulge in transactions with each other without the need for a central authorizing entity or body.
As a Blockchain protocol, Ethereum follows the basic principles which govern the decision-making and security of any Blockchain, which is known as the Consensus algorithm or mechanism. It should be known that Ethereum works with the PoW (proof of work) consensus model and recently a possibility of the POS (Proof of Stake) consensus model.
Proof of Work
Proof-of-work just as the name implies is the algorithm based on the work input of miners, this sets the difficulty level and background rules for the miners to follow. PoW requires miners to solve complex cryptographic puzzles, mining is the work done or put in. This is the very act that adds valid blocks to a Blockchain under this consensus model. The more work the more the added chain and the higher the number of blocks and this determines the network’s level of accuracy.
Proof of Stake
This type of consensus mechanism helps in processing transactions via the validation of entries. In POS crypto owners are the validators and help validate block transactions. This is based on the number of coins staked by a validator. Unlike in PoW, Proof of Stake requires validators to simply hold and stake tokens of a particular Blockchain. This culminates in the proper functioning of the supposed Blockchain.
ETHEREUM, merging POW and POS
Even with the optimism surrounding Ethereum’s shift to proof-of-stake (POS), Some individuals think otherwise of the protocol as they took to Twitter to air their views.
Nick Payton, a Blockchain enthusiast in his Tweet aired his belief that voting to effect change on proof of stake platforms, only shows that POS assets were securities. This triggered the response of Vitalik Buterin, co-founder of Ethereum. The programmer replied that the tweet was an unmitigated bare-faced lie.
Buterin went further to explain that Proof-of-stake doesn’t include parameter voting on the protocol, similar in the same manner as proof of work. He further explained that the network node in the two consensus models (POW and POS) rejects invalid blocks.
Furthermore, Vivek Raman has shared positive insights regarding the upcoming merge. The finance researcher, via a Twitter thread, said that the adoption of POS would give Ethereum(ETH) more structure economically to compete for the supremacy that Bitcoin currently holds.