BLOCKCHAIN SECRETS
Proof of Stake Most of the significant cryptocurrencies today work off of some variation of the proof of work model, either through the SHA256 hash or through another, similar hash. However, Ethereum, bitcoin’s largest competitor, has been working on an alternative that could significantly change the way blockchain transactions are verified.
In early 2017, Ethereum released the implementation guide for a hybrid proof of work/proof of stake system. They are rolling out this new system in phases before they make it the platform’s primary verification system. The plan currently states that the blockchain platform will alternate between the two systems. With the new system, about one out of every 100 blocks will use the new system while the rest will continue to use the old system.
There hope is that the new system will improve the rate at which they can produce new blocks. This will mark the first step in the plans for Ethereum’s evolution. This will be the first time a proof of stake system will be used to secure a blockchain, which will be a significant step forward. This new system will serve as the proof of concept test for an alternative to the proof of work model that dominates the cryptocurrency today and provide proponents the ability to test their claim of its superiority. When the new proof of stake model is rolled out on a larger scale, it will significantly reduce the amount of electricity that is required to verify a single block. 38
