Ethereum a Step Closer to Proof of Stake
The most important change to Ethereum, the moving to Proof-of-Stake securing of the blockchain, is coming closer as a test net for the Casper update is in the works.
Previously delayed, the Casper update has been brought forward, presumably due to the better hiring power of the Ethereum foundation. And with Ethereum breaking the $500 barrier in line with therecord-breaking streak of the cryptocurrency market, the funding may continue to attract developer talent.
With proof of stake, any owner of ETH coins could secure the network and receive rewards. The move toward PoS will mean Ethereum is at first a mixed coin with some mining and staking, until it moves to the more energy-efficient PoS mechanism.
The locking up of ETH in nodes will create additional scarcity. The system will become more centralized, resembling DASH and its Master Nodes. But this is also a scaling solution which would help proliferate verified transactions through the network faster.
With the Casper update, the next step after theByzantiumhard fork, Ethereum will aim to achieve the speeds of VISA, or at least reasonably expand the capacity of its network. At the moment, Ethereum is faster than Bitcoin, but still handles around 13 transactions per second and has seen serious traffic jams.
The rise of Ethereum first happened around the hype for ICOs, but as BTC has crossed the $11,000 barrier, cryptocurrencies are going into the mainstream and market prices are moving up, inviting new buyers. ETH coins seem to be appreciating by the hour, trading at $513 as the leading coins are making rapid gains.
The projections for Ethereum include a market price of $1,000 at year's end. At the moment, Ethereum has not managed to gain against Bitcoin, and for now has given up the hopes of displacing the leading asset, while remaining one of the better payment channels using cryptocurrencies.
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