Ethereum developers have posted an update on the development of the blockchain’s proof-of-stake consensus mechanism.
Named Casper, the project aims to move the burden of Ethereum blockchain verification from hardware miners to voting nodes by allowing them to “stake” cryptocurrency and earn block rewards.
This would allow users to earn cryptocurrency passively, without the need for expensive graphics card rigs.
The development team has proposed an implementation of Casper Stage 1, which would move Ethereum from a pure proof-of-work consensus to a hybrid system with proof-of-stake elements.
This implementation would involve the cutting of block rewards from 3 ETH to 0.6 ETH for proof-of-work miners.
Ethereum miners would be drastically affected by this change and may end up halting their mining operations, due to a lack of profitability.
The development team did not state when it plans to implement Casper Stage 1.