Ethereum launched the first version of its Casper update that is a move towards Ethereum’s shift from PoW to PoS consensus mechanism that will help in mitigating the issues with crypto mining. Currently experiencing green at $765 price level, ETH might soon hit the $1,000 mark.
Casper FFG: Ethereum’s new protocol update
The latest development in Ethereum’s aim to become a Proof of Stake is the release of the first version of the Casper “Friendly Finality Gadget”. The developers of the world’s second largest cryptocurrency have finally released the much-anticipated code of the Casper network upgrade.
The upgrade aims to add improvements in the consensus protocol of Ethereum’s blockchain network which means updating the blockchain ledger will require both proof-of-work and proof-of-stake protocol. However, the intention is to move onto the proof-of-stake protocol eventually.
Danny Ryan, the developer behind the Casper protocol update announced its first version on GitHub. This upgrade will help the client, auditors and other external parties to integrate the source code into their software more easily as explained by Ryan:
“v0.1.0 marks us more clearly tagging releases to help clients and external auditors more easily track the contract and changes.”
First announced in October 2017, Hybrid Casper FFG has been declared as the Ethereum improvement proposal that will keep the platform away from the mining issues.
Ethereum founder Vitalik Buterin discussed the Casper algorithm updates in a recent conference. Sharing his thoughts on Casper upgrade, he says:
“hopefully one of the more joyous experiences in ethereum in a fairly short time.”
With Ethereum’s inflation reduction, prices to take a surge
Once, more code has been written so that it can run the protocol of the crypto, the network will be implemented. Initially, the consensus will be achieved through PoW which will be gradually shifted to PoS.
It has also been mentioned by Vitalik that the users would need high configuration hardware and further the submission of at least 1,500 ETH to participate in Casper. However, nodes with less Ether would be able to participate in a pool by working together and sharing their profits.
The shift to PoS will further reduce the electricity wastage by mining. Now, with lower overhead, it has been claimed that the inflation rate of ethereum will also be lowered.
On the basis of the proposal information, the PoW miners reward by blocks will drop down to 0.6 ETH from 3 ETH while PoS stakers will receive 0.22 ETH that means the overall inflation rate will go down to 2 percent.
As more users and investors enter the market, the demand for digital currencies will be increased while a decrease in the sale, due to inflation would mean an increase in the prices of Ethereum.
A couple of days back, Ethereum had been down at $719 which after a series of ups and downs registered green digits.
Right alongside the Casper protocol update, Ethereum prices also rose about 4 percent in the last 24 hours. Currently, ETH price is at $765 with its first resistance at $772.59 followed by $791.06 resistance level. If ETH passes the resistance between the $812 and $823, we can see it hit the $1,000 price value.
What are your views on Casper protocol Update? Do you think ETH price will soon hit the $1,000 mark? Share your thoughts with us!