Ethereum, one of the leading coins on today’s crypto market, will decrease its inflation by 80% in a couple of months. This will be achieved with the release of latest Hybrid Casper upgrade, which changes the block rewards from 3 ETC to 0.82 ETH.
Because of the new upgrade, the scarcity of Ethereum will increase. Casper – the Friendly Finality Gadget (FFG) is often described as cross between Proof of Stake (PoS) and Proof of Work (PoW).
According to the community member, the POW protocol is wasteful and should be moved away from. The Ethereum Improvement Proposal (EIP) reads:
“Transitioning the Ethereum network from PoW to PoS has been on the roadmap and in the Yellow Paper since the launch of the protocol. Although effective in coming to a decentralized consensus, PoW consumes an incredible amount of energy, has no economic finality, and has no effective strategy in resisting cartels.”
According to the developers, Casper FFG contract is compatible with any block proposal mechanism, which makes its implementation much easier, as minimal changes to the current protocol are necessary.
The decision to move away from POW protocol could be motivated by many factors, including excessive energy consumption, mining pool centralization and the spread of ASIC miners.