The recent Ethereum Core Developers Meeting #40 revealed that two significant updates to the Ethereum network, Casper, and Sharder, will be postponed. But, that both may be released at the same time. Granted, don’t get frustrated by the delay, these are two major updates, for those who don’t know
What is Casper?
Casper is a Proof-of-Stake (PoS) consensus model. Initially proposed in October 2017, this new system is aimed at eliminating the existing shortcomings of Proof-of-Work (PoW) consensus systems in a Blockchain environment. Essentially, it will make the network more economically sound.
What is Sharding?
Simply put, Sharding is a method of boosting the number of transactions that the Ethereum Blockchain can handle. With Sharding, each network node in the Blockchain only has to store part of the entire chain, but rely on other nodes to provide adequate information. This will improve scalability of the Ethereum network in the long run.
As mentioned before, these are two very big updates that will significantly change the entire ETH network. It would reduce miner block rewards down from 3 ETH per block to 0.6 ETH. The reason for rescheduling the update is that, according to Vitalik Buterin, would greatly reduce the minimum ETH deposit amount that would be required to participate in upholding the ETH network.
At the moment, the amount necessary is 1,500 ETH (quite high under current market conditions), down to a much more sensible 32 ETH. This would make staking under ETH’s future PoS system much more accessible. Developers building decentralized applications on the network would automatically acquire all of the benefits provided by the update.
Why is this needed?
Well, the Ethereum network is relatively young, but it’s also quite popular. Especially due to the fact that it is the go-to platform for building decentralized applications. Literally, all kinds of things, like Etheremon and CryptoKitties. The latter of which severely clogged the ETH network at one point.