What algorithm Ethereum use POS(proof of shake) or POW(proof of work)?

Question

I am very much curious to know what algorithm Ethereum is using and what is the impact of this algorithm in the current blockchain .

Answer 1

Ethereum currently uses a Proof of Work algorithm called Ethash, implementation details of which can be found on the wiki.

The plan is to move to a Proof of Stake algorithm called Casper at some point in the future. Current estimates from Vitalik put the chances of moving to PoS in 2017 at between 50% and 80%.

Further details about Ethereum's proposed use of PoS can be found at the following places:

• How Casper works: How does the Casper proof of stake algorithm work?
• PoS FAQ wiki
• Vitalik's PoS Design Philosophy
• A 5-part write-up of the history of Casper (part 1 is here)