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


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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:

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