Ethereum plans to transition from Proof of Work (PoW) to Proof of Stake (PoS) through a significant upgrade called Ethereum 2.0, also known as Serenity. This upgrade involves implementing a new consensus mechanism called Casper, which will replace the current PoW algorithm. The transition to PoS will involve several phases, including the Beacon Chain, Shard Chains, and the final merge where Ethereum mainnet transitions fully to PoS. Validators will be required to stake 32 Ether to participate in block validation and consensus, and they will be rewarded for their participation. This transition aims to improve scalability, security, and energy efficiency of the Ethereum network.
