When it comes to Ethereum, there is some debate over whether it is a Proof of Stake (PoS) or a Proof of Work (PoW) system. The answer is that Ethereum actually uses a hybrid system which has elements of both PoS and PoW.
The main reason for this debate is that Ethereum is in the process of transitioning from PoW to PoS. The current consensus algorithm used by Ethereum is called Casper.
Casper is a hybrid algorithm that uses both PoW and PoS.
NOTE: WARNING: Ethereum is currently using a hybrid consensus mechanism involving both Proof of Work (PoW) and Proof of Stake (PoS). It is important to understand the differences between PoW and PoS before investing in Ethereum. Investing in either PoW or PoS without knowledge about the underlying technology could be risky.
The reason for this transition is that PoW is seen as being more energy intensive and less secure than PoS. By moving to a PoS system, Ethereum hopes to be more energy efficient and secure.
There are still some aspects of the Ethereum network that use PoW, but these are being phased out as the transition to PoS progresses. It is expected that the transition will be complete sometime in 2019.
So, to answer the question, Ethereum is currently a hybrid system that uses both PoW and PoS, but it is in the process of transitioning to a pure PoS system.
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Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. In 2014, Ethereum founders Vitalik Buterin, Gavin Wood, and Jeffrey Wilcke started work on a next-generation blockchain that had the ambitions to implement a general, fully trustless smart contract platform. Ethereum was officially announced at the North American Bitcoin Conference in Miami, in January of 2014.
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