Conceptualize by Vitalik Buterin in 2013, Ethereum is a smart contract, public blockchain platform that enables developers to build decentralized applications (dApps). Casper, on the other hand, is the implementation that will eventually convert Ethereum into a Proof of Stake (PoS) blockchain. Also known as Ethereum 2.0, the current Proof of Work (PoW) blockchain will no longer be used and mining will not be available on the platform.
Notably, two developers involved in the project of development are Casper CBC (Correct-by-Construction) and Casper FFG (Friendly Finality Gadget). Proposed by Ethereum Foundation researcher, Vlad Zamfir, Casper CBC focuses on PoS protocols for public blockchains, and has evolved into a wider field of study, comprising a family of PoS models. Casper FFG, on the other hand, was led by Ethereum co-founder Vitalik Buterin and aims at a hybrid PoW/PoS system.
How it Works
Known as the “Serenity” update, there will be three phases involved in Casper and it is currently in Phase 0. During the phase, a new blockchain called Beacon Chain will be launched and Casper FFG will drive the consensus mechanism of the new blockchain. Notably, the process of mining will be removed with the implementation of Casper and the process of transaction validation will be done by validator depending on investors’ stakes.
In other words, the more ETH staked in the platform, the higher the voting power weight. In order to be a validator, an amount of 32 Ether (ETH) are required to be deposited on a special smart contract account. However, it is notable that Ethereum Casper is still under development, thus details of rewards may be redefined in the future.
Benefits and Drawbacks of Casper
It is known that PoW blockchain is time-consuming and energy-wasting. Thus, with the implementation of Casper, Ethereum platform will be made environmentally friendly. Besides, Casper will bring security to the Ethereum network as it will work as a bookkeeper of the ledger and any malicious activity will be punished and removed immediately.
However, as far as theoretical limitations are concerned, Casper is believed to not be able to finalize blocks when Ethereum’s validating system gets corrupted. Besides, with the project currently under planning, development and implementation, Casper is not resistant to 51% attacks, with its efficiency and security remains unknown.
In conclusion, it is known that Ethereum is working hard on transitioning from PoW blockchain to PoS based, where mining will be completely removed, substituting it with the staking of coins. Thus, Casper is a perfect project developed for Ethereum that will help to create the foundation which Ethereum 2.0 network advancements will rely on. Besides, it is believed that adaptation and implementation of Casper can be used for other blockchain platforms moving forward.
Last but not least, Ethereum researcher, Justin Drake has previously hinted that Casper will finally roll out next year with the launching date on Bitcoin’s birthday, 3rd January 2020. So, it is time to sit tight and wait for the new development by Ethereum to arrive in the crypto sphere.
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Nurul is an English Language graduate who is highly passionate on writing, she literally breathes on it. An avid reader and a critical thinker, she covers on blockchain news during day and weeps at sad novels at night.