What is Ethereum Casper?
Community Introduction by William M. Peaster
Casper is an update to the Ethereum network that involves switching the algorithm to Proof of Stake (PoS) (also known as Ethereum 2.0). Although the Ethereum project was launched in the summer of 2015 with a Proof of Work (PoW) blockchain, the developers planned a transition to a staking model as part of the long-term perspective. Once the transition is complete, the Ethereum network will no longer require mining.
To date, two versions of the update have been jointly developed in the Ethereum ecosystem: Casper CBC and Casper FFG. CBC was proposed by one of the researchers at the Ethereum Foundation, Vlad Zamfir. Initially, work on CBC focused on PoS protocols targeting public blockchains, but it has since evolved into a broader field that includes a whole family of Proof of Stake models.
Research in Casper FFG is carried out by Ethereum co-founder Vitalik Buterin. The original proposal consisted of a hybrid system including both PoW and PoS, but this approach is still under discussion and new proposals may eventually replace it with pure PoS.
It's worth noting that the planned transition to Ethereum 2.0 will start with Casper FFG, but this does not mean that Casper CBC will remain unusable. In fact, in the future it could be used to replace or complement Casper FFG
While both versions were developed for Ethereum, Casper is a Proof of Stake model that can be borrowed and implemented in other blockchain networks.
How it works?
The transition from Ethereum 1.0 to 2.0 is called “Serenity”. It will consist of three different stages. During the initial phase (Phase 0), a new blockchain called Beacon Chain will be launched. The rules established by the Casper FFG update will govern the consensus mechanism in the new PoS-based chain.
Unlike PoW mining, where miners use expensive and specialized equipment to create and validate blocks of transactions, the Casper update will remove the mining process from Ethereum. Alternatively, the verification and validation of new blocks will be carried out by validators who will be selected according to their share of coins in the network (stake).
In other words, each validator's choice will be determined by the amount of ETH they have allocated to the network as their share. For example, someone who deposited 64 ETH would have double the right to be selected for block validation as someone who deposited the minimum coin share amount. To become a validator in the first stage of Serenity, users will need to stake 32 Ether (ETH) - this can also be described as depositing into a special smart contract based on the previous Ethereum (1.0) blockchain network.
If the update goes well, validators will also be randomly selected and will be asked to forge new blocks and eventually receive a reward for validating them. The block reward will most likely consist of transaction fees only, due to the lack of a block subsidy.
It is worth noting that each practical implementation of PoS may present a completely different approach to the operating mechanism along with different reward models. Casper is still under development and many update details are yet to be determined
Advantages
One of the main advantages of Casper is staking, it will help Ethereum become an environmentally friendly blockchain. When it comes to energy and computing resources, PoW systems are extremely demanding, unlike PoS. When PoS is fully implemented in Ethereum, miners will no longer need to secure the blockchain and, for this reason, network resource consumption will decrease.
Another potential benefit relates to safety. At its core, Casper will be used as a selector responsible for ordering the block chain. This involves maintaining a ledger of all events that occur in Ethereum 2.0. Therefore, if a validator begins to act maliciously, he will be quickly eliminated and punished. The penalty for cheating is the removal of the validator's stake (in ETH), meaning that such rule violations will be very costly. However, developers are still discussing the theoretical possibility of carrying out a 51% attack.
In conclusion, some people have argued that Casper will provide Ethereum with a higher level of decentralization. At the moment, the most powerful in the network are those who have all the necessary resources for mining. In the future, anyone who can buy the required amount of ether will be able to ensure the security of its blockchain.
Flaws
The company still has a long way to go to finally develop and implement Casper. Currently, its effectiveness and safety have not yet been proven and many details will be determined and adjusted more than once. Until Serenity is at least at stage 0, we can't be sure how the update will look or behave.
As for the theoretical drawbacks, Casper will not be able to conclusively validate blocks if Ethereum's validation system is corrupted. Because it is currently structured, Casper is still not fully resistant to a 51% attack. In addition, a formal specification is still needed to define the rules for executing a fork that may be needed to respond to attacks in a timely manner.
Conclusion
Ethereum is moving from mining to staking, which means that after the upgrade, users will provide their ether (ETH) in the form of a certain share of coins to a special deposit address to protect the blockchain network. Casper is a technology that is used to final confirm blocks, as well as facilitate the transition to a new operating mechanism.
Casper will help create the foundation on which further improvements in Ethereum 2.0 will be based, and it is also intended to facilitate a smoother transition to PoS. Additionally, the open source nature of the blockchain environment also means that the benefits identified in Casper can be forked, modified, and implemented by other projects in the future.
Когда Casper будет официально запущен, это станет значительной вехой в истории Ethereum. Что касается того, когда стартует обновление, исследователь в Ethereum Джастин Дрейк ранее высказал свое мнение о возможности запуска первой фазы 3 января 2020 года (11-й день рождения биткоина). Тем не менее, эта дата была предварительным предположением. Запуск может произойти в любой момент в 2020 году.
