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What is Casper (Ethereum)?
Casper is a blockchain that uses the Proof Of Stake consensus mechanism that applies Casper CBC (Correct-by-Construction) technology to make it easier to access blockchain technology.
The current Proof-of-Work (PoW) consensus mechanism for Ethereum is being replaced by an improved version of proof-of-stake (PoS).” The Proof of Work section is the same as what we have now, using the Ethash algorithm. The Proof of Stake section is a new consensus mechanism called the “Casper the Friendly Finality Gadget” (FFG).
Casper is a project designed to deploy PoS into the Ethereum network. This means that people who are currently using hardware to mine Ethereum will be able to participate in network validation and security without having to buy expensive hardware.
How Casper works
The Casper protocol will be implemented in two stages:
- Stage 0: Beacon Chain. This stage will introduce the Proof of Stake concept for the Ethereum blockchain. Beacon Chain will be a new blockchain running parallel to the current Ethereum blockchain. It will be used to manage and coordinate data validation checks without performing smart contracts or owning accounts.
- Stage 1: Sharding. This stage will provide great scalability by dividing the Ethereum network into pieces, each of which is capable of processing parallel transactions. Currently, the Ethereum network can only process about 15 transactions per second (TPS).” Sharding will allow it to handle thousands of TPS if not more.
See also: Crypto’s Uses And Misuses: Quarrel Between Reuters And Binance
The advantages that Casper brings to Ethereum
Reducing environmental impact
The Proof of Stake (PoS) system doesn’t require much effort to authenticate transactions, meaning miners don’t need high-powered hardware or consume a lot of power. This means lower costs and less environmental impact. This is especially important today because Bitcoin Mining is consuming more energy than other countries.
Increased scalability
Proof-of-Work requires that every transaction be confirmed by every node in the network before it can be completed. It uses a different validation method that allows Casper to process more transactions per second, resulting in faster and cheaper transactions in general.
Energy efficiency
The big benefit of switching to PoS is that it will be more energy efficient. In the long run, this will allow the amount of Ether in circulation to grow at a controlled and sustainable rate.
The ultimate goal of the Casper protocol is to convert Ethereum into version 2.0, also named “Serenity”. Ethereum 2.0 aims to be faster, more efficient and highly scalable.
