Ethereum Price: What The Casper Update Means For Ethereum
Ethereum price: What the Casper update means for Ethereum Ethereum is on a charge right now after the first testnet of a major update was released. Here's what it means. Ethereum , while many believe is the future of the internet, in its current form still has problems handling capacity, relies on miners for proof of work and is quickly becoming more expensive for transactions. List of exchanges that allow you to buy Ethereum In December, the increasingly popular Ethereum-based game CryptoKitties brought in so much traffic that it completely overwhelmed the Ethereum network for 24 hours. There are several improvements on the roadmap to eventually bring Ethereum to the point where it can handle as many transactions per second as the Visa network, decentralised and at a cheaper price. The first of these is known as the Casper update, and its initial test network was just released, which is why Ethereum's price has been going through the roof. Casper, once it's integrated will turn Ethereum from a Proof of Work platform into a Proof of Stake, which will make everything much faster and cheaper as it continues to grow. Currently, the Proof of Work system Ethereum uses means miners are needed to solve complex algorithms to support consensus and keep the network running. In the Proof of Stake world, these miners will be replaced by "Stakers". These Stakers will stake their coins in special wallets, and be paid dividends from network fees based on how much ETH they stake. Stakers will need to have a minimum amount of ETH before they can take part in the consensus. It's not sure yet how much ETH will be needed, however Ethereum founder Vitalik Buterin has said it could be around 1,000 to begin with. The biggest change which will come from this is that it will make Ethereum mine Continue reading >>
First Impressions Of Ethereums Casperproof Of Stake(pos)
Vitalik Buterin and Virgil Griffith have introduced a proof of stake-based finality system capable of overlaying an existing proof of work (PoW) blockchain. In their paper , entitled Casper the Friendly Finality Gadget, Buterin and Griffith explain that the first version of Casper (within Ethereum) could take on the form of a hybrid PoW/PoS system. The first available release of the alpha Casper Friendly Finality Gadget (FFG) testnet, built on pyethereum, achieves this. This hybrid PoW/PoS vision, albeit with only 14 listed nodes at the time of writing, can be observed on the following Ethereum Network Status Site . Installing Casper FFG on Ubuntu 16.04LTS Thankfully, the process of installing Casper FFG on Ubuntu as documented here  is relatively straight forward. This succinct installation process is thanks to the docker approach provided by Karl Floersch . Participating in the validation PoSprocess At present, my most significant hurdle to running a validating Casper FFG testnet node is not brought about by the installation process or commands. It is brought about by the fact that a validating Casper FFG node, on the testnet, must provide a minimum deposit of 1, 500 Casper FFG testnet ETH in order to participate in the validation process. As we mentioned previously, Casper FFG is a hybrid PoW/PoS system and therefore the Casper FFG node is able to be run in mining mode. The following gist contains a list of commands for mining Casper FFG testnet ETH using Ubuntu 16.04LTS. The following gist contains a list of commands for checking Casper FFG testnet ETH account balance (during/after mining). Of course, whilst mining is an option, it would be ideal if participants willing to try out the alpha Casper FFG testnet could have immediate access to the required Continue reading >>
Ethereum's Scalability Concerns Buoy Alternative Platforms - Bitcoinist.com
Ethereum may have emerged to be the dominant platform for the development of decentralized applications (dapps). However, issues concerning its scalability are starting to prompt developers to consider alternative platforms. Several notable projects have already moved on from Ethereum, choosing the likes of NEO and Stellar as their new platforms of choice. The market also seems to be getting excited by the emergence of these blockchains. Established trading platforms like eToro are now starting to support NEO due to the tokens strong showing in light of the massive crypto market correction this February. Stellar was also kept afloat by these new partnerships. Increased adoption would only help further their respective standings in the crypto space. This, however, should not take away from Ethereums accomplishments so far. The platform has been instrumental in ushering more participants in crypto activities. Many blockchain startups used the platform to conduct their token sales over the past year. It is also still currently the most popular blockchain and smart contract development platform. According to the State of Dapps, there are now over 1,090 dapps built on it. Ether, the networks token, sits behind Bitcoin as the second largest cryptocurrency with a market capitalization of over $91 billion. Usage is also on the rise especially now that more projects are gaining traction. The Ethereum blockchain already topped 160 million total transactions this February which is quite the feat since the blockchain has only been live since mid-2015. In comparison, Bitcoins blockchain has only recently reached 300 million total transactions even if it has already been around for nearly a decade. Ethereums popularity isnt without tradeoffs. As usage increases, the more scalability Continue reading >>
What Is The Current State Of Casper?
I've been reading a bit about Casper, but I couldn't find anything recent nor any technical details about it. I know the protocol is not finished but is there any information about it? I mean more than just a high level overview as one can read in the "Introducing Casper" post on the blog Also I was wondering if they were still working on Slasher or if it had been completely forsaken? Ethnews also had a recent article about it . According to them, a profitable POS validator will need a minimum of 1000 to 4000eth just to cover their gas cost. At $200/eth that's $200k $800k invested and locked up just to participate. The irony is that POS was suppose to improve democratization but instead it ensures only the very wealthy will be able to participate. How funny, better start saving now! Continue reading >>
Introducing Casper "the Friendly Ghost" - Ethereum Blog
Hi everyone Vlad here. Ive been working on the analysis and specification of proof-of-stake blockchain architecture since September 2014. While Vitalik and I havent agreed on all of the details of the spec, we do have consensus on many properties of the proof-of-stake protocol that will likely be implemented for the Serenity release! It is called Casper the friendly ghost because it is an adaptation of some of the principles of the GHOST (Greedy Heaviest-Observed Sub-Tree) protocol for proof-of-work consensus to proof-of-stake. This blog post (my first one!) shares properties that are likely to be true of Caspers implementation in the Serenity release. Formal verification and simulation of Caspers properties is under way, and will be published eventually in the meantime, please enjoy this high-level, informal discussion! : ) Security-deposit based security and authentication Casper is a security-deposit based economic consensus protocol. This means that nodes, so called bonded validators, have to place a security deposit (an action we call bonding) in order to serve the consensus by producing blocks. The protocols direct control of these security deposits is the primary way in which Casper affects the incentives of validators. Specifically, if a validator produces anything that Casper considers invalid, their deposit are forfeited along with the privilege of participating in the consensus process. The use of security deposits addresses the nothing at stake problem; that behaving badlyis not expensive. There is something at stake, and bonded validatorswho misbehave in an objectively verifiable mannerwill lose it. Very notably, a validators signature is only economically meaningful so long as that validator currently has a deposit. This means that clients can only rely o Continue reading >>
Ethereums Casper Update Comes Under Scrutiny From Tech Wizard In Curcao
Ethereums Casper Update Comes Under Scrutiny from Tech Wizard in Curcao Casper, one of Ethereum most anticipated updates is all set to be launched in 2018 but is it fundamentally vulnerable? Well, at least thats what distributed systems expert and founding VMware researcher Dahlia Malkhi had to say when asked about the update at the Financial Cryptography 2018 being held in Curacao and further went on to promise a better algorithm for the Ethereum blockchain. I think proof-of-stake is fundamentally vulnerable. Youre giving authority to a group to call the shots  In my opinion, its giving power to people who have lots of money. Havent heard the Casper update yet? Currently, Ethereum works on a proof of work protocol and is looking to switch to the proof of stake protocol with the Casper update which makes mining cost and energy efficient and rewards current Ethereum holders. While Malkhi isnt the first person to criticize the PoS protocol, her being the first to speak up from the world of computer science and research is definitely a setback. Yup, she did look to point the positives from the update by stating that Casper could be the start of the huge change in the field of distributed networks but was it only to soften the blow? Wondering why Malkhi has been so vocal about her criticism of the Pos system? It comes to 2 major attributes, safety, and liveness. Revealing about her talk with lead Casper author, Vlad Zamfir who believes the protocol is useful due to its liveness, Malkhi disagrees. According to her, the vulnerabilities in Casper like blockchain products leaves little to no utility even if live. She further went on to state that the idea lacks academic research thus important assumptions made during the development and implementation could be nullified. Als Continue reading >>
What Is Ethereum Casper Protocol? Crash Course
What is Ethereum Casper Protocol? Crash Course Angel Investors, Startups & Blockchain developers... If you are interested in Ethereum or Cryptocurrency in general, then you must be aware of the terms proof-of-stake and Ethereum Casper. There is no running away from these terms, they are everywhere. Now because there is so much data out there, anyone interested in the topic may go through paralysis via analysis. So, in this guide, we present to you the definitive guide to Casper and how it will change Ethereum forever. What is Ethereum Casper Protocol? Crash Course Most cryptocurrencies including Bitcoin run on proof-of-work. Proof-of-work as a process has the following steps to it: The miners solve cryptographic puzzles to mine a block to add to the blockchain . This process requires an immense amount of energy and computational usage. The puzzles have been designed in a way which makes it hard and taxing on the system. When a miner solves the puzzle, they present their block to the network for verification. Verifying whether the block belongs to the chain or not is an extremely simple process. That, in essence, is what the proof-of-work system is. Solving the puzzle is difficult but checking whether the solution is actually correct or not is easy. This is the system that Bitcoin and Ethereum (till now) have been using. However, there are some fundamental flaws in the system. As it turns out, there are quite a few problems with proof-of-work. First and foremost, proof of work is an extremely inefficient process because of the sheer amount of power and energy that it eats up. People and organizations that can afford faster and more powerful ASICs usually have a better chance of mining than the others. As a result of this, bitcoin isnt as decentralized as it wants to be. Continue reading >>
Update On The Ethereums Casper Pos Hybrid And Sharding
All seems to be going well for development at the worlds second most valuable cryptocurrency. The team at the Ethereum foundation is actively busy testing the latest featured of the Metropolis upgrade . One of the most important of these features was the movement from Proof-of-Work mining to Proof-of-Stake. Ethereum has been working on a hybrid between the two solutions that has aptly been named the Casper POS protocol . This has been on the Testnet and has been running for a few weeks already. According to Vitalik Buterin who is the founder of Ethereum: The Casper aspect of Casper, where two conflicting blocks should not be able to be finalized, seems to actually happen running and the network agrees all along what the final chain is Although the Casper Hybrid has been running in the testing environment, it has not been without a few problems. Apparently the nodes losing their connection and get floods of new connections so the developers have had to institute clever hacks to get around this. This means that the Ethereum developers will have to complete quite a bit more testing before there can be any sort of live implementation of the protocol. However, according to Buterin it seems as if the most important part of the upgrade is indeed effective. This is the manner in which conflicting nodes are able to reach a network consensus. With the minor reconnection issues corrected, it is entirely possible that we could see Casper hitting the Mainnet by the middle of the year. There has also been quite a lot of work that has been done on the sharding side. This is arguably one of the most important updates to blockchain technology ever as it aims to markedly decrease transaction times. Blockchain sharding uses parallelisation of blockchains. This will eliminate the ineffici Continue reading >>
Lightning Network For Ethereum? Eth Surges As Casper Approaches
Lightning Network For Ethereum? ETH Surges as Casper Approaches Lightning Network For Ethereum? ETH Surges as Casper Approaches As Bitcoin calms down after its latest roller-coaster ride, Ethereum has soared to unprecedented heights. The coin briefly peaked at just over $900 on January 2nd, and appears to be heading back up and beyond following a brief dip at the time of press. 2017 was a year of eye-popping growth for the cryptocurrency markets at large, and the rise of Ethereum was undoubtedly one of the most significant parts of the crypto journey throughout the year. According to Ethereums official blog, transactional volume on the ETH blockchain has more than doubled within the last several months. The network has reportedly processed an average of ten transactions per second for periods lasting as long as a few days. While ten tx/second may not seem to be much compared to the 24,000 tx/second capabilities of the Visa network, its more than double the average Bitcoins 4 tx/second. Ethereum also reported that the number of accounts created per day passed 100,000 as well as an increase of nodes (computers that uphold a blockchains network) despite rising system requirements. While much of Ethereums rise throughout the year can be contributed to the blossoming era of ICOs and several regulatory measures that legitimized Ethereum as legal tender in several countries throughout the world, the most recent rise could be attributed to the approaching Casper software update that will improve security and scalability on the Ethereum network. Although Bitcoins scalability issues have received quite a bit more publicity than Ethereums, implementing a scalability solution for the Ethereum network has become an increasingly urgent task as the network supports a growing number o Continue reading >>
Proof Of Stake Faq Ethereum/wiki Wiki Github
See A Proof of Stake Design Philosophy for a more long-form argument. No need to consume large quantities of electricity in order to secure a blockchain (eg. it's estimated that both Bitcoin and Ethereum burn over $1 million worth of electricity and hardware costs per day as part of their consensus mechanism). Because of the lack of high electricity consumption, there is not as much need to issue as many new coins in order to motivate participants to keep participating in the network. It may theoretically even be possible to have negative net issuance, where a portion of transaction fees is "burned" and so the supply goes down over time. Proof of stake opens the door to a wider array of techniques that use game-theoretic mechanism design in order to better discourage centralized cartels from forming and, if they do form, from acting in ways that are harmful to the network (eg. like selfish mining in proof of work). Reduced centralization risks, as economies of scale are much less of an issue. $10 million of coins will get you exactly 10 times higher returns than $1 million of coins, without any additional disproportionate gains because at the higher level you can afford better mass-production equipment. Ability to use economic penalties to make various forms of 51% attacks vastly more expensive to carry out than proof of work - to paraphrase Vlad Zamfir, "it's as though your ASIC farm burned down if you participated in a 51% attack". How does proof of stake fit into traditional Byzantine fault tolerance research? There are several fundamental results from Byzantine fault tolerance research that apply to all consensus algorithms, including traditional consensus algorithms like PBFT but also any proof of stake algorithm and, with the appropriate mathematical modeling, pr Continue reading >>
How Does Ethereum's Casper Proof-of-stake Protocol Work?
How does Ethereum's Casper proof-of-stake protocol work? Casper is a security deposit based economic consensus protocol. It is intended to replace the current Proof-of-Work algorithm used by Ethereum. Why are they creating a new Proof-of-Stake(PoS) protocol? The Ethereum developers want to address the flaws with the existing PoS protocols. The main reason they are developing this algorithm is the "nothing at stake problem." The idea behind it is that validators are not being punished if they start forking the chain for their own gains. With the existing protocols if the chain splits the validators will not get fined if they continue validating blocks on both chains. Why would they do that? It is a simple backup plan. If you mine on both chains, you are likely going to gain more money/tokens/coins from that. What Casper does is that it forces validators to deposit a certain amount of tokens and these tokens would serve as collateral. If you do not play by the rules, you will lose your money. Secondly, Casper introduces a new consensus rule where validators bet on the future outcome of the blockchain. The bets are placed from the provided deposits. The math behind all of this ensures that the highest bet on the future outcome will be the actual outcome. If a validator bets with high probability on a different outcome he/she will lose their deposit. Casper is a cooperative consensus algorithm where in order to get maximum revenue as a validator you need 100% of all validators to be online or follow the same rules. As a validator, it is in your best interest to play by the rules. Continue reading >>
What Is The Ethereum Casper Protocol?
written by Jonnie Emsley February 7, 2018 The term Casper has been popping up lately in the Ethereum community like a whack-a-mole. Youll even see it hitting headlines alongside ETHs recent 30% spike in value , with punters explaining the upwards explosion as sheer anticipation of what Casper will do for Ethereum. With the successful launch of the Casper Testnet on the last day of 2017, excitement in the Ethereum community is gathering the momentum of a runaway freight train. Still, while everyone revs up for a Casper-supercharged world computer, its release date is as elusive and mysterious as a poltergeist, with Ethereums developers loosely announcing it will occur some time this year. But before we get ahead of ourselves, lets break it down and have a look at Ethereums ghostly counterpart. Casper is a hard fork of Ethereum that solves many of the underlying issues holding the cryptocurrency back from mass adoption. At its core, Casper aims to enhance Ethereums security and reduce the risk of centralization, while eliminating the financially and environmentally unsustainable practice of mining. Casper marks a shift to the Proof-of-Stake protocol, but it will start out as a hybrid with the current Proof-of-Work . In practice, this means that the PoS will only be used every 100th block. All details are exceedingly vague at this stage, but the eventual outcome of Casper could result in three versions (forks) of Ethereum: PoS, PoW, and Classic. As we count down to the Casper fork, Ethereum miners are starting to bite their nails. Why? It is highly probable that the transition to PoS will mark the end of Ethereum mining, as ETHs developers plan to detonate a difficulty bomb on the PoW fork when they release Casper. The bomb is a piece of Ethereum code that by design makes Continue reading >>
What Is Ethereum Casper?
Beginner's Guide To Ethereum Casper Hardfork: What You Need To Know
The Casper updates mission is straightforward, then: to shift ether from being a PoW coin to a Proof-of-Stake (PoS) coin . As opposed to the PoW consensus protocol, the PoS protocol achieves consensus through stakerssometimes referred to as minters, toowho stake their coins by locking them down in specialized wallets . With these stakers at work, mining will become redundant, meaning the Ethereum network post-Casper will rely on stakers and staking pools instead of miners for its operability. And, like miners, stakers will be rewarded for their service to the network. Minters will receive an annual dividend of ether (collected from network fees), so staking would be a lucrative endeavor for those with enough coins. Naturally, then, the more ETH you stake, the larger your annual dividends will be. For now, Ethereums developers havent arrived at a hard number for the amount of ETH that will be required to stake. What they have confirmed, though, is that the number will likely start out higher before gradually being brought considerably lower. For instance, Ethereum founder Vitalik Buterin has recently thrown around a guesstimate of needing approximately 1,000 ETH to be one of the networks inaugural stakers. He said that number could be dropped down to as low as 10 ETH over time. Whatever the number ends up being, users will still be able to band together and create staking pools, just like there are robust mining pools in the Bitcoin and Ethereum communities today. Youll simply pitch your desired amount of ether in, lock in down with your peers, and rake in the dividends together (to be shared proportionally, of course). Well, the Casper update is certainly a team effort, but its inarguable that top Ethereum researcher Vlad Zamfir has been at the vanguard of the updates Continue reading >>
How Ethereum's Casper Protocol Will Address Problems With Proof Of Stake
How Ethereum's Casper Protocol Will Address Problems With Proof Of Stake Bitcoin and Ethereum both currently operate under a Proof of Work protocol. Ethereum is moving from Proof of Work towards Proof of Stake under its new Casper protocol. Despite its many benefits, the drawbacks of Proof of Stake have prevented its widespread adoption. Casper aims to solve Proof of Stake's drawbacks, resulting in an improvement over existing Proof of Work and Proof of Stake protocols. The updated protocol improves the long term outlook of Ethereum's valuation. An overarching problem that cryptocurrencies must address is called the Byzantine General's Problem . The Byzantine General's Problem essentially simplifies down to: How do you prevent data from being corrupted or falsified in a network where there are nodes that have economic incentive to lie about the data? In application to cryptocurrency, the problem boils down to preventing attackers from lying about a coin's ledger, given the economic incentive of doing so. We need a way to form consensus on the ledger because anyone can create a block, while we only want a unique chain, so we want a way to decide which block to trust. The two main schools of thought to solving the Byzantine General's Problem are Proof of Work (PoW) and Proof of Stake (PoS). Explicitly, a "proof of work" is a piece of data which is difficult (costly, time-consuming) to produce but easy for others to verify and which satisfies certain requirements. Producing a proof of work can be a random process with low probability so that a lot of trial and error is required on average before a valid proof of work is generated. Currently Bitcoin, Ethereum, and the vast majority of other cryptocurrencies utilize some form of proof of work. PoW (referring to the protocol Continue reading >>