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Ethereum Casper Explained

Ethereum's Alpha Casper Testnet Explained : Ethtrader

Ethereum's Alpha Casper Testnet Explained : Ethtrader

Welcome to /r/EthTrader | Foundation Tip Jar | Rules | Policy | Mod Logs | Vote Tracking | News Timeline | Education | Comments RECDAO is a meta-community that seeks to provide Ethereum-based tools for improving how we use Reddit. Pre-register and then register your Reddit username on the Ethereum blockchain, vote in the dao, and be awarded community tokens based on your karma in community subs. Please see the FAQ for more details. TECHNICAL ANALYSIS FUNDAMENTAL ANALYSIS DISCUSSIONS DAPP DISCUSSIONS NEWS DAPP NEWS SCAMS WARNINGS TOKEN WARNINGS SECURITY RELEASE DAPP RELEASE EXCHANGES ADOPTION DAPP ADOPTION SENTIMENT STRATEGY METRICS MINING EDUCATIONAL MEDIA LEGACY DAPP ERC20 TOKEN AUGUR ALTETH ALTCOINS COMEDY SUPPORT TOOL You can correct inaccurate link-flair assignments by typing "[AutoMod]" along with the flair name in a top-level comment, e.g. [AutoMod] DAPP-NEWS. All flair names are capitalized, e.g. use [AutoMod] EXCHANGE instead of [AutoMod] Exchange. Two word flairs require a hyphen in between them. Requires 100 comment karma and 1-month account age. If this feature doesn't work, please message the modmail . Continue reading >>

Ethereum Casper 101 Jon Choi Medium

Ethereum Casper 101 Jon Choi Medium

tl;dr Casper will implement proof of stake in Ethereum. We begin with a review on why proof of stake matters and continue with its strengths & weaknesses. This post aims to provide a broad overview of Casper and clarify some of the confusion with respect to the two protocol design efforts related to Casper. The two proposed implementations share the same core design principle: applying cryptoeconomic mechanism design to secure the network while managing challenges regarding liveness, safety and synchrony assumptions. This post is also an overview of the progress so far and the challenges that lie ahead. Most importantly for fellow newcomers, the post identifies & defines key concepts and ties together various helpful resources under one context. The overarching intention is to make Casper and proof of stake more approachable to everyone in the community. Enjoy and please dont hesitate to reach out with questions, corrections or feedback ( email , twitter ). Casper is hardly a new project as it dates back to 2014, so fortunately it has a lot of related information online. However, despite the wealth of information out there, theres no easy jumping-off point for a beginner to ramp up and start engaging with the project. Thats why Im writing this post. While other posts, videos and papers focus on the specification, implementation and verification of Casper. This post focuses on the various guiding design principles of Casper, how it differs from competing approaches, why you should care about it, and how you can contribute to this project. In addition, Casper has maintained an exceptionally open and collaborative culture among Ethereum researchers, developers and community members. I hope this post can continue that tradition by introducing you to Casper and convincing y Continue reading >>

Major Ethereum Scaling Solution Casper To Enter Testnet Soon

Major Ethereum Scaling Solution Casper To Enter Testnet Soon

Major Ethereum Scaling Solution Casper to Enter Testnet Soon Lane Rettig, an Ethereum researcher, and founder at CryptoNYC, New Yorks first blockchain-focused coworking space and app studio, has revealed that the Casper FFG testnet will launch soon, and moves closer to being implemented onto the Ethereum blockchain network. Casper FFG is a solution introduced and developed by Ethereum co-founder Vitalik Buterin; it utilizes a hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus protocol to minimize mining and further scale the Ethereum network at an exponential rate. Casper FFG testnet is coming. We've got a three-node network working with two validators. Still a few bugs to work out. Whitepapers are cool and all but seeing this come to life is amazing. #ethereum #research @karl_dot_tech @VitalikButerin @changwu_tw pic.twitter.com/VlHAFMmRXi Lane Rettig (@lrettig) November 28, 2017 In a research paper, Christian Reitwiessner, the team lead for Ethereums Solidity and C++ implementations, explained that reaching scalability at a large capacity on the Ethereum network is only possible when users are not required to verify every single data point settled by the system. Reitwiessner explained : Scalability does not come from the fact that blockchains are relieved from their load by creating a big number of smaller chains and moving the transactions there. Scalability is only achieved once a user does not have to verify every single transaction that is sent to the system. The first step taken by the open-source community of Ethereum towards achieving high capacity scalability on the Ethereum network is to decrease transaction capacity for Ether payments. Following this decrease, developers will then implement Zcashs sk-SNARKs implementation in its latest Byzantium h Continue reading >>

Beginner's Guide To Ethereum Casper Hardfork: What You Need To Know

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 >>

Ethereum's Alpha Casper Testnet Explained | Csn

Ethereum's Alpha Casper Testnet Explained | Csn

Altcoins Ethereum Market Updates Markets Project Updates 0 Comments 1654 views 1 It was recently announced by Ethereum developer Karl Floersch on twitter that Ethereum would begin implementing its Alpha Casper Testnet. While many Eth hodlers rejoice, many of those just diving into crypto have more questions than answers. What is Casper? What is Staking? How can I get in on the action? The goal of this article is to briefly explain the Casper Testnet and highlight why its such a big deal. While you might think Casper is some complex formula, youd be wrong. When you think Casper, think Proof of Stake. If youre unfamiliar with Proof of Stake vs Proof of Work, you should read this first before continuing. Casper serves as the first testing model for Proof of Stake on the Ethereum network. To quote Vitalik Buterin himself, Casper is a partial consensus mechanism combining proof of stake algorithm research and Byzantine fault tolerant consensus theory.. Vitalik continues, The Casper overlay provides almost any proof of work chain with additional protections against block reversions.. The key difference between traditional proof-of-stake consensus systems and the Casper PoS is that validators can be punished for not following the rules and trying to validate malicious blocks. One way to look at it is to think about it like you are betting on the outcome. You place 1000 ETH assuming that the next block will be the one you bet on. However, if it is a bad transaction/block then you will lose your stake and be removed from the list of validators. According to Vitalik, anyone can join as a validator, as long as they have enough ETH to stake into the staking Smart Contract. When the participants in the system is low, the rewards increase to attract more. However, if there are too m Continue reading >>

Ethereum's Casper Is Almost Here, Here's What You Need To Know - Influencive

Ethereum's Casper Is Almost Here, Here's What You Need To Know - Influencive

For those unfamiliar with blockchain platform Ethereum , it currently runs on Proof of Work (PoW) consensus. The result is a lot of hardware and electricity is needed to confirm a transaction through a process called mining, or searching for the next block on the chain (hence blockchain.) Many are still unaware of the future of Ethereum,Casper, the friendly ghost. No thats not what it is, Casper is the new consensus strategy that Ethereum will run on once it is implemented. Casper uses the Proof of Stake (PoS) algorithm, which requires much less computational power to find the correct block. Proof of Stake differs in a way that nodes place a stake, similar to a security deposit to validate transactions. If they bet with the consensus they are likely to be rewarded, while betting against the consensus can result in a loss. The amount of influence that any given coin holder has is proportional to the amount of coins they hold (stake). Now after all that, you may ask why is Casper so important? Well, currently the Ethereum network can handle 10 to 20 transactions (txns) a second, which means the network can get bogged down quite easily, especially when an Initial Coin Offering (ICO) is going on. Anyone who was trying to send Ether during Bancors ICO back in June noticed that lots of transactions were not getting through due to the sheer volume of people trying to send Ether for the ICO. Vitalik Buterin (Co-founder of Ethereum) has spoken about how the network needs improvement. Here is a quote from him: the applications are thereall are on backburner now precisely because scalability is not there. I personally have cut down evangelism precisely because I see that the main bottleneck is now not interest, but tech. Switching to Casper will allow Ethereum to scale in order t Continue reading >>

What Is Casper? The Merkle

What Is Casper? The Merkle

Most people who invested time or money in Ethereum are aware of how the project will switch to proof-of-stake in the future. To do so, the developers have introduced a new algorithm known as Casper. Considering how the switch to PoS is getting ever closer for Ethereum, now would be a good time to take a closer look at how Casper works exactly. It is an intriguing system that will change Ethereum forever. Introducing a switch from proof-of-work to proof-of-stake requires a lot of work and research by the developers. Casper is one of the more advanced solutions to introduce such a change. It is a security-deposit based economic consensus protocol. That is quite a mouthful, but the concept is simple to explain. Network nodes become bonded validators and place a security deposit to facilitate the generation of PoS blocks. To put Casper into perspective, it will allow any member of the Ethereum ecosystem to participate in creating these new PoS blocks. When the nodes post a security deposit, they can bet on which block will be included in the future. Betting with the consensus will result in a reward, whereas betting against the consensus can result in losses. Attempting to exploitor game the consensus system will result in your security deposit becoming null and void. Casper is designed to create a fair PoS consensus mechanism. There is a small caveat to the anyone can participate aspect, though. It is always possible existing network participants will prevent new validators from entering the ecosystem. While that may not necessarily be the most plausible outcome, it is one factor to take into account. Ethereum users who have more coins than other members may try to throw their weight around a bit by posting larger security deposits. It is unclear how this will play out wh Continue reading >>

First Impressions Of Ethereums Casperproof Of Stake(pos)

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 [1], 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 [2]. Installing Casper FFG on Ubuntu 16.04LTS Thankfully, the process of installing Casper FFG on Ubuntu as documented here [3] is relatively straight forward. This succinct installation process is thanks to the docker approach provided by Karl Floersch [4]. 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 >>

Introduction To Ethereums Casper Proof-of-stake

Introduction To Ethereums Casper Proof-of-stake

With Ethereums DevCon 3 starting today in Cancun, Mexico, developers from around the world will be asking questions about the future of Ethereums blockchain. One upgrade that will be under the spotlight is the much-anticipated switch from the current Proof of Work consensus algorithm to Proof of Stake (PoS). In development since 2013, the Casper PoS solution by founder Vitalik Buterin and Ethereum developer Vlad Zamfir is almost complete and can see a potential release, as early as the second part of the Metropolis HF , Constantinople. Traditional Proof of Stake (PoS) is a consensus algorithm that allows wealthy participants of a network to validate blocks by staking or locking up their coins. In a Proof-of-Work (PoW) consensus system, the algorithm rewards miners (Block Reward) who solve complex cryptographic puzzles which create new blocks and validate transactions. In a Proof-of-Stake consensus system, the creator of a new block is chosen depending on the amount of coins they have locked up (Stake) and there are no block rewards in this system. Instead, Validators earn the transaction fees. But what happens if the wealthiest validators try to cheat or reverse transactions? Enter Vitaliks Casper PoS solution. The key difference between traditional proof-of-stake consensus systems and the Casper PoS is that validators can be punished for not following the rules and trying to validate malicious blocks. Think of it as a bet. If your stake is 1000 ETH, then youre essentially betting 1000 ETH that the next block to be included, is valid. However, if it is a bad transaction/block then you will lose your stake and be removed from the validators pool. According to Vitalik, anyone can join as a validator, as long as they have enough ETH to deposit/stake into the Casper Smart Continue reading >>

Casper Pos - How Will It Work? : Ethereum

Casper Pos - How Will It Work? : Ethereum

Welcome to r/Ethereum , the front page of the Web 3. No inappropriate behavior. This includes, but is not limited to: personal attacks, threats of violence, gossip, slurs of any kind, posting people's private information. Keep price discussion and market talk, memes & exchanges to subreddits such as /r/ethtrader Keep plain ICO advertisements to subreddits such as r/ethinvestor . Keep mining discussion to subreddits such as /r/EtherMining . No creating multiple accounts to get around Reddit rules. English language only. Please provide accurate translations where appropriate. Posts and comments must be made from an account at least 10 days old with a minimum of 20 comment karma. Exceptions may be made on a discretionary basis. 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

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 >>

Where's Casper? Inside Ethereum's Race To Reinvent Its Blockchain - Coindesk

Where's Casper? Inside Ethereum's Race To Reinvent Its Blockchain - Coindesk

Where's Casper? Inside Ethereum's Race to Reinvent its Blockchain If you've been following ethereum at all, you're likely aware the blockchain project has a lot riding on something called 'proof of stake'. A radical change to how the network forms consensus, the idea is somewhat simple in aim, but potentially history-changing in scope. The story goes like this: As far back as 2011 , some developers began to worry about the energy that bitcoin which uses a process called 'proof of work' (PoW) would require at scale (some recently estimated that it would consume as much energy as Denmark ). Further, bitcoin's mining firms were already becoming big businesses, and there was fear that this change would negatively impact user growth. Sure, there is the argument that proof-of-work's competition created a more secure network (and that pegging mining competition to Moore's Law led to natural market regulation), but some were eager for a greener alternative. To date, the protocol has been embraced by several projects (peercoin, NXT and others) but ethereum's transition would be unique in that it would essentially switch protocols mid-flight, so to speak. As a result, it's faced heavy criticism from those who long have alleged that both PoS, and ethereum's implementation, might not work. Theidea has been metits fair share of skepticism, partly because it's taking a long time to implement a version that developers agree is secure. In late 2015, Bitfury Group released a white paper exploring the differences between PoW and PoS, and the attack vectors that could have destroyed early naive versions of PoS. Yet, against this backdrop, ethereum developers have continued working on an alternative, arguing that they're making headway. Work has gone through many iterations and materializ Continue reading >>

Introducing Casper

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 >>

Proof Of Stake Faq Ethereum/wiki Wiki Github

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 >>

What Is Ethereum Casper Protocol? Crash Course

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 >>

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