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Ethereum Proof Of Stake Casper

Lightning Network For Ethereum? Eth Surges As Casper Approaches

Lightning Network For Ethereum? Eth Surges As Casper Approaches

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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 >>

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 Proof Of Stake Casper Testnet Nears Launch

Ethereum's Proof Of Stake Casper Testnet Nears Launch

One of the biggest upgrade in ethereum, and perhaps in the entire ecosystem, might be closer to implementation than previously thought, withLane Rettig, a researcher at the Ethereum Foundation, stating : Casper FFG testnet is coming. Weve 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. Casper Friendly Finality Gadget (FFG) is a hybrid Proof of Stake (PoS) and Proof of Work (PoW) implementation developed by Vitalik Buterin, ethereums inventor, and others. This implementation is apparently sufficiently advanced to the extent it could even be incorporated in the next ethereum upgrade, Constantinople Metropolis. According to Ethnews, Buterin said : Theoretically, Casper may well be at the stage where we may actually just try doing it for the next fork, even if that sounds ambitious. There is no estimated date for the second Metropolis fork as far as we are aware. Initially, the intention was to have just one Metropolis upgrade, but some aspects were taking far too long, while much else had been finalized. Developers therefore split it into Byzantium and Constantinople, with Byzantium going through just a few weeks ago. Constantinople is now expected next and might potentially incorporate Casper. The Casper testnet is, as the name says, an environment where they can test the first version of PoS. That means the code is not finalized, but has taken form rather than being at the theoretical design stage. The purpose of the testnet is to firstly ensure security and secondly to refine it fully as coders see how it works in a virtual lab environment. It is the last stage of any upgrade, before it goes to main-net, and indicates a live launch might be just months away. When e Continue reading >>

New Code Released For Vlad Zamfir's Ethereum 'casper' Upgrade - Coindesk

New Code Released For Vlad Zamfir's Ethereum 'casper' Upgrade - Coindesk

New Code Released for Vlad Zamfir's Ethereum 'Casper' Upgrade The initial version of the Casper proof-of-stake protocol upgrade fromEthereum developer Vlad Zamfir has been released. Published on Tuesday , the code following its presentation at the Devcon3 event in Cancun earlier this month aims to fundamentally rework how blocks are created and propagated on the ethereum network. It's actually one of two simultaneous bids to develop code for Casper, with the other arm being spearheaded by network creator Vitalik Buterin. Zamfir's take on Casper comes several days after the publication of a white paper, titled " Casper the Friendly Ghost." The paper focuses on "correct-by-construction consensus protocols," seeking to simplify how blockchains achieve consensus in a "partially synchronous network." In other words, it's trying to reduce the overall complexity of the blockchain. This approach differs from Buterins own white papers on the upgrade. Buterin had previously released a three-part explanation of how his vision of Casper would operate. While Zamfir's code release may represent on a small part of a bigger effort, its publication signals a new phase of development that will bring ethereuma step closer to overhauling the infrastructure that underlies the network. As explained by CoinDesk , miners today discover and add new blocks through the proof-of-work process, in a way similar to how bitcoin functions (with some differences that are unique to ethereum, like the discovery of "uncle" blocks.) This energy-intensive process is a competitive one, driving miners to purchase power-hungry graphics cards a cycle that has led firms like AMD and Nivida to report significant revenues thanks to the renewed interest in cryptocurrency mining. Yet Casper would, if and when fully 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 >>

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 >>

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 >>

Ethereum Foundation Releases Alpha Casper Proof Of Stake Testnet | Hacker News

Ethereum Foundation Releases Alpha Casper Proof Of Stake Testnet | Hacker News

For people who don't know what this is (like me), they have a good FAQ explaining "Proof of Stake" vs "Proof of Work": > In proof of work (PoW) based public blockchains (e.g. Bitcoin and the current implementation of Ethereum), the algorithm rewards participants who solve cryptographic puzzles in order to validate transactions and create new blocks (i.e. mining). In PoS-based public blockchains (e.g. Ethereum's upcoming Casper implementation), a set of validators take turns proposing and voting on the next block, and the weight of each validator's vote depends on the size of its deposit (i.e. stake). Significant advantages of PoS include security, reduced risk of centralization, and energy efficiency. Yes, but the simplistic version of the argument is that any entity with such a large stake would be inherently incentivized to preserve the value of the currency and act in good faith. My intuition is that this is a risky proposition. If an entity can benefit themselves $x by making a bad-faith transaction, but it only costs them $y such that $y < $x, its rational to do it even if the costs to others are orders of magnitude greater. As a concrete example, if Coinbase double-spent a transaction for $10m and had enough stake to make the network accept this, would it necessarily devalue the currency through loss of trust by enough to make this unprofitable? Is this true for all possible actions by a 51% stakeholder? >Yes, but the simplistic version of the argument is that any entity with such a large stake would be inherently incentivized to preserve the value of the currency and act in good faith. This logic is, as you say, simplistic. Anyone with such a large stake can cash out, and then use their former large stake to fabricate an alternative chain in which they did not c Continue reading >>

How Does Ethereum's Casper Proof-of-stake Protocol Work?

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 >>

Ethereum Launches Casper Testnet, Paving The Way For Proof-of-stake

Ethereum Launches Casper Testnet, Paving The Way For Proof-of-stake

Ethereum Launches Casper Testnet, Paving the Way for Proof-of-Stake Ethereum developers have launched an alpha test network (testnet) for Casper, paving the way for the cryptocurrency to eventually transition to a proof-of-stake (PoS) consensus algorithm. Like bitcoin, ethereum currently operates on a proof-of-work (PoW) consensus algorithm, meaning that the network is secured and new currency units are issued through mining, whereby participants solve cryptographic puzzles to validate transactions and create new blocks. However, PoW has attracted criticism over the years, both for its tendency to centralize mining hardware into a few pools and for the amount of electricity it consumes. Ethereum aims to address these problems by transitioning to Casper , a proof-of-stake (PoS) consensus algorithm. Under Casper, participants can become validators by locking up or staking ether. Validators will take turns proposing and voting on blocks, and both the weight of their votes and the size of their rewards will hinge on the size of their stakes. According to developers, moving to Casper will greatly reduce the amount of electricity wasted through PoW mining. In addition to limiting its environmental impact, PoS will allow ethereum to dramatically reduce its rate of currency inflation since validators will have much lower overhead and will thus require smaller rewards to incentivize them to continue to serve as validators. Moreover, PoS will also reduce the incentive that validators have to centralize their influence. With decreased centralization comes increased security and, importantly, resistance to dreaded 51 percent attacks. Ethereum is not the first project to attempt to integrate a PoS consensus algorithm. However, most previous PoS implementations have been criticized Continue reading >>

What Is The Ethereum Casper Protocol?

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 >>

Vulnerable? Ethereum's Casper Tech Takes Criticism At Curacao Event

Vulnerable? Ethereum's Casper Tech Takes Criticism At Curacao Event

Vulnerable? Ethereum's Casper Tech Takes Criticism at Curacao Event Mar 2, 2018 at 20:00 UTC|UpdatedMar 4, 2018 at 12:22 UTC Is ethereum's biggest future upgrade "fundamentally vulnerable?" That was the claim put forward by distributed systems expert and founding VMware researcher Dahlia Malkhi on Friday, who used those exact words to describe ethereum's Casper protocol at Financial Cryptography 2018 in Curacao. During a keynote presentation, Malkhi's covered blockchain through the lens of a long-studied area of computer science that explores how nodes come to agreement. Still, it was her critical remarks on Casper, an upgrade that has promised to introduce a better, greener algorithm for the ethereum blockchain, that perhaps drew the most notice. Unlike bitcoin's pioneering proof-of-work system whereby miners expend real electricity and energy to verify blocks of transactions,proof-of-stake offers a kind of virtual mining, where the coins themselves are locked up (like capital in physical miners) and then perform computations. As such, proponents say proof-of-stake will have the same theoretical benefit to the system, without real-world power costs and environmental issues. But while the idea's opposition has been just as fierce,Malkhi's comments mark perhaps the first time a renownedcomputer science researcher has weighed in on the debate. "I think proof-of-stake is fundamentally vulnerable. You're giving authority to a group to call the shots [...] In my opinion, it's giving power to people who have lots of money. Yet, she softened the blow, adding that she believes Casper has led to "interesting" research that's fueled growing interest and innovation in the field of distributed systems. As someone who's been studying distributed systems for years, Malkhi's biggest 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 >>

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 >>

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