What is Ethereum Casper: Main Features, Pros & Cons

Casper is an
implementation proposed by Vitalik Buterin and the Ethereum Foundation. This
update provides rapid Ethereum convertation into a Proof of Stake blockchain.
PoS is also known as Ethereum 2.0.

The main Casper’s goal is
to protect the network from scammers by freezing funds as well as imposing a
fine for wrong bets.

Just find out the main
features as well as pros & cons of the Ethereum Casper Protocol with
Switchere. Let’s get started!

What is Ethereum Casper Protocol: How Does It Work

The latest version of the
protocol serves as a ‘hybrid’ of the Proof-of-Work and Proof-of-Stake
algorithms. The miners’ activity is still used for blocks creation, and ‘proof
of ownership’ is used to fix checkpoints of the blockchain.

The PoS system creates an
additional security layer on top of the PoW results. To do this, ‘steaks’
owners send their personal coins to the pool of validators. After these actions,
their share appears outside the chain every hundred blocks.

A block will be
considered found in case two-thirds of the participants support the proposal.
If votes aren’t gained, the chain continues to work using the efforts of
miners. What kind of rewards farm owners will receive — is still unknown. The
most popular idea in the community is 0.6 ETH coins.

The Main Advantages of Ethereum Casper

The transition to the
Casper protocol keeps pace with an ideology of the Ethereum project. In his
interviews, Vitalik Buterin announced that Ethereum is a platform for the
development of decentralized applications, and not a cryptocurrency in the
classical sense.

The transition to PoS as
well as the Casper protocol optimize the network, allowing you to steer clear
from the manipulative market of mining equipment manufacturers.

The main advantages of
Casper implementation:

 

• • decentralization;

• • increase of energy
    efficiency;

• • economic security;

• • scalability

• • potential.

The Main Disadvantages of Ethereum Casper

Much is to be done to
make Casper fully developed and applied. Let’s consider the main disadvantages
of Ethereum Casper.

Firstly, the update won’t
be able to finalize blocks in case Ethereum’s validating system becomes
damaged. Moreover, Casper isn’t totally resistant to 51% attacks.

Secondly, with the advent
of the Casper protocol in Ethereum, we will face the end of miners’ era. This
update will take out the ASIC miner manufacturers market for ETH mining, as
well as profoundly change the platform’s economy.

Disclaimer

This information is
provided for informational purposes only. Such information is not intended as
and may not be relied upon as trading advice. Before deciding to trade
cryptocurrencies, you should carefully consider your objectives, level of
experience, and risk appetite. Please do your own research and due diligence on
the services provided by online cryptocurrency trading platforms.