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What Is Ethereum Casper?

In terms of market capitalization, Ethereum (ETH) is the second-largest cryptocurrency platform behind Bitcoin. It was created by Vitalik Buterin and Gavin Wood. The release date was 30 July 2015.

Although Bitcoin is easily the most popular digital currency, many people in the crypto universe will argue that Ethereum has had a larger impact. Why? Because Ethereum serves as the platform for approximately 2,000 cryptocurrencies and tokens. Among the top 100 cryptocurrencies by market capitalization, 47 use the Ethereum blockchain.

Based on the fact that so many digital currencies depend on Ethereum for their day-to-day operations, Ethereum is constantly trying to improve its platform along with the entire crypto ecosystem. During the past few years, Ethereum has been at the forefront of product innovation. This is particularly true in the area of validating transactions on the Ethereum blockchain. Ethereum Casper was introduced to improve the blockchain mining process.

Ethereum Casper – Background

When Satoshi Nakamoto launched Bitcoin on 3 January 2009, the original mining process was based on a concept known as proof-of-work (PoW). PoW involves miners sending transaction blocks to the network for verification. As the popularity of BTC increased, the crypto community realized that PoW was a slow and clumsy process for the mining community.

The chief complaint was the amount of energy and computational usage required to effectively use PoW. Additionally, it was generally disliked within the crypto community because the miners with the most powerful computers had an unfair advantage. Eventually, a small group of miners with supercomputers controlled the majority of the mining process. Of course, this defeated Nakamoto’s original goal of a decentralized platform with multiple users validating Bitcoin transactions.

When Ethereum was launched in 2015, PoW was the method used by the Ethereum mining community. Ethereum miners endured the same problems with PoW that plagued Bitcoin miners.

Proof of Stake

Over the next few years, a consortium of crypto enthusiasts developed a new process for verifying crypto transactions. The process was known as proof-of-stake (PoS). Essentially, PoS replaced the original mining process with a validation process.

Miners became validators. The most notable change between PoW and PoS was based on the fact that supercomputers were no longer needed to verify transaction blocks. Instead, the verification of blocks was randomly distributed within the community by an algorithm. Consequently, this prevented miners with supercomputers from monopolizing the entire PoW process. PoS relies on validators to process the crypto transactions, thus creating a more decentralized approach.

Introducing Casper

Where does Casper fit into the equation? Ethereum Casper was launched in June 2018. Without getting too technical, Casper adds an extra security layer to PoS by preventing malicious validators from attempting to force a hard fork by delivering a 51% attack on the blockchain network. Ethereum Casper is able to prevent this malicious attack from occurring. Casper is another example of how the cryptocurrency community is constantly improving the blockchain network.

Brief Summary of Ethereum Casper

  • Ethereum (ETH) is the second-largest cryptocurrency behind Bitcoin.
  • It was launched on 30 July 2015.
  • Miners send transaction blocks to the network for verification. This is known as proof-of-work (PoW).
  • PoW was a slow and clumsy process for the mining community.
  • PoW required a large amount of energy and computational usage.
  • ETH miners initially used PoW when it launched in July 2015.
  • The crypto community is replacing PoW with proof-of-stake (PoS).
  • PoS is a more fair and equitable experience for the mining community.
  • With PoS, blocks are verified using an algorithm.
  • The algorithm randomly distributes transaction data to the miners.
  • PoS replaces miners with validators, thus creating a more decentralized approach.
  • Ethereum Casper adds an extra layer of security.
  • Casper prevents malicious validators from attempting to deliver a 51% attack.
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