Casper Ethereum: Definition, Differences, & Advantages
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Casper Ethereum: Definition, Differences, & Advantages

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Casper Ethereum: Definition, Differences, & Advantages

Apa Itu Casper (Ethereum) & Perbedaan PoW Vs PoS

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Ethereum continues to lead the way in innovation in the development of blockchain technology to date. One of the notable advancements that Ethereum has achieved is implementing a consensus protocol known as “Casper.”


Casper, which differs from the Proof-of-Work (PoW) method that has long dominated the blockchain world, is a revolutionary approach to creating a consensus mechanism to improve scalability, security, and energy efficiency on the Ethereum network.


Now, to understand more about what Casper (Ethereum) is, how it works, its features, and its advantages, check out the full review below!


What is Casper (Ethereum)?


Apa Itu Casper (Ethereum) & Perbedaan PoW Vs PoS


In general, Casper Ethereum is a protocol that shifts Ethereum from a proof of work to a proof of stake (PoS) based blockchain. This change also includes transforming mining activities in the Ethereum network into staking.


The Casper protocol has two main implementations: Casper FFG (Friendly Finality Gadget) and Casper CBC (Correct Buy Constructions).


Casper FFG represents a transitional step from proof of work to proof of stake, although the initial stage still involves proof of work with a stake voting mechanism every 50 blocks.


On the other hand, Casper CBC is a protocol that fully adopts a new consensus, namely PoS.


In both consensus models, at least 2 to 3 validators are required to approve a transaction and generate a deposit that allows individuals to stake a certain amount of money.


However, the deposit may be lost if there are any bad actions. These two consensus models bring important capabilities to support various crypto projects using the Ethereum network.


What is the Difference between PoW and PoS?

Quoting, the existing Proof-of-Work (PoW) consensus mechanism for Ethereum is being replaced by an enhanced version of Proof-of-Stake (PoS).


The Proof-of-Work (PoW) consensus mechanism relies on computational processing power and is plagued by several shortcomings.


In contrast, Proof-of-Stake (PoS) consensus algorithms rely on token holder deposits to achieve consensus. Proof-of-Work (PoW) and Proof-of-Stake (PoS) are the most widely used consensus mechanisms.


The main idea behind Proof-of-Work (PoW) is that miners compete to solve complex cryptographic puzzles. The winner who solves the puzzle first can create a new block on the blockchain and receive a reward.


In contrast, in Proof-of-Stake (PoS), rather than miners competing against each other, they must lock up a portion of their coins as staking.


Validators are randomly selected to validate blocks based on their staking weight (how many coins they are staking).


2 Stage Casper Protocol

Phase 0: Beacon Chain. This phase will introduce the Proof of Stake concept into the Ethereum blockchain. Beacon Chain will be a new blockchain parallel to the current Ethereum blockchain.


It will manage and coordinate validators without running smart contracts or having accounts.


Phase 1: Sharding. This phase will provide massive scalability by dividing the Ethereum network into multiple shards, each capable of processing transactions in parallel.


The Ethereum network can only process about 15 transactions per second (TPS). Sharding will allow it to process thousands of TPS if not more.


Ethereum Casper is a protocol that combines Proof of Work and Proof of Stake. The Proof of Work part is the same as we have now, using the Ethash algorithm.


The Proof of Stake part is a new consensus mechanism called “Casper the Friendly Finality Gadget” (FFG).


The Casper FFG’s goal is to replace proof-of-work mining with proof-of-stake eventually. This means that people who currently use hardware to mine Ethereum can participate in validating and securing the network without having to buy expensive hardware.


How Casper Works


Apa Itu Casper (Ethereum) & Perbedaan PoW Vs PoS


Quoting, the change from Ethereum 1.0 to 2.0 is known as the “Serenity” upgrade and consists of three distinct phases. In the initial phase, Phase 0, a new blockchain called Beacon Chain was introduced.


FFG’s Casper protocol will govern the consensus mechanism for the innovative Proof of Stake (PoS) blockchain. Unlike the proof-of-work (PoW) mining process, where miners use expensive specialized devices to create and verify transaction blocks, implementing the mining process will remove Casper from Alaithiriom.


Instead, new blocks will be validated by block verifiers selected according to their quota. Simply put, the capacity to select each block checker will be determined by the amount of ETH allocated as a quota.


For example, someone who deposits 64 ETH will have twice the voting weight of someone who deposits the minimum amount.


To become a block voter in Serenity’s early stages, users must have a minimum of 32 ETH shares stored in a private smart contract built on the Ethereum 1.0 blockchain.


If all goes well, then a random committee of checkers will be selected to propose new blocks, and eventually, they will receive block rewards in return.


The block reward will most likely consist of transaction fees, as there is no direct reward from the block itself (as with mining).


It is important to note that each PoS implementation may offer different methods and reward models. The Casper model is still under development, and many details still need to be fleshed out.


Features of Casper

One of Casper’s advantages is its ability to introduce a staking system that supports Ethereum to become more environmentally friendly.


Regarding electricity and computing resource usage, Proof-of-Work (PoW) systems consume many resources.


In contrast, the Proof-of-Stake (PoS) model requires more efficient resources. When the PoS model was fully adopted in Ethereum, the existence of mining was no longer a prerequisite for maintaining the security of the blockchain, thus significantly reducing the need for resources.


One of the potentially important features of Casper is related to security. Casper will serve as a guardian responsible for managing and supervising the blockchain.


Casper will also act as a record keeper for the Ethereum 2.0 ledger. Therefore, if a validator acts improperly, they will be immediately identified and penalized.


Penalties for violating validator rules (in the form of ETH coins) will significantly impact the integrity of the network. Nonetheless, developers continue to discuss the potential for a 51% attack.


Ultimately, some individuals argue that Casper will increase Ethereum’s level of decentralization. Currently, the dominant power in the Ethereum network relies on resources that can be used to perform mining operations.


In a future scenario, anyone who can afford a sufficient amount of ether will have the ability to participate in keeping the Ethereum blockchain safe.


Advantages of Casper Ethereum

Casper’s presence on Ethereum as part of the update is not without reason but because of its advantages.


The change in consensus mechanism from PoW to PoS reduces the excessive use of resources and electrical energy usually associated with PoW.


Another advantage of Casper Ethereum is increased decentralization due to the absence of mining farms. In addition, this protocol can increase the security of the blockchain through its mechanisms.


If a validator commits fraud, they will lose their previously deposited funds and must exit the network immediately.


Therefore, there is no reason for users to try to manipulate the system for personal gain.


Thus, the Ethereum Casper functions like an accountant in the Ethereum 2.0 ledger who selects and organizes a number of block sequences in the chain.


It is reinforced by the belief that the Ethereum Casper is expected to contribute to decentralization within the Ethereum network significantly.


With an emphasis on that concept, it can be interpreted that every individual can purchase a large amount of Ethereum, which in turn allows them to contribute to maintaining the security of the blockchain network.


Limitations of Casper Ethereum

Although Casper Ethereum offers some advantages, it is inevitable that there are limitations that need to be overcome. The implementation process of Casper Ethereum still requires extra time and effort before reaching full implementation.


In addition, security needs to be further tested with detailed customizations to be finalized. Phase 0 in the Serenity update will require additional updates.


Thus, predictions regarding the final and operational outcome of Casper Ethereum are still a challenge.


These limitations also mean that Casper Ethereum cannot fully address conditions where the Ethereum validation system is compromised, leaving it at risk of a 51 percent attack.


As for the user perspective, the shortcoming lies in the limited access for users with large capital only.


With rules that make them frequently selected as validators, they can be consistently selected, earn transaction fees, and make significant profits.


However, challenges arise as some validators may not always be active, leaving their work unfinished, so Casper Ethereum requires considerable optimization.


Nonetheless, despite the advantages and disadvantages of Casper Ethereum, the protocol remains relevant. The long and complex transition to the PoS mechanism was done for obvious reasons.


Although it still requires a lot of further development and updates, Ethereum Casper can be considered a solution to overcome the problems that arise in the PoW consensus mechanism.


The updates implemented by Ethereum on its blockchain system are a key factor in why this crypto asset is highly recommended. The continuous development carried out by this crypto project reflects its commitment to providing maximum benefits to users.


Of course, this development can potentially affect the future price movements of Ethereum crypto assets.



In conclusion, Casper Ethereum is a protocol that shifts Ethereum from a proof of work to a proof of stake (PoS) based blockchain. This change also includes transforming mining activities in the Ethereum network into staking.


The Casper Ethereum protocol includes two main stages: Phase 0 (Beacon Chain) and Phase 1 (Sharding).


Ethereum Casper combines Proof of Work and Proof of Stake. Proof of Work uses the Ethash algorithm, while Proof of Stake is implemented through the “Casper the Friendly Finality Gadget” (FFG) consensus mechanism.


FFG’s Casper goal is to replace proof-of-work mining with proof-of-stake, allowing validator participation without expensive hardware for those currently mining Ethereum.


That discussion about Casper (ethereum) and the difference between POW and POS was interesting.


As additional information, to stay up-to-date with the development of the crypto world, you should continue to develop your knowledge by reading the crypto terms dictionary on INDODAX Academy.


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Now you understand what Casper (Ethereum) is, how it works, features, and advantages.


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