Casper: What Is Known About The New Ethereum's Network Upgrade?

On May 8, developers released a planned improvement to Ethereum's network - a new version of the code of Casper.

Hybrid Casper Friendly Finality Gadget was introduced to move network away from mining-related problems, as "Excessive energy consumption, issues with equal access to mining hardware, mining pool centralization, and an emerging market of ASICs", the ultimate goal being to move the network from a PoW to a PoS system.

Let's see what is known about "Possibly the most significant" change to the network to date, according to Ethereum News.Energy consumption and commissions.

The reality is that as all these miners simultaneously try to process one block, the complexity of production increases and the network bandwidth remains the same.

The arrival of super powerful ASIC miners in the market has become a serious threat for decentralized networks, as they increase the chances that one of the mining pools will occupy a significant share of the hash and make the network centralized.

This new protocol is called Casper - Friendly Finality Gadget and it completely changes the principles of creating and distributing Ethereum blocks, while reducing the overall complexity of the whole blockchain.

"Through the use of Ether deposits, slashing conditions, and a modified fork choice, FFG allows the underlying PoW blockchain to be finalized. As network security is greatly shifted from PoW to PoS, PoW block rewards are reduced."

The verification of transactions inside each shard will be performed by validators who are the main marshals of the Casper system along with the miners.

At the same time, the reward for the miners for the production of ethers will decrease fivefold - from the current 3 ETH to 0.6 ETH. This will make the coin less attractive for ASIC miners and will reduce the risks of network centralization.

The Ethereum foundation spent three years to apply all the accumulated experience in making the network decentralized, efficient and competitive industry improving in the long run.