There is an exciting upgrade to Ethereum upcoming. A revolution in cryptocurrency, it transforms ETH into a dividend-producing asset. Let’s take a look at the Ethereum Casper Hardfork details ahead of launch.
30 November, AtoZForex – Ethereum developers are seeking to launch their experimental Casper proof-of-stake protocol. Developed by Ethereum inventor Vitalik Buterin, Casper Friendly Finality Gadget (FFG) is a hybrid Proof of Stake (PoS) and Proof of Work (PoW) implementation.
Ethereum Proof of Stake Casper Testnet in the pipeline
With the protocol, developers are able to test the first version of PoS when the code has taken form only rather than being at a theoretical design stage. It ensures security as well as gives the coders options to refine it fully as they see how it works in a virtual lab environment.
Once the implementation is complete, Ethereum will get benefits in scalability through lowered confirmation times. More importantly, ETH will become a dividend-producing asset or currency or investment.
That’s because ETH itself will be using for partial mining, to begin with, and then eventually full mining. The ETH tokens themselves will validate the network and instead of huge hardware mining farms, there will be only just ETH-locked laptop nodes. That locked ETH will provide interest, like a savings account, with holders transitioning towards paying themselves, if they please, rather than paying for miners, electricity, or hardware.
However, the nature of PoS requires some level of continued inflation at 2% or less annually. As it has a fixed rate, it may price in. And also it might even amount to effectively 0% because of lost ETH, similar to how pennies get forgotten or thrown away. The transaction fees would be unnecessary as nodes would be incentivizing through interest. This means it may have major implications for the usability of ETH’s Blockchain.
Ethereum’s blockchain, unlike Bitcoin, has the potential to scale to high levels, maintain decentralization, usability, preserve the peer-to-per nature in addition to fast confirmation times and non-existent fees.
Ethereum Casper Hardfork details
Ethereum will also stop consuming resources of any kind significantly. For the first time, a Blockchain will pay individuals to run a node through the dividend or interest. And this would motivate ordinary users to run a node due to the addition of a profit motive.
According to Buterin’s comments on Ethereum Casper Hardfork details:
“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.”
Similarly, Ethereum Foundation researcher Lane Rettig, stated:
“Casper FFG testnet is coming. We’ve 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.”
Meanwhile, although no one is sure about what the testnet might be up, there is a chance it would be during the summer or perhaps around Autumn. The Ethereum Foundation has been expanding and increasing its resources, bringing in new developers. The Casper protocol could be even incorporating into Constantinople Metropolis, the next Ethereum upgrade.
Think we missed something? Share your opinion with us in the comments section below.