Casper - Ethereum's Latest Protocol Upgrade

Ethereum secures its ledger through a sequence of protocol upgrades. The most recent, Casper, replaces proof-of-work with proof-of-stake. Under Casper, validators lock ether into a deposit contract; they propose or attest to blocks. Each correct attestation earns ether. Each incorrect or absent attestation triggers a penalty that destroys part of the deposit. The protocol withholds trust - it relies on economic loss, not reputation.

Earlier consensus models allowed anonymous nodes to validate without collateral. Attackers lost nothing when they signed conflicting blocks. Casper removes that option. A validator who signs two competing blocks forfeits the entire deposit. The same rule applies to extended absence. Nodes therefore monitor connectivity, power along with bandwidth to avoid slashing.

Two separate codebases carry the Casper label. Casper FFG functions as a hybrid consensus layer that overlays proof-of-work with proof-of-stake checkpoints. Casper CBC rewrites the fork choice rule and the incentive scheme from first principles. Both projects share the deposit contract, the slashing condition, and the reward curve.

Cryptocurrency and token purchases carry high risk. This article does not constitute investment advice. Each reader should consult a licensed financial professional before committing funds. The author held bitcoin and ripple at the time of writing.