Casper (CSPR) is the first blockchain designed for mass adoption by businesses. It is based on a protocol designed by none other than the developers of Ethereum.
Casper, a common past with Ethereum
Ethereum 1.0 is a proof-of-work (PoW) blockchain, just like the Bitcoin network (BTC). It is the miners who ensure its security, by making their computing power available to validate transactions. This is called a proof of work. However, this process takes time and limits the speed of the network.
In order to solve this problem, it is no secret that Vitalik Buterin has ambitions to move to Ethereum 2.0 soon. This major update consists in implementing the FFG (Friendly Finality Gadget) protocol. This is a system where PoW and proof of stake (PoS) will coexist. The security of a PoS blockchain is ensured by the validators, instead of the miners. The validators escrow a certain number of tokens as collateral: for example, 32 ETH on Ethereum. If the validator acts maliciously, his collateral will be confiscated. This will discourage most of them!
Nevertheless, the FFG protocol remains a compromise between PoW and PoS. In several years, a second major update, the CBC (Correct By Construction) protocol, should be integrated to ensure the final transition to Ethereum 3.0. The network would then operate completely on the PoS principle. But what does this have to do with Casper, you might ask? Wait until you see the rest!
Ethereum teams started developing the CBC and FFG protocols in parallel. Nevertheless, in 2017, they had to start the implementation work for the switch to PoS. The community therefore opted for the FFG protocol, leaving CBC, which was considered less mature than its competitor. The team developing the CBC protocol then decided to separate from Ethereum in order to deploy it on a brand new blockchain, Casper.
Casper, a blockchain dedicated to companies
Casper is the first blockchain to focus its development on serving businesses. Its technology makes it possible to determine in advance and with precision the gas costs generated by each transaction carried out on the network. This advantage makes this blockchain a tool of choice for any company wishing to anticipate its expenses. In addition, Casper’s smart contracts will also be able to be scalable and specific to the needs of each company.
The Casper blockchain is also designed to support WebAssembly, a language used for application development. Developers who are not familiar with programming languages, such as Solidity, that are specific to blockchain technologies can use WebAssembly very easily. As a result, Casper creates a gateway for developers from any company to build their own dedicated applications on its blockchain.
In addition, the Casper team has built a converter that makes it easy to switch from the Solidity programming language used on Ethereum to the Rust language used to write Casper’s smart contracts. Making the work of developers easier is one of the keys to accelerating the adoption of a blockchain. In this way, Ethereum developers who want to determine how their applications will behave on the future version 3.0 can already test them on Casper.
Casper has already entered into a number of partnerships with companies such as IBM, Amazon Web Service (AWS) and WISeKey, a cyber-security company responsible for creating an NFT platform on the Casper blockchain.
Participating in staking on Casper
The Casper network is still young and few applications are available on its blockchain. Nevertheless, it is possible to participate in its security by delegating your tokens to the network’s validators. Storing your CSPR tokens, the token of the Casper blockchain, with a validator yields 12 to 20% annualized interest. Beforehand, it is necessary to have the Casperlabs Signer wallet, a Google extension similar to Metamask. It will also be necessary to have imported one’s CSPR tokens. They can be acquired on centralized platforms, such as Huobi or Gate.io.
You then have to go to CSPR.live to access the list of validators. The choice of the validator to whom to delegate your CSPR tokens is important. One of the parameters to study before deciding is the performance of the validator, i.e. the time during which the node has remained connected to the network. Without a connection to the network, it is impossible to collect the rewards for securing it. Therefore, it is important to look for validators that have a performance close to 100%.
Another parameter to look at is the commission rate. This is the fee that the validator will take from your interest for having staked your tokens with him. Be careful! Beware of fees that are too low. A validator must, despite everything, remain profitable, because running a node generates energy expenses that are reflected in the electricity bill. A fee of 5-10% seems reasonable for this service.
Once your CSPR tokens are deposited with the validator, they immediately start earning interest. Your balance is updated approximately every 2 hours. It is directly visible on the interface of CSPR.live in your personal space. You should also know that your tokens can be withdrawn at any time.
Casper is a recent blockchain. It is based on a protocol designed to be implemented on Ethereum in its final phase of proof of stake. CasperLabs is starting to partner with prestigious companies, and its future could be promising.