The first-ever working release of Casper FFG consensus mechanism has been launched today. The Friendly Finality Gadget – also known as FFG – was published on GitHub this Tuesday. GitHub is a very popular software development and version control website that allows programmers from around the world participate in developing projects initiated by someone else, along with storing micro-versions of that software so that the developers can rollback to any state that they like.
Developer Dany Ryan created Casper FFG for the sole purpose of changing how Etherium network reaches a consensus. The developer hopes to achieve this by replacing Proof of Work system with a “Proof of Stake” system, this exchange of methods has been implemented in Casper.
When the software is implemented, the expected results are that Casper will change Etherium’s mechanism which will then include combos of PoW (Proof of Work) and PoS (Proof of Stake). It should also be noted that Casper will largely depend upon the PoW method during the initial stages and the PoS system will be treated as a redundant mechanism to double-check and validate checkpoints. Sinc the network is capable of handling a finite number of nodes for validation, the minimum deposit will stand at 1,500 ETH which is equivalent to almost $1.1 million as per the current exchange rates.
The Casper FFG upgrade could practically render the traditional hardware mining completely obsolete. The current system doesn’t have a flaw if you look at it from far away, but when you observe some things, you will notice that the PoW system is the flaw itself. In Proof of Work system, the miners have to solve cryptographic riddles or puzzles, success in doing so will mine a block that will be awarded to the miner and be added to the blockchain.
These cryptographic puzzles are specifically designed such that they would require a very heavy system when it comes to the processing power. The more the processing power of the system, the higher the heat levels, the power usage, and chances of failure of parts. This is where you can notice the problem with Proof of Word: the miners who have their pockets lined up with their own, or their investors’ money can easily afford Application-specific IC (ASIC) chipsets that are like microprocessors, but highly-dedicated towards a particular task. This means that only the ones who can cough up a large amount of money are the one who can enjoy success in mining Etherium.
Casper FFG is designed to change all this. The PoS system deploys a method where validators are implemented to update the ledger through a voting system. Within the boundaries of this voting system, users (or stakers) can place deposits of the cryptocurrency and start validating blocks. Whenever a block comes up that the stakers think can be added to the blockchain, the users place bets on it and the block is tested in the chain. If the block is valid, it will be added to the chain and those who placed the bets will get rewards.