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3. Advanced Course

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  1. 1. What is Taproot?
  2. 2. Blockchain bridges – what are they?
  3. 3. What is Ethereum Plasma?
  4. 4. What is Ethereum Casper?
  5. 5. What is Zk-SNARK and Zk-STARK? 
  6. 6. What is Selfish Mining? 
  7. 7. What is spoofing in the cryptocurrency market? 
  8. 8. Schnorr signatures - what are they? 
  9. 9. MimbleWimble - what is it? 
  10. 10. What is digital property rights in NFT?
  11. 11. What are ETFs and what role do they play in the cryptocurrency market? 
  12. 12. How to verify a cryptocurrency project – cryptocurrency tokenomics 
  13. 13. What is the 51% attack on blockchain?
  14. 14. What is DAO, and how does it work?
  15. 15. Zero-knowledge proof – a protocol that respects privacy 
  16. 16. What is EOSREX?
  17. 17. What is Proof of Elapsed Time (PoET)?
  18. 18. Mirror Protocol – what it is? 
  19. 19. What are synthetic assets? 
  20. 20. How to create your own NFT? 
  21. 21. Definition of DeFi, and what are its liquidations?
  22. 22. New identity system - Polygon ID
  23. 23. Ethereum Foundation and the Scroll protocol - what is it?
  24. 24. What is Byzantine fault tolerance in blockchain technology?
  25. 25. Scalability of blockchain technology - what is it?
  26. 26. Interchain Security - new Cosmos (ATOM) protocol
  27. 27. Coin Mixing vs. Coin Join - definition, opportunities, and threats
  28. 28. What is Ethereum Virtual Machine (EVM) and how does it work?
  29. 29. Soulbound Tokens - what are they, and how do they work?
  30. 30. Definition of LIDO - what is it?
  31. 31. What are Threshold Signatures, and how do they work?
  32. 32. Blockchain technology and cyberattacks.
  33. 33. Bitcoin script - what it is, and what you should know about it.
  34. 34. What is zkEVM, and what are its basic features?
  35. 35. Do confidential transactions on blockchain exist? What is a Confidential Transaction?
  36. 36. Algorithmic stablecoins - everything you should know about them.
  37. 37. Polygon Zk Rollups ZKP - what should you know about it?
  38. 38. What is Web3 Infura?
  39. 39. Mantle - Ethereum L2 scalability - how does it work?
  40. 40. What is the NEAR Rainbow Bridge?
  41. 41. Liquid Staking Ethereum and LSD tokens. What do you need to know about it?
  42. 42. Top 10 blockchain oracles. How do they work? How do they differ?
  43. 43. What are Web3.js and Ether.js? What are the main differences between them?
  44. 44. What is StarkWare, and recursive validity proofs
  45. 45. Quant Network: scalability of the future
  46. 46. Polygon zkEVM - everything you need to know
  47. 47. What is Optimism (OP), and how do its roll-ups work?
  48. 48. What are RPC nodes, and how do they work?
  49. 49. SEI Network: everything you need to know about the Tier 1 solution for DeFi
  50. 50. Types of Proof-of-Stake Consensus Mechanisms: DPoS, LPoS and BPoS
  51. 51. Bedrock: the epileptic curve that ensures security!
  52. 52. What is Tendermint, and how does it work?
  53. 53. Pantos: how to solve the problem of token transfer between blockchains?
  54. 54. What is asymmetric encryption?
  55. 55. Base-58 Function in Cryptocurrencies
  56. 56. What Is the Nostr Protocol and How Does It Work?
  57. 57. What Is the XDAI Bridge and How Does It Work?
  58. 58. Solidity vs. Rust: What Are the Differences Between These Programming Languages?
  59. 59. What Is a Real-Time Operating System (RTOS)?
  60. 60. What Is the Ethereum Rinkeby Testnet and How Does It Work?
  61. 61. What Is Probabilistic Encryption?
  62. 62. What is a Pinata in Web 3? We explain!
  63. 63. What Is EIP-4337? Will Ethereum Account Abstraction Change Web3 Forever?
  64. 64. What are smart contract audits? Which companies are involved?
  65. 65. How does the AirGapped wallet work?
  66. 66. What is proto-danksharding (EIP-4844) on Ethereum?
  67. 67. What is decentralised storage and how does it work?
  68. 68. How to Recover Cryptocurrencies Sent to the Wrong Address or Network: A Practical Guide
  69. 69. MPC Wallet and Multilateral Computing: Innovative Technology for Privacy and Security
  70. 70. Threshold signature in cryptography: an advanced signing technique!
  71. 71. Vanity address in cryptocurrencies: what is it and what are its characteristics?
  72. 72. Reentrancy Attack on smart contracts: a threat to blockchain security!
  73. 73. Slither: a static analyser for smart contracts!
  74. 74. Sandwich Attack at DeFi: explanation and risks!
  75. 75. Blockchain RPC for Web3: A key technology in the world of decentralized finance!
  76. 76. Re-staking: the benefits of re-posting in staking!
  77. 77. Base: Evolving cryptocurrency transactions with a tier-2 solution from Coinbase
  78. 78. IPFS: A new era of decentralized data storage
Lesson 4 of 78
In Progress

4. What is Ethereum Casper?

Casper is a project that aims to implement PoS into the Ethereum ecosystem. We will talk about what it is and how it works in today’s lesson. So – pens in hand and welcome to the reading. 

PoW vs Pos 

Before we move on to explain the definition of Ethereum Casper, we need to remind ourselves of the basic differences between the PoS mechanism and PoW. We know that both algorithms are the most commonly used consensus mechanisms. The main idea of PoW is that miners compete to solve a complex cryptographic puzzle. The winner creates a new block on the blockchain and receives a reward. 

In PoS, on the other hand, miners ‘block‘ their cryptocurrencies as stakes. In this mechanism, validators approve the block, depending on the weight of its stakes. 

Ethereum Casper – definition 

Ethereum Casper is a hard fork of Ethereum that solves several key issues between the network and its mass adoption. It aims to make the ecosystem more scalable, combat centralisation and change the PoS protocol to PoW. Ultimately, Casper is expected to transform the current version of Ethereum, to update 2.0. It has been given the name  ‘Serenity’. 

Ethereum Casper comes in two versions: 

Casper the Friendly Finality Gadget (FFG) – will be used to transition from PoW to PoS consensus. Basically, we can say that it is a hybrid of the two mechanisms. PoW is used to create new blocks, and Casper the FFG comes in the form of smart contracts overlaid on the blockchain. The aim of such a procedure is to make a smooth transition to PoS. Casper the Friendly Gost: Correct by Cinstruction (CBC) – its implementation is being handled by developer Vlad Zamfir. CBC Casper is a security oracle and tunes the PoS protocol. 

Casper will be implemented in two phases: 

Phase 0: Beacon Chain. It will be a new blockchain (sidechain), running in parallel to the Ethereum master chain. In this phase, the PoS concept will be introduced to the Ethereum blockchain. The Beacon Chain will be tasked with managing and coordinating validators without the need to create smart contracts or have a user account.  

Phase 1: Sharding. This phase will split the Ethereum network into multiple shards. This will provide tremendous scalability as each shard will process transactions in parallel. Recall that low scalability is Ethereum’s biggest problem facing the ecosystem. 

Casper protocol – advantages 

It is environmentally friendly. The PoS system validates transactions faster, easier, and without using a huge amount of computing power. As a result, miners do not consume as much energy as with PoW. This results in lower power consumption costs and a much lower environmental impact. 

Greater scalability – The Casper protocol uses a different validation method. It allows more transactions to be processed per second. As a result, they are faster and cheaper. 

Energy efficiency – in the long term, this will increase the amount of Ether in circulation. 

Ethereum Casper will eliminate the threatening centralisation of Ethereum mining.

∙ It will reduce the risk of attack 51%. 

∙ Validators will act in the best interests of the network. 

∙ Will reduce the issuance of new coins. 

Summary 

The Casper hard fork is a complex and significant update. Moreover, it affects one of the largest and most recognisable cryptocurrencies in the world. The change in consensus from PoW to PoS is also a big deal for Ethereum as a whole. So we look forward to seeing how it all unfolds, among other things, in the case of cryptocurrency exchanges.

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