Casper, Ether, and ICOs

The Ethereum has become the market standard for ICOs. It's turing complete programming languages such as Solidity have allowed for the easy creation of new ERC20 compliant tokens.

But Ethereum is so much more than a fundraising platform. If you have been experiencing the delays on Ethereum, you might not guess the culprit. It's Crypto Kitties - a digital cat breeding website. Yes, it's a thing.

So one website, has slowed down Ethereum to a crawl and points out some of the scaling issues the network has been facing as it seeks to meet the overwhelming demands from new users and use cases.

The Ethereum team has a plan, and its called Casper.

They are very close to launching.

This is a significant milestone in the Ethereum network’s growth. And we may see it in the next Metropolis fork.

Casper is switching Ethereum from Proof-of-Work to Proof-of-Stake.

The reason that you care about this development is that it will change everything! The supply of new Ether, the way contracts are validated, to mining new blocks are all going to under go change.

Here is a high level of how this shift will affect users. Currently, Ethereum rewards participants who solve cryptographic puzzles that validate transactions and create new blocks. The upcoming Casper implementation will have validators that take turns proposing and voting on the next block. Each validator vote will be weighed based on the size of deposit of Ether that they put at "stake." The bigger the stake, the more their vote counts. The validator will be rewarded with a dividend of ether collected from network fees.

It is hoped that Casper will reduce the risk of centralization, cut energy cost, and increase the speed of the network.

It is also believed that Casper will reduce the size of reward for each block. Between less new Ether and validation occurring through holding Ether in a deposit. This means less new Ether in circulation. And may drive up the cost of Ether while driving down the cost to execute contracts on the Ethereum network.


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