Ethereum: The Story of Casper the Unfriendly Ghost!
A lot of the industry is treating this as new but it has been on the Ethereum team’s roadmap, including this post from Vlad back in 2015. In plain English, Casper the Friendly Ghost as they call it is the roadmap and implementation that the Ethereum team is beginning to test. It is the process of how they will switch their network from PoW (mining) to PoS (Proof of Stake). I will admit I am not envious of how they will go about this task and it is a big job, but the implementation has me shaking my head. Before anyone cries foul or FUD, I am speaking from an IT and business perspective because the security issues in the crypto world are puzzling to me.
A lot of the key features of this Casper protocol are for example how they plan to “penalize bad nodes” or nodes who misbehave, broadcast false/fake transactions/confirmations etc.. Why should this be possible in the first place? No one should be able to run a node if they aren’t trustworthy but there is no basis on this elevated privilege in cryptocurrency networks like Ethereum. Strangers off the street are being trusted to be honest and not mess with the network. That’s not how business or the world works, nor is it how IT works if you want to stay safe and stay operating.
The craziest part that “has me shaking my head” is the fact that “Validator Nodes” which are essentially “bonded” by depositing at least 1500 ETH which the Ethereum network and team controls. The onus is then on the node runner to secure the node, keep it running reliably, preventing DDOS attacks and risks that the actions of other nodes could cost you money. Make no doubt about it, the team is clear you could lose some or all of your money through no fault of your own as a Validator Node.
But let’s back up here, this is an improvement over the current issues but is it solving anything? At first mining worked to secure the network and stop centralization. But here we are today where big players with big money and ASICs have centralized most cryptocurrencies, something that wasn’t supposed to happen. It is clear the small players will hardly play any role in the network of Ethereum with this change to Casper.
Getting back to the security aspect. What is to stop extremely wealthy people who don’t care about money or have more than enough money to run the majority of Validator Nodes? Nothing stops them from losing all of their money and they don’t have to care about it if they could setup a one-time heist to fool enough users or even a single user for a single targeted transaction. Massive bank-heist type frauds would be possible with collusion and owning enough Validator Nodes, and clearly only the wealthy could pull this off. It would be immoral but not illegal and I would say the Casper system, with bonded node validators is enabling and encouraging it.
Casper is well-intentioned but to me it shows that the cryptocurrency world is far out of touch with basic norms of computing and IT security. There has got to be a better way that prevents this in the first place.
Ethereum and virtually all coins are already centralized from the start. This is and continues to be the case since the developers must be trusted whether you like it or not. Why don’t some teams just centralize under a trustworthy community rather than depending on the honesty and integrity of strangers, or worse inviting only the wealthy to centralize and participate?
One coin I feel that meets my criteria for a secure, functional, fast and affordable coin for both users and business is from the anonymous Sonajin Team (or Team Satoshi 2.0 if I’m correct). I believe the coin will revolutionize cryptocurrency and will be the best poised for mass adoption. Naturally I’m going to add that I have bought into it and have a stake, both for my own interest but also with the expectation that it will be a historically smart choice to own some XSJ.