Casper is designed to implement proof-of-stake (PoS) into the Ethereum network.
What is Casper (Ethereum)?
Ethereum’s current consensus mechanism, Proof-of-Work (PoW), is being replaced by a better version of Proof-of-Stake (PoS).
PoW relies on computational processing power, but it has a number of flaws that need to be addressed. Coin holders’ deposits are used to achieve consensus in the proof-of-work (PoW) consensus algorithm.
Is there a difference between PoW and PoS ?
Proof-of-Work (PoW) is based on a competition between miners to solve a difficult cryptographic puzzle. Create a new block on the blockchain and get rewarded for solving the puzzle first.
It’s a different story when it comes to Proof of Stake (PoS), where instead of competing against each other, miners are required to put some of their coins up as collateral.
The stake weight of a validator determines who is randomly selected to validate the block (how many coins he has staked).