Deterministic: The Highway Protocol is a deterministic consensus mechanism. Once consensus is reached over a block, all transactions are immediately executed, i.e. transaction execution is final and irreversible. This differentiates Casper from probabilistic networks that require more time to achieve finality, with the risk that transactions are reversed. Deterministic finality provides absolute certainty, thereby enabling uncompromising security.
Serial block creation: The fundamental unit of time within the Highway consensus mechanism is an era. Each era is split into a set of rounds, within each round a leader is chosen and granted permission to propose a new block. Once sufficient block finality signatures are collated, the proposed block is considered finalized and ready for immediate execution.
Confidence in execution: Because the protocol emphasizes determinism, meaning that the process and outcome of reaching consensus is predictable. This is an essential prerequisite to building serious applications upon the platform.
The Casper public blockchain has demonstrated resilience within a hostile environment. Uninterrupted operations ensure that transactions are processed reliably without delays.
Low gas fees that are easy to calculate: The fee model on Casper has been set to enable predictive insight into the gas fees required to ensure successful transactions.
Gas refunds: Casper refunds unspent gas to the user, ensuring the lowest possible costs to access the computational power and security of the Casper blockchain.
No hidden fees: There are no hidden fees for maintaining accounts on Casper, which means users don't incur additional costs simply for holding and managing their assets.
The Casper ecosystem has developed a comprehensive toolkit that empowers builders to create their applications with ease. Shortening development time and reducing cost to build, including:
Smart contracts are secured by a fine-grained, native access control permissioning. This makes Casper a highly secure blockchain environment, and therefore one one where complex financial mechanisms can be built. Casper's smart contracts also offer flexibility and as they allow for native upgradability.
The key features of Casper smart contracts include;
Casper’s token standards are designed for high utility and increased functionality, facilitating quick and efficient tokenization. Whether for NFTs or hybrid tokens, our standards support diverse financial mechanisms and use cases.
The key features of Casper tokenized standards include;
We believe the next generation of financial systems, economic transactions, and any type of value exchange will be made possible by decentralization, transparency, and the adoption of trustless systems. Casper’s validator network and node decentralization ensure that it is secure and that decision-making power is distributed across the network. Staking CSPR allows individuals and organizations to participate in the validator network and contribute to the security and decentralization of the network.
This Proof-of-Stake (PoS) architecture not only allows for faster transaction processing and lower energy consumption but also ensures that the network is decentralized and resistant to the centralization of power. As an open, permissionless, PoS network, Casper is committed to building a decentralized future. By providing a highly decentralized infrastructure and an accessible base layer for builders and developers to scale and thrive, Casper is paving the way for a decentralized future.
Zero-knowledge proofs (ZKPs) are cutting-edge technology that has the potential to revolutionize the way blockchains operate. As a Layer 1 blockchain, Casper is constantly looking for ways to improve its security, scalability, and privacy. It’s the reason why we are taking ZK Proofs seriously as implementation would be a major step in achieving these goals and positioning our blockchain as a future-proof platform for developers and businesses to build upon.
First, let's define what a zero-knowledge proof is. Essentially, it's a method of proving the validity of a statement without revealing any additional information beyond the statement itself. In the context of a blockchain, this means that a user can prove they own a certain asset, for example, without revealing their identity or the exact amount of the asset they own. This is achieved through the use of complex mathematical algorithms that allow for the verification of information without the need for revealing the actual data.
The significance of ZKPs in the blockchain world cannot be overstated. One of the most significant benefits is the increase in privacy they provide. As mentioned, with ZKPs, transactions can be verified without revealing the identity of the parties involved. Additionally, by allowing for the verification of information without revealing the actual data, ZKPs can make it much harder for attackers to target the network. This allows for greater privacy and security for users and can open up new opportunities for businesses that value the protection of their clients' personal information, a major need, especially for enterprise businesses and companies, or governments that need to protect personal or public sensitive information.
We’re excited that the community is also passionate about Zero-Knowledge and has already provided some inspiration for developers to explore. The Odra project is one such example that has open-sourced their code to encourage further exploration around ZKPs on Casper. Devs can dive deeper here.
Odra.Dev The implementation of ZKPs on Casper would be a major step forward providing greater privacy, scalability, and security for our users and opening up new opportunities for businesses to build upon our platform. Casper’s commitment to open-source technologies aims to foster a more inclusive and collaborative environment for innovation. We are excited to see the impact that ZKPs will have on our blockchain and the wider blockchain community. As we move towards a more privacy-centric and secure future, Casper is proud to be at the forefront of this technological advancement.
As a Layer 1 blockchain, Casper is constantly exploring new ways to empower developers and businesses to build decentralized applications and create new economic opportunities. One area where we see a lot of potential is tokenization, which can enable a wide range of use cases and bring significant benefits to businesses and underserved communities.
Tokenization is the process of creating digital assets, or tokens, that can represent a wide range of physical and virtual assets. This can include everything from real estate, art, and collectibles to financial instruments, loyalty points, and digital identities. By tokenizing these assets, they can be easily bought, sold, and traded on the blockchain, creating a more efficient and secure market for these assets.
One of the most significant benefits of tokenization is the ability to fractionalize assets. This means that users can now buy a fraction of the asset instead of purchasing an entire asset. This can make it more affordable for individuals to invest in these assets and open up new opportunities for businesses to raise capital.
Tokenization allows self-sustaining micro-economies to form around a specific asset or a group of assets. For example, a real estate developer could tokenize a building and create an economy where tokens can be used to pay for rent, maintenance, and even future renovations. This can create new opportunities for businesses and investors to participate in these micro-economies and share in the appreciation of the underlying assets. Tokenization can also be used to represent secure ownership of digital assets which we will discuss in greater detail later in this article.
Creating digital assets that can be traded on the blockchain makes it possible to create a decentralized market for these assets. This means there is no central point of control or failure, which can make the market more resilient and secure. Decentralization also allows for greater accessibility to these markets, as anyone with an internet connection can participate.
Underserved communities can also benefit significantly from tokenization. For example, tokenizing assets in underdeveloped areas can attract capital and create new economic opportunities. Additionally, tokenizing assets such as real estate or other cash flow producing assets can make it more affordable for low-income individuals to invest in these assets, which can help create wealth and improve their economic situation.
Tokenization has the potential to create new economic opportunities and bring significant benefits to both businesses and underserved communities. By fractionalizing assets, creating micro-economies, and allowing for decentralization, tokenization can open up new opportunities for investment, growth, and development. As a Layer 1 blockchain, Casper aims to enable this tokenized economy by providing a secure and efficient platform for developers and businesses to build decentralized applications and create new economic opportunities.
Casper is not just about decentralized token economy, it's also about providing a solid foundation for smart financial contracts. We believe that all assets including financial assets will be tokenized, this includes bonds, loans, futures, swaps, and other on and off-balance sheet instruments. The efficiency gains of DLT and Blockchain-enabled systems in comparison to the existing rails and plumbing in finance and capital markets are just too high not to switch
However, efficiency, security, and transparency of these new infrastructures will only be achieved if the financial instruments which live in these new environments and move on these new rails are well defined. It is a precondition of success that financial contracts are machine-readable, machine-executable, verifiable, and thus auditable.
This is why Casper is leading the way in the implementation of open-source smart financial contract standards, such as the implementation of the open-source ACTUS standard, which provides a data model and consistent algorithmic definitions for financial contracts. The ACTUS standard can help to support the adoption of blockchain technology in the financial industry, by providing a common language and framework for financial contracts. With this approach, businesses can be more confident in using blockchain technology to create financial products, which will foster a more vibrant ecosystem and faster adoption.
On-chain, cryptographically secured financial tools possess the potential to disrupt financial services and capital markets. Many expect the tokenized financial asset industry to transform the future of world finance. With that being said, the current way tokenized asset providers digitize assets has a lot of shortcomings. The absence of a unified standard that defines cash flows in tokenized assets is arguably the key limitation. Without such standardization, it is impossible for tokenized financial instruments to be interoperable. Beyond standardizing cash flows in tokenized assets, the ACTUS standard will also enable future reporting and regulatory requirements which are forward-looking.
Imagine a world where financial transactions are conducted with the same transparency and efficiency as sending an email. This is the world that Casper, in combination with the ACTUS standard, aims to create. By enabling traditional capital markets with blockchains, we can revolutionize how financial transactions are conducted and how financial portfolios will be managed, traded, and securitized. This will open up new opportunities for businesses and underserved communities.
But what exactly is the ACTUS standard, and how does it fit into this vision? ACTUS is a set of open-source financial contract templates that can be used to represent financial contracts on the blockchain. This includes everything from bonds to annuities, to futures and derivatives. By using these standardized templates, businesses can create on-chain financial contracts that are transparent, auditable, easily verifiable, and enforceable.
The ACTUS standard accurately and automatically defines the terms of financial agreements, without the need for expensive and slow scanned or paper records. Casper takes pride in pioneering these solutions and enabling projects like Nucleus Finance - a financial technology provider, in their mission to revolutionize Capital Markets. Implementing the open ACTUS standard with smart financial contracts on Casper is a powerful approach to realize this transformation.
The benefits of using the Casper blockchain in combination with ACTUS are many. One of the most significant is financial transactions' increased efficiency and transparency. By moving these transactions onto the blockchain, businesses can streamline the process and solve critical problems in finance such as reconciliation, valuation, and systemic risk, thus reducing the need for intermediaries. This can save time and money while reducing the risk of errors and fraud.
Another benefit is the ability to open up new opportunities for businesses and underserved communities. By making financial assets more transparent and accessible, companies can attract new investors and customers. This can help to create jobs and stimulate economic growth. Additionally, by making these transactions more accessible to underserved communities, we can help to create new opportunities for wealth creation and financial inclusion.
But the benefits of this technology go beyond just the local communities. We can create a more efficient and transparent global financial system by implementing an algorithmic standard for financial contracts. This can reduce the risk of financial crises and promote economic stability, ultimately benefiting all businesses and individuals around the globe.
Some might say that the traditional capital markets are too entrenched and resistant to change, but the reality is that technology is constantly pushing us forward. Just as the internet transformed how we communicate and share information, the Casper blockchain and ACTUS can change the future of finance. And like the internet, this technology has the power to create new opportunities, promote inclusion and help build a more prosperous future for all.
Casper Labs can provide more ways for teams to implement solutions for their business or organization. To learn more about how to leverage smart financial contracts, visit Casper Labs here.
The journey toward mainstream adoption of new technology can be a challenging one, but with Casper, the path is clear. Casper’s mission is focused on a long-term approach as Casper was specifically designed with a decentralized, user-friendly, and modular architecture, allowing it to adapt to the continuously evolving needs of its users and to remain a reliable and effective solution in the future. Casper is not just providing a solid foundation for developers, enthusiasts, and visionaries, it is becoming a catalyst for their innovation, propelling them to bring their most ambitious projects to life.
Ralf Kubli
Board Member, Casper Association
