How does consensus work on the Casper Network?
The Casper Network uses a consensus mechanism called Proof of Stake (PoS).
This consensus mechanism is based on the idea that validators stake their coins in order to secure the network and validate transactions. In order to become a validator, users must stake a certain amount of coins. This stake is used as collateral for the validator’s actions.
If the validator acts maliciously or attempts to double spend, they will lose their stake. Once a validator has staked their coins, they can begin to validate transactions on the network. When a transaction is broadcasted, it is sent to all of the validators in the network.
The validators then check if the transaction is valid and if it follows all of the rules set by the network. If it does, then they will sign off on it and add it to the blockchain. The Casper Network also uses a reward system for its validators.
Validators are rewarded for correctly verifying transactions with newly minted coins from the network’s inflation rate. This reward system helps incentivize honest behavior and encourages more people to become validators on the network. Overall, Proof of Stake is an efficient and secure way for networks like Casper Network to reach consensus without relying on miners or other third parties.
It also allows users to earn rewards for participating in securing and verifying transactions on the network.
