Nova Research Institute | ETH 3.0 Representative: CasperLabs in-depth report

1.0 Project Introduction

 
 

 

1.1 Project overview

 

CasperLabs is a blockchain public chain based on Ethereum 3.0. It is a basic tool and facility for building a new digital world in the future. It is a faster, safer and more efficient POS blockchain. It has realized the POS upgrade of Ethereum 2.0 in advance. Casper fragmentation technology. CasperLabs uses a variety of technical means to achieve its goal as a basic tool for the blockchain in the digital economy era: a faster and more secure decentralized network.

 

 

 

1.2 Development

 

CasperLabs' Testnet test network was successfully released on March 31, 2020, and currently has more than 20 validators.

 

The CasperLabs mainnet is expected to go live in September this year, and the testnet is now complete. The latest Testnet release has become one of the most anticipated PoS+Pow equity proof networks in the industry.

 

 

2.0 Fundamental Token Distribution

 
 

 

2.1 Fundamentals

 

Token name: CLX
initial total issuance: 10 billion
initial circulation: about 20% in the first year of
mainnet launch. Pre-sale price: 0.01U
total network token supply: 10 billion


 

 

2.2 Staking overview and rewards

 

It must be bound to the network for 90 days (the “specified binding period”), and each stake certificate can be rotated and unbound according to the agreement verifier's waiting time (roughly equivalent to 1/13 of a week, after the specified binding period) Within 90 days) and achieve partial unbinding. Staking benefits include three aspects:

1) Initial income: 15% annualized income before the
mainnet launch 2) Pledge income: the token pledge income after the mainnet launch, within the first year, it is expected to be annualized at more than 15%;
3) Network handling fee: After the mainnet goes live, network fees will be allocated to verification nodes to maximize the revenue of unissued tokens.

 

2.3 Verifier participation process

 

All verifiers must pass a KYC/AML (identity authentication/anti-money laundering) check conducted by a third-party service provider. The verifier needs to run the software and bind to the Devnet testnet, and provide the infrastructure of the Testnet testnet.

 

2.4 Specific Token Allocation Table

 

Compared with other projects, CasperLabs (CLX) has a wide distribution scope, and the team only retains 8% , which will be unlocked in batches three years after the mainnet is launched Due to strict vesting period requirements, even in the early stages, the team always retains a small number of tokens in circulation.

 

 

 

3.0 Technology & Agreement 

 
 

 

CasperLabs has three characteristics: CasperLab Highway, a smart contract platform with a PoS mechanism, and a safe and feasible implementation of CBC Casper, that is, the Ethereum 3.0 architecture. CasperLabs Highway belongs to the Byzantine fault-tolerant consensus protocol, which provides the required high-level security protection for the permissionless chain.   

 

There is an impossible triangle in the development of blockchain technology: scalability, decentralization, and security cannot have both. CasperLab’s characteristic Highway can not only prove security (mainly based on the implementation of CBC Casper (correct-by-construction) and Casper Proof of Stake (PoS)), but also allow fragmentation and synchronization to achieve faster and more effective operation rates. And then achieve the effect of decentralized network operation.

 

 

Features 1. CasperLabs CBC Casper and Highway protocol

 

 

CasperLabs created the first CBC Casper implementation that proved to be safe and feasible, the proposed Ethereum 3.0 architecture. CasperLabs Highway belongs to the Byzantine fault-tolerant consensus protocol, which provides high-level security protection for non-permissioned chains. The name CasperLabs comes from using CBC-Casper as the starting point of the project. CasperLabs' technology is based on the POS CBC-Casper protocol designed by Ethereum Foundation researcher Vlad Zamfir. CBC Casper was originally one of the expansion plans of Ethereum.

 

In 2017, after Vitalik and Vlad proposed the initial technical parameters of CBC Casper, Vitalik decided not to fork Ethereum. Instead, he proposed an expansion plan of FFG Casper (that is, it took several years to gradually change from PoW to PoW). PoS). The developers of CasperLabs are optimistic about the original idea of ​​CBC Casper technology, so the project team raised 15 million US dollars through equity financing to develop this network, which is the CasperLabs project.

 

It should be emphasized that Casper is based on Ethereum 3.0 version, not Ethereum 2.0 version. It has been approved by Dr. Daniel Kane (he is a consultant of CasperLabs consensus algorithm and a core contributor to the Highway protocol, a well-known mathematician who owns Massachusetts Double Ph.D. degree from Science and Technology and Harvard. He has won almost all awards in mathematics. He is one of the top mathematicians in the United States. He has proposed an upgrade to the traditional CBC Casper. It is proof that no need to sacrifice decentralization or permission An active, scalable and efficient PoS system (mathematical proof method can be found on the official website of CasperLabs.)

 

Feature 2. Casper FFG technology

 

 

The most critical technical point of Casper is Casper FFG technology, the main function of this technology is

 

1) The finality of the
block 2) The liveness of the blockchain

Although Ethereum is the representative of Blockchain 2.0, there are many problems in the Ethereum network itself, such as insufficient scalability, high smart contract fees, founder team dominating its network development, and over-centralized governance model. For a long time, these problems have not been well resolved, and the community has differences on the change of the consensus agreement, and the community is divided. What everyone is talking about now is that the use of Casper FFG is not a pure PoS mechanism, but a hybrid of PoW+PoS. Because these two protocols have completely different hardware requirements, and because the infrastructure of the Ethereum network is designed for PoW, for Ethereum, the process of moving from PoW to PoS can only be achieved step by step. It is expected to take 3-5 years. In Ethereum 3.0, the consensus process only occurs on the beacon chain, and the Casper Friendly Finality Gadget (FFG) mechanism is used to help reach consensus. These two layers are both the key to the FFG mechanism and the two basic guarantees at the bottom of the blockchain.

 

Feature 3: User-Friendly, one-level agreement

 

 

Since CasperLabs started from CBC Caspe of Ethereum 3.0, it is a fully decentralized PoS, one-layer protocol. In addition to being friendly to Ethereum community developers, it is also a one-layer protocol that is friendly to all developers.

It should be understood that proposing and designing a public chain network may only require the wisdom of a few top developers, but to complete the entire project and grow stronger, the number of developers that the project itself can accept will greatly affect the development of the project and the community. To the decisive role. What many investors don't know is that not every blockchain project is friendly to all developers. There are special programming languages ​​for blockchain development. For example, Ethereum has a huge developer community. Ethereum uses Solidity. Although Solidity is very popular in the blockchain world, there are only about 20,000 developers who have mastered this programming language, which is relatively global. Of the 26 million developers within (including 7 million open source developers), the proportion is actually very small.

Compared with Ethereum, CasperLabs adopts open programming standards and hopes to attract more than 26 million developers worldwide. CasperLabs now supports Rust, Assembly, Script and all by providing efficient and high TPS chains and open programming standards. A language that can be compiled into WASM bytecode, plus its unique features, such as flexible payment codes, weighted secret keys, and GraphQL to view contract status, to attract developers and companies, and with xt.com time Over the course of time, it will support most of the most popular programming languages, which gives us the opportunity to see the emergence of a developer-friendly community for all developers, and thus promote the development of the entire blockchain industry.

In addition, it is worth mentioning that CasperLabs is the first-level protocol platform of the blockchain. What is the first-level protocol? It is like building large enterprise systems such as Didi and Meituan on the bottom layer of Tencent Map. Tencent Map is a first-layer protocol (Meituan and Didi are second-layer application protocols). Such a bottom layer is extremely safe, efficient and fast. Similarly, the blockchain also needs a powerful one-layer solution, which is exactly what CasperLabs does.

In addition to CasperLabs, I believe many investors have heard of Cosmos and Polkadot. Both Cosmos and Polkadot are two-tier cross-chain solutions. Both of these projects can become partners of CasperLabs because CasperLabs is a first-tier solution. And Gavin Wood (the initiator of the Polkadot project and the chairman of the Web3 Foundation)'s fund is a Series A investor of Casperlabs, which means that they are not in a competitive relationship, and the two are complementary.

 Other technical characteristics of CasperLabs can be summarized as follows: it may be the key public chain of POS in the future, adding nodes through the validator, and having Byzantine fault tolerance (BFT) and CBC consensus. In a public chain with similar functionality, we select 2 sharding technologies for comparison:

 

Near
1. Using FBFT internally to reach a consensus with high efficiency
2. Random Sharding + Resharding
3. Erasure code
4. Random number generator DRG

 

Harmony
1. Use FBFT internally to reach a consensus, high efficiency
2. Random sharding technology + re-sharding mechanism
3. Erasure code
4. DRG, VRF randomness

 

CasperLabs
1. Casper HIghway + FFG
2. The key to future POS on ETH
3. Validator joins the node
4. Byzantine Fault Tolerance (BFT) and CBC
5. One-layer agreement, User-friendly
 

 

 

 

4.0 Competitive Product Analysis

 
 

 

Chain Capital compared CasperLabs' similar public chains (similar in functionality) on the market, including sharding technology, and CasperLabs is currently at a relatively low level of valuation.

 

project

Casper

Near

Zilliqa

Tezos

ETH

Total market value (ten thousand dollars)

10,000

30,000

530,000

198,000

2,260,000

Circulation market value (ten thousand dollars)

2,000

9,000

4,985

190,000

2,030,000

Daily trading volume (ten thousand dollars)

No

No

1,040

30,000

1,010,000

Primary market valuation USD

100 million in 2020

 300 million in 2020

200-400 million in 2017

232 million in 2018

/

The highest value of the secondary market USD

No

No

0.15

4.19

1062

The current value of the secondary market USD

No

No

0.012

2.3

203

Investment agency

Hashkey,Arrington XRP Capital 等

Angelist founder Naval Ravikant, Coinbase, etc.

1kx, FBG, Polychain Capital, Bawei Capital, etc.

Deding Innovation Fund

/

(Collated by Chain Capital, data sourced from the Internet, as of the end of April 2020) 

 

5.0 community, social network and Github updates

 
 

 

5.1 Active participation in social networks (number of followers)

Twitter:3313
Facebook:1884
Telegram:2850

 

In addition to the more basic Twitter, Facebook, Telegram, and MParlikar community groups, the current number is 376

 

 

  

5.2 Blog and Github update status 

 

Blog updates are more serious and timely, and the quality of each article can be said to be meticulous. From the composition to the content, it reflects the team's quality control from PR.

 

 

Github updates are more frequent, with an average of about 3 days, about 2 times a week. It is very friendly to developers and those who join the community, and has timely feedback on the current situation of the team, the progress of the project and what matters to note. The following is an updated screenshot of Github:

 

 

 

In addition, for the enthusiasm of the community to join, the team often holds weekly community dialogues in the United States to increase stickiness. At present, lectures and interactions are mainly online.

    

 

6.0 core team

 

 

 

Mrinal Manohar, CEO of CasperLabs, is the head of a long-term hedge fund with approximately US$1 billion, specifically investing in technology, media, telecommunications and other fields. He also served as a private equity partner of Boston Bain Capital. He also holds a Master of Science degree from Carnegie Mellon, a traditional American school. Not only is he professional in technology, he also understands private equity and VC very well. He is a Wall Street talent with technology development and computer smart contracts.

 

Medha, CTO of CasperLabs, leads the entire technical team of CasperLabs. He has previously worked in large companies such as Adobe. Also worth mentioning is Daniel Kane, a consensus protocol consultant. He is a double Ph.D. from MIT and Harvard and can be said to be a well-known mathematician in the United States. Dr. Kane proved Vlad’s CBC Casper vision through mathematical proofs. The participation of such excellent mathematicians makes CasperLabs a solution that stands out in the blockchain field.

 

 

 

In addition to CasperLabs has a strong technical team, their business and marketing teams and the Wall Street board of directors behind the financial circle are also worthy of everyone's understanding. As investors, we can't just focus on technology. We also need to focus on the business of the team. Investors must think about the capital market, Tokeneconomics and how to get on the exchange.

 

Scott Walker, the director of CasperLabs, and Brock Pierce designed the first fundraising plan for Mastercoin in 2013, and raised a total of 5000 BTC. Since then, they have become angel investors in a series of projects such as ETH and EOS.

 

 

The chairman of the board of directors Terren Peizer is called the "Wall Street Chameleon", which adds a little mystery to the entire team and will attract more traditional Wall Street capital to CasperLabs. He is a Wall Street legend, and his life is completely reproduced in the 1990s of the famous Oscar film "Pretty Girl in Wind and Moon" starring Julia Roberts. Many gossip sources say that he himself is the prototype of the film. The former boss of Terren Peizer is the king of high-yield debt in the United States. Milken is the prototype of the movie "Wall Street" and a character written in the history of Wall Street. Those who are interested can expand reading: (https://en.m.wikipedia.org/wiki/Terren_Peizer)

 

 

7.0 Financing situation

 
 
 

In July 2019, Casper received US$14.5 million in Series A financing, including funds such as well-known investment institutions Hashkey and Arrington XRP Capital. In May 2020, Draper Goren Holm announced an equity investment in CasperLabs.

 

The main partners include Plug And Play, one of the world's top technology innovation accelerators and investment institutions, Chainlink, one of the highest growth projects in 2019, and CV Labs, a well-known Swiss blockchain organization.

 

 

 

8.0 Summary

Chain Capital view:

 

There are many originalities in technology. Casper FFG and Highway increase security and scalability. From a public chain perspective, they are similar to sharding technology and have technical advantages. But in terms of valuation, the price is within a reasonable valuation range.

 

 

It has been confirmed that the global social media has a good community building.
 

The team only retains 8% of the tokens, which are shared by more than 40 people, and distributed in 3 years, responsible to investors. At the same time, a variety of benefits such as token staking protect part of the rights and interests of investors.

 

Based on Ethereum 2.0, moving towards Ethereum 3.0, for the combination of POS+Pow, the infrastructure of the blockchain as a representative of the future public chain can be expected.
 

The founders and consultants are all on Wall Street, and they can bring traditional capital attention in the future, which can be considered a bonus.

 

【Interests】

Chain Capital participated in the early investment of CasperLabs
 

[Disclaimer]                                                     
This article only provides general reference information and does not constitute any investment advice of the organization and its members. The original information of the report comes from the Internet, and Chain Capital does not make any commitment to the accuracy or completeness of the information in the information. In any case, Chain Capital is not responsible for any organization or individual's actions based on this information. Please bear all the risks of making decisions based on this information. If you have any suggestions, criticisms and corrections are welcome.
 

[ChainCapital]
Founded in 2015, Chain Capital is a new type of digital fund company focusing on high-quality blockchain                                                 top project investment and professional digital asset management. It is committed to combining traditional financial wisdom with the application of new blockchain technologies. For mining, incubating and managing a batch of world-class classic investment projects, it has been rated as a TOP blockchain investment institution by many institutions. Member of Nova Club. The core team has many successful cases of blockchain industry investment:

 

 

 

 

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