Casper FFG

Casper FFG, or the Friendly Finality Gadget, is a consensus mechanism developed for Ethereum to provide deterministic finality. It acts as an overlay on top of the existing proof of work or proof of stake mechanism to finalize blocks.

Casper FFG works by requiring validators to vote on checkpoints, which are specific blocks in the chain. Once a supermajority of validators agrees on a checkpoint, it is considered finalized and cannot be reverted.

This significantly reduces the risk of chain reorganizations, which is vital for the stability of derivative markets. It allows users and applications to rely on the state of the chain with absolute certainty.

Casper FFG is a prime example of a finality gadget that enhances the security and reliability of a blockchain. By introducing clear checkpoints, it provides a stable foundation for complex financial transactions and smart contract execution.