What Is Kaspa (KAS) Blockchain?
05 February 2024 - 6:00AM
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The Kaspa (KAS) blockchain is a decentralized, open-source, and
scalable Layer-1 solution often referred to as “Bitcoin 2.0” or
“the next Bitcoin.” However, Kaspa is unique in its own way despite
functioning very similarly to Bitcoin. Just like Bitcoin, Kaspa is
a proof of work (PoW) cryptocurrency, but unlike other traditional
blockchains, Kaspa implemented the GHOSTDAG protocol. This protocol
is unique in the fact that it does not have orphan blocks created
in parallel. Rather, it allows them to coexist and orders them in
consensus. This makes Kaspa the first of its kind to do this, with
the blockDAG (Block Directed Acyclic Graph) protocol being a
generalization of Nakamoto’s consensus. The Founder And The Team
Behind The Kaspa (KAS) Network The founder of Kaspa is Yonatan
Sompolinsky, a Ph.D. in Computer Science at Havard University and a
member of the Maximal extractable value (MEV) research team. He was
also in Ethereum’s whitepaper and rumored to be in Ripple’s
whitepaper as well. Related Reading: How To Buy And Trade BRC-20
Tokens On The Bitcoin Network Sompolinsky had direct input in
creating Ethereum’s technology design, having designed the GHOSTDAG
protocol earlier. Interestingly, the founder’s 2013 paper on the
GHOSTDAG protocol is cited in Ethereum’s whitepaper. The
development team is made up of very talented individuals such as
Cryptography Researcher Elichai Turkel, Doctoral student Shai
Wyborski, Developer Ori Newman, Master of Computer Science Michael
Sutton, and Developer Mike Zak. They have all contributed to the
implementation and ongoing development of the Kaspa blockchain
network. Differences And Similarities Between Kaspa (KAS) And
Bitcoin (BTC) At the very base of its technology, Kaspa is very
similar to the Bitcoin network in the way it’s structured. Some of
these similarities are outlined below: Utility: Bitcoin is a Layer
1 blockchain solution that functions as a store of value, often
referred to as digital gold, functioning as a peer-to-peer
cryptocurrency. Likewise, Kaspa is a Layer 1 solution purported to
be a store of value and functioning as peer-to-peer cash. Related
Reading: What Are The Top 8 DeFi And Web3 Wallets To Use In Crypto?
Limited Total supply: Bitcoin has a maximum total supply of 21
million BTC to be ever mined, meaning new coins can never be
created after all of these coins are mined. In a similar fashion,
Kaspa has a maximum total supply of 28.7 billion coins, with a
little over 22.5 billion in circulation. Halving Events: Both
Kaspa and Bitcoin undergo halving, which slashes the block rewards
for miners in half. However, while Bitcoin undergoes a halving
event every four years, Kaspa uses a Chromatic Halving Schedule,
“meaning that rewards smoothly decrease every month in a
quantitative manner that results in a 50% emission reduction per
annum,” according to its website. Decentralization/Proof of
work: Both blockchains employ a decentralized proof of work
mechanism, meaning that the network is secured by miners who solve
complex mathematical equations to mine blocks and confirm
transactions. Unfortunately, this also means that both networks are
energy-intensive and require a lot of power to run. One major
difference between both networks is that Kaspa solves the issue of
scalability that continues to plague Bitcoin. This means that while
both networks use a proof of work mechanism, Kaspa is able to carry
out transactions at a faster rate as well as cheaper fees. How Does
Kaspa The Blockchain Solve Trilemma Issues? The Blockchain Trilemma
refers to the three critical aspects of blockchain technology,
which are security, scalability, and decentralization. This
trilemma continues to plague leading blockchains such as Bitcoin
and Ethereum, and they continue to battle these issues. This is
because, in order to ensure security and decentralization,
something had to give, and in both cases, it was scalability.
Related Reading: Crypto After Death: How Do You Pass On Your
Investments To Your Loved Ones? However, Kaspa, on the other hand,
is one of the few blockchains to solve the blockchain trilemma, as
it is decentralized, scalable, and secured. It solves the
blockchain trilemma issues through its integration of proof of work
(PoW) and the blockDAG structure. Image source How Does The Kaspa
GhostDAG Protocol Work? Most blockchains that digitally process
transactions do so in the form of blocks, hence the name
blockchain. Kaspa, however, deviates from this because it does not
store digital transactions in blocks. Instead, it does so using a
complex mathematical structure called a DAG (Directed Acyclic
Graph). In a DAG (Directed Acyclic Graph), vertices are
present instead of blocks. So, instead of referring to different
units as forming blocks, each different vertice forms edges when
connected to each other. The blockchain then relies on present
transactions to validate and confirm transactions that come after
it. Kaspa does not discard previous blocks of information;
therefore, it is more secure and scalable. Its mining relies on
kHeavyHash, which is a form of optical mining algorithm that is
energy efficient and works well with mining equipment such as FPGAs
and GPUs. Prominent Features Of Kaspa (KAS) Efficient Proof of
Wook: Kaspa is a one-of-a-kind blockchain that has managed to
maintain its Proof of Work mechanism while also solving the
blockchain trilemma. To put this in perspective, blockchains such
as Ethereum have had to move from Proof of Work (PoW) to Proof of
Stake (PoS) in an effort to solve their scalability issues and make
them faster. However, since Kaspa already solved the
blockchain trilemma, this makes it highly scalable while
maintaining a truly decentralized system. Its utilization of the
optical-mining-ready kHeavyHash algorithm also helps to ensure the
consensus and security of the network. Related Reading: How to Buy,
Sell, and Trade ERC-20 Tokens on the Ethereum Network Instant
Transaction Confirmation: Kaspa was designed to be cheaper and
faster than Bitcoin, where full confirmation of a transaction takes
an average of 10 seconds, with each transaction visible to the
network in one second. This is significant when compared to
Bitcoin, which takes an average of 10 minutes to confirm a
transaction. Security: When it comes to security, Kaspa did not
just employ the same security principles and methodology as
Bitcoin, it took it a step further as it replaced the SHA-256 PoW
encryption with kHeavyHash, while inheriting all the security
properties of SHA-256. Thus, its network is still secured by a
robust network of decentralized volunteers (miners) who validate
and sign transactions just like Bitcoin. Cheaper Fees: Not only
does the Kaspa Blockchain network confirm transactions fast, but it
is also significantly cheaper than Bitcoin. This is because the
blockDAG network generates multiple blocks every second for posting
transactions to the ledger, whereas Bitcoin generates one block
every 10 minutes. Transaction fees on Kaspa cost less than a cent,
while transaction fees on Bitcoin cost an average of $4 at the time
of this publication. Scalability: Kaspa solves scalability issues
with its blockDAG network’s ability to generate and confirm
multiple blocks per second, as mentioned above. But perhaps the
most interesting part of what Kaspa does is that it is able to
confirm so many blocks (vertices) per second without altering or
giving up its decentralized nature. What Is KAS Coin And What Are
Its Uses? KAS coin is the native token of the Kaspa blockchain,
whose main objective is to power the whole network. It is used to
pay for transaction fees and other forms of developer’s fees, and
it is also used as an incentive to reward miners. Its block rates
are rapid and promise swift rewards, as well as offering profitable
mining with lower hash rate requirements compared to Bitcoin. The
Tokenomics of Kaspa (KAS) Kaspa’s native cryptocurrency, KAS, has a
maximum or total supply of 28.7 billion coins that are not
pre-mined. This means all of the tokens in circulation have been
free-mined by miners on the blockchain. It has a circulating supply
of 22.5 billion at the time of publication, and estimates are that
with the current halving model, the last KAS coin will be mined in
2037. Related Reading: How To Mine Bitcoin And Crypto | Guide
The Kaspa network utilizes an open crowdfunding and voting
governance model, which means that KAS holders can contribute to
the network for development, marketing initiatives, education,
etc. This sense of shared responsibility and ownership
motivates the community to come together and work toward collective
goals. KAS Price History And Progress Kaspa launched its
mainnet along with its token two years ago, on November 7, 2021.
Initially, the price of its native token, KAS, remained stagnant
until July 2022, when it pumped from $0.0001840 to $0.0005890. It
then traded sideways for months before going on another rally,
triggering a 694% increase in price. Related Reading: When Is the
Next BTC Halving Date? Bitcoin Halving Guide Following this, the
KAS price rose to almost $0.01 per coin in just a year after its
launch in November 2022. The price dipped a bit and started off
trading 2023 with $0.005278 per coin. KAS would then go on to hit a
new all-time high of $0.154 in November 2023, exactly two years
from the month it launched. Kaspa (KAS) is up 61,331% since its
all-time low of $0.00017105 on May 26, 2022, according to
Coingecko. This is significant because the surge to its new
all-time highs took place during a bitter bear market, causing the
coin to outperform the rest of the crypto market. This immense
growth in such a short time has led to some of Kaspa’s investors
referring to it as ‘Bitcoin 2.0’ or ‘The next Bitcoin.’ Its
similarities with Bitcoin have also fueled the belief that it is
the next Bitcoin. With a market cap of $2.38 billion, Kaspa is
currently the 38th-largest cryptocurrency in the space and the
7th-largest Proof of Work (PoW) blockchain. Conclusion Kaspa (KAS)
solving the blockchain trilemma with the ability to be scalable and
still be decentralized gives it an edge over blockchains such as
Bitcoin. Its native KAS coin also has important use cases like
powering the entire Kaspa blockchain protocol and being used for
transaction fees. This ensures that the coin is always in demand as
the Kaspa network usage grows. Related Reading: Learn How To Trade
Bitcoin Additionally, features like fast transactions, top-notch
security due to its encryption with kHeavyHash, and a robust
network of decentralized volunteers (miners) who validate and sign
transactions make it an appealing choice for investors looking for
an alternative to Bitcoin while enjoying the security and
decentralization of Bitcoin. Featured image from IQ.wiki
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