Kaspa is a cryptocurrency project founded in 2021 to create a global payment system with fast and secure transactions. The project utilizes innovative technologies like GhostDAG and a secondary “Fiber” network for rapid confirmations and increased throughput, operating on a decentralized, open-source, and scalable Layer-1 solution.
We explore Kaspa’s vital features, delving into its potential to address scalability concerns in traditional blockchains.
What is Kaspa?
Currently making waves in the crypto world, Kaspa is a groundbreaking Layer-1 solution. It is a decentralized, open-source solution that provides instant transaction confirmation and a user-friendly developer experience.
Working differently from the traditional blockchain solutions, Kaspa leverages the innovative GHOSTDAG protocol, a proof-of-work (PoW) consensus mechanism that paves the way for parallel blocks to co-exist in harmony. This fantastic approach sets Kaspa apart from its competitors, as it offers high block rates without compromising security.
Besides, Kaspa is the fastest PoW blockchain, mining about 200 transactions in a single block every second and confirming transactions in under 10 seconds. Instead of measuring transactions per second (TPS), they compare it to a librarian shelving book, aim to achieve 32 blocks per second (BPS) and look forward to 100 BPS by migrating the code to Rust.
Yonatan Sompolinsky is the mind behind Kaspa, a stalwart in the crypto ecosystem. He envisions the creation of a scalable Layer-1 solution that adheres to the principles of the Nakamoto Consensus, driving him to create Kaspa.
How Does Kaspa Work?
The Kaspa ecosystem is mainly led through a community-driven ethos and innovative technology. The project is open-source with no central governance, following in the footsteps of renowned coins like Bitcoin, Litecoin, and Monero.
Kaspa aims at increasing transaction speed and scalability by using larger blocks, a secondary “Fiber” network, and the GHOSTDAG protocol.
- Blockchain Structure: Kaspa’s decentralized ledger records transactions in blocks linked chronologically, just like other cryptocurrencies.
- Proof-of-work: Kaspa uses PoW to validate and add new blocks to the blockchain, securing the network through complex puzzles.
- Increased block size: Kaspa aims at increasing block size to improve transaction throughput and reduce congestion during high activity.
- Fiber network: “The Kaspa Fiber” is a secondary network that handles most transactions, making processing faster and more scalable
- GHOSTDAG: Kaspa uses GHOSTDAG protocol, combining Directed Acyclic Graphs and BlockDAGs, to reduce block confirmation times and increase throughput.
- Kaspa coins (KSP): KSP is the native cryptocurrency, facilitating exchange and incentivizing miners to secure the network through PoW.
Understanding BlockDAG and GHOSTDAG
BlockDAG, an acronym for Block Directed Acyclic Graph, is an innovative approach to distributed ledger technology that takes the underlying principles of blockchain and expands upon them to address some of their inherent limitations.
First, a Directed Acyclic Graph allows multiple chains of blocks to coexist and validate each other. BlockDAG is a type of DAG where the graph’s vertices are blocks, not individual transactions. The BlockDAG structure can be visualized as a web or network of blocks where blocks can reference multiple predecessors, not just one.
While using BlockDAG, a transaction’s security increases as more blocks reference it, either directly or indirectly. Consequently, transactions become more secure over time, with their acceptance in the network being more organic and gradual compared to the abrupt inclusion/exclusion in traditional blockchains.
On the other hand, the Greedy Heaviest Observed Sub-Tree Directed Acyclic Graph (GHOSTDAG) implements a greedy version of the Phantom protocol. GHOSTDAG efficiently approximates the main chain by focusing on subgraphs and identifying the heaviest or most worked-up one, assuming it represents the main chain.
KAS: Kaspa’s Native Currency
KAS is the native currency of the Kaspa protocol. Ether fuels all network activities, covering developer fees and processing transaction costs.
KAS, unlike tokens, undergoes no pre-mining or advance allocation, ensuring a fair distribution process. The maximum supply of KAS tokens is 28.7 billion, with a halving emission program implemented through seamless monthly reductions.
KAS is currently valued at $0.04204, with its market cap at around $794,334,329.
The Role of Community in Kaspa’s Growth
One of the fundamental driving forces behind Kaspa’s impressive growth and ongoing development is its vibrant, engaged, and fast-growing community. The project boasts over 50k Twitter followers, over 25k Discord members, over 20k Telegram members, and 4k Reddit subscribers.
The community here is interactive, and regularly updated news is posted.
Is Kaspa a Good Investment?
Kaspa’s exceptional BlockDAG structure and energy-efficient design place it in a favorable position for future growth in the market. Its potential for high scalability could make it a sought-after option for businesses and individuals in the times to come.
Its vision of providing a scalable instant transaction sequencing layer, faster settlement times, and private pre-trade activities safeguarded against censoring miners and bootstrapping is undoubtedly ambitious.
With its innovative technology and community-driven ethos, Kaspa is well on its way to achieving its goals.
However, as is with any investment, due diligence is critical.
In a world where speed, security, and scalability are crucial, Kaspa stands out with its unique approach to blockchain technology.
Its innovative GHOSTDAG protocol, community-driven ethos, and visionary leader make it a promising player in the crypto space. Whether you are a miner, trader, or developer, Kaspa offers a platform that caters to your needs without compromising security or decentralization.
Remember, investing in any cryptocurrency comes with its set of risks. Always do your research and only invest what you can afford to lose.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.