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Investing In Kaspa (KAS) – Everything You Need to Know

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Kaspa (KAS) is a decentralized layer 1 network designed to improve scalability and efficiency without sacrificing security. It accomplishes this task by processing all blocks in parallel. In this way, Kaspa acts as more of a block-mesh, rather than a blockchain. Here's everything you need to know about Kaspa (KAS).

What Problems Does Kaspa Attempt to Fix?

There are many problems that Kaspa is suited to tackle. For one, the platform's structure solves efficiency problems and delays usually found on blockchain networks. The use of a BlockDAG structure vs blockchain eliminates these issues and enables the network to scale vertically.

Source - Kaspa (KAS)

Source – Kaspa (KAS)

BlockDAG vs. Blockchain

A blockDAG is a decentralized directed acyclic graph, meaning that all mined blocks connect. The structure is different from PoW networks, where only the approved block gets added to the chain of transactions to form the blockchain. This structure wastes lots of energy and time.

Notably, there's been a constant sounding of alarm bells regarding the energy consumption requirements of PoW networks like Bitcoin. Some reports have shown Bitcoin requires more electricity than some developed nations to remain valid. Consequently, there's a strong demand for an alternative PoW network style.

Energy Consumption

In a blockDAG, the opposite is true: All mined blocks are added to the ledger. This structure means that there isn't any wasted computational effort, lowering energy consumption significantly. Every PoW miner's efforts count and help secure the network in a blockDAG arrangement.

Inflation

Inflation is a major concern for both fiat currency users and crypto traders. Inflation refers to a loss of buying power in an asset. It can occur for many reasons, including an influx in the supply of a currency. Kaspa introduces a unique deflationary economic model integrating a geometric emission reduction over time.

According to developers, this reduction is based on a musical 12-note scale. Specifically, the token emission decreases following how semitones decrease in a tempered chromatic scale. The results are a naturally deflationary schedule that helps to drive token values over time.

Benefits of Kaspa (KAS)

There are many benefits that Kapsa (KAS) users enjoy. For one, the decontrolled structure improves security and enables direct p2p commerce and data sharing. The protocol leverages the proven and robust security of PoW mechanisms and improves their structure to drive scalability.

Scaling

Scalability is one of the main benefits that Kapsa brings to the market. The protocol provides near-instant finality with 1 sec block times. As such, you can see new transactions posted in 1 second. Additionally, the network supports the finalization of transactions in under 10 seconds. This structure is far more responsive than PoW competitors that often require +20 min to finalize transactions.

Interoperability

Interoperability is a main theme for the blockchain sector at the moment. Developers have recognized that it's easier to integrate other networks into their ecosystem rather than try to recreate their features. As such, there's a high demand for a dedicated ecosystem capable of working with legacy and traditional networks.

Notably, Kaspa was designed from day one to support layer 2 solutions. These options provide added scalability to the market and empower developers to create more immersive and helpful daps.

How Does Kaspa Work?

Kaspa differs from earlier decentralized networks in terms of the use of a DAG structure. This technology makes Kaspa one of the fastest open-source, decentralized  Layer-1 solutions today. DAGs drive performance by allowing multiple blocks to exist in parallel instead of simply the longest chain.

Simple Payment Verification (SPV) Proofs

One of the core features of Kaspa is its built-in payment verification system. Anyone can leverage this interface to keep track of the network and their transaction. This powerful feature streamlines verifying digital assets such as NFTs and smart contracts as well.

Token (KAS)

$KAS is the main utility token for the ecosystem. This token has a limited supply issuance of 28.7B tokens slated over the life of the project. Keenly, KAS tokens can be traded, used to pay fees, or staked to gain access to the community governance system.

Consensus

The Phantom 2.0 GhostDAG protocol is the main consensus mechanism that keeps Kaspa secure. This consensus mechanism connects all mined blocks and registers all activity to ensure full transparency and added performance. GhostDAG is the fastest PoW option in the market today.

This protocol can secure a DAG network and provides one-second block times with a 10-second finality. Additionally, the kHeavyHash algorithm used to secure the network operates as an upgraded SHA-256 option that eliminates waste.

Governance

Staking KASPA gives you access to the community governance system. This option introduces a weighted voting structure to help guide the platform and keep the community involved in its evolution. In this voting system, users stake more tokens to gain more influence. This structure ensures that those heavily vested in the project have their voices heard.

History

Kaspa (KAS) was founded by some of the most recognized developers in the market, including the lead developer, Yonatan Sompolinsky.  Sompolinsky is best known for his 2013 paper where he explains the concept of the GhostDAG protocol. Notably, Vitalik Buterin cites this paper in the Ethereum whitepaper.

Other participants in the Kaspa creating process include a mix of researchers and developers including Shai Wyborski, Michael Sutton, Mike Zak, Elichai Turkel, and Ori Newman. Notably, the project's research was funded by Polychain.

How to Buy Kaspa (KAS)

Currently, Kaspa (KAS) is available for purchase on the following exchanges.

Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

Uphold Disclaimer: Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.  Restrictions may apply, depending on location.

Gate.io – This exchange was established in 2013 and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK.  USA & Canadian residents are prohibited.

Kaspa (KAS) – Scalability, Performance, and Security

The introduction of the blockDAG structure could have a resounding effect on the decentralized economy moving forward. This structure provides high performance and retains the security found in PoW networks such as Bitcoin. These factors, combined with Kaspa's programmability, make the projector one to watch moving forward.

Learn about other cool crypto projects here.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com