What Is Kaspa (KAS)?
Kaspa (KAS) is a Layer 1 blockchain solution that aims to enhance the speed and scalability of transactions whilst retaining the principal characteristics of the Nakamoto Consensus, the foundational algorithm used by Bitcoin.
Unlike traditional blockchains, Kaspa uses the BlockDAG structure. Instead of a single chain of blocks, blocks are interconnected in a web-like, directed acyclic graph (DAG) pattern. As a result, multiple blocks can coexist and be processed in parallel, effectively addressing the high orphan rate issue found in traditional blockchains, where only one of simultaneously mined blocks is accepted by the network.
Kaspa is an open-source project, meaning its code is publicly available for anyone to review, contribute to, or modify. Such transparency invites a global community of developers and enthusiasts to participate in its development, driving continuous innovation and ensuring that the project remains decentralized and free from centralized control. As a result, Kaspa provides a highly scalable and secure blockchain environment whilst remaining true to the elements of Bitcoin — proof-of-work mining, a deflationary monetary policy, and the absence of central governance.
Who Created Kaspa?
Kaspa was founded in 2016 by Yonantan Sompolinsky, who is one of the authors of the GhostDAG protocol and a notable figure in the crypto sector. His 2013 paper on the Ghost protocol is cited in the Ethereum Whitepaper. Yonatanholds a postdoctoral degree in Computer Science from Harvard University, where he is part of the MEV (Minimal Extractable Value) Research Team.
The development of Kaspa is supported by an experienced team, including Cryptography Doctoral student Shai Wyborski, CS Master Michael Sutton, Mike Zak, Cryptography researcher Elichai Turkel, and Developer Ori Newman.
How Does Kaspa Work?
The GhostDAG protocol sets Kaspa apart from other proof-of-work Layer 1 solutions in the crypto market. GhostDAG stands for "Greedy Heaviest-Observed Subtree" and is an algorithm that ensures all parallel blocks are included in the ledger. Here’s how it works:
Parallel Block Inclusion: GhostDAG allows multiple blocks created simultaneously to coexist and be processed together. Unlike traditional blockchain protocols, GhostDAG does not discard orphaned blocks but integrates them into the main chain.
Consensus Ordering: GhostDAG orders these parallel blocks in a way that maintains a coherent and secure main chain. By organizing the blocks based on their weights, ensuring the heaviest subtree (most substantial chain) is always extended, the network remains consistent and secure.
Efficiency and Security: By integrating all valid blocks and organizing them efficiently, GhostDAG reduces the chances of block orphaning and increases the overall security and throughput of the network.
In short, the GhostDAG protocol enables Kaspa to process multiple blocks simultaneously and maintain very high block rates. At the moment, Kaspa is operating at one block per second with goals to reach 32 blocks per second and visions of up to 100 blocks per second.
What does this mean for users?
Fast Transactions: Kaspa's network generates multiple blocks every second, allowing rapid transactions to be recorded on the ledger. With transactions fully confirmed in about 10 seconds, Kaspa is suitable for everyday transactions.
Instant Confirmation: Designed to be much faster than Bitcoin, each Kaspa transaction is visible to the network within one second, and fully confirmed within 10 seconds. Near-instant confirmation makes Kaspa ideal for real-world applications where quick transaction verification is critical, such as point-of-sale payments and time-sensitive trades.
Scalability: Kaspa addresses scalability by enabling the network to generate and confirm multiple blocks per second. Being able to handle a large volume of transactions in a very short period of time makes Kaspa highly effective for high-demand scenarios such as retail environments, gaming platforms, and financial services that require rapid processing times.
Efficient Proof-of-Work: Kaspa uses the kHeavyHash algorithm, a specialized method for validating transactions on the network which is optimized for high efficiency and forward compatibility with photonic mining (a next-generation, light-based technology for cryptocurrency mining that is still in development).
The kHeavyHash algorithm ensures true decentralization by allowing a wide variety of miners, even those with less powerful hardware, to participate in the network. Additionally, the efficiency of kHeavyHash helps conserve energy and mitigates some of the environmental concerns associated with traditional mining processes for other PoW networks.
Security: Kaspa uses the same security methods as Bitcoin but with a different hashing algorithm called kHeavyHash instead of SHA-256. A hashing algorithm converts transaction data into a unique fixed-length string, securing and verifying transactions on the blockchain to prevent tampering.
The kHeavyHash algorithm provides all the security benefits of SHA-256 but also includes an additional weighting function to enhance security. In kHeavyHash, the weighting function assigns varying levels of importance to parts of the data during the hashing process, enhancing resistance to attacks that manipulate transaction order or timing. Like Bitcoin, Kaspa is fully decentralized and permissionless, meaning anyone can participate in the network and help secure it.
Additional Features and Subprotocols
Reachability: Allows users to query the Directed Acyclic Graph (DAG) topology — a type of data structure where blocks are connected in a non-linear, web-like pattern, rather than a single chain like in traditional blockchains.
Reachability enables efficient navigation through the blockDAG, ensuring that transactions can be quickly verified and confirmed. By understanding the relationships between blocks, users and developers can better manage and optimize their interactions with the network.
Block Data Pruning: Kaspa supports the pruning of block data to optimize storage requirements, allowing for old, unnecessary data to be removed from the network, freeing up space and resources. Future plans include block header pruning, which will further improve the network's efficiency by allowing larger chunks of data to be removed.
Simple Payment Verification (SPV) Proofs: Verifying transactions on a blockchain typically requires a user to download the entire blockchain, which contains a complete history of all transactions. It is a time-consuming process that demands a lot of computing power, making it challenging for users to participate.
SPV proofs offer a solution by allowing users to verify transactions without needing to download the full blockchain. Instead, they can check the validity of a transaction using only a small portion of the data, making it easy for all levels of users to participate in the network.
Subnetwork Support: Enables the implementation of layer 2 solutions, providing enhanced functionality and scalability. Subnetworks can operate independently while still being part of the overall Kaspa ecosystem, allowing for more complex applications and services to be built on top of the network.
Why Trade KAS?
The KAS token serves several important functions within the Kaspa blockchain:
Transaction Fees: KAS tokens are used to pay for transaction fees on the Kaspa network. Each transaction requires a small fee in KAS to be processed and confirmed by the network, ensuring that the network remains economically sustainable by compensating miners for their work in validating transactions and maintaining the blockchain.
Mining Incentives: In Kaspa's proof-of-work consensus mechanism, KAS tokens serve as rewards for miners who validate transactions and add new blocks to the blockchain, incentivizing miners to contribute their computational power to the network.
Smart Contracts and dApps: KAS tokens are essential for executing smart contracts and interacting with decentralized applications (dApps) on the Kaspa network, providing the gas fees for these operations.
Staking: KAS tokens can also be staked to earn rewards. Staking involves locking up a certain amount of KAS tokens to support network operations such as validating transactions and securing the Kaspa network.
KAS Tokenomics
Launched on: 7 November 2021
Total supply: 24.3?? tokens
Price per token: USD$0.20 per token (as of 31 July 2024)
Total market cap: USD$5B (as of 31 July 2024)
Allocation: Fair launch with no pre-mine, pre-sales and no initial coin allocations.
How to Trade KAS on Flipster?
Trading KAS on Flipster is easy. Get started:
Sign up for an account on the Flipster website or by downloading the Flipster app (Android or Apple).
Click the [Trade] tab.
Search for KAS and click on it.
Select the leverage (up to 100x).
Select either a Trigger Order or Market Order.
Input the amount of crypto you wish to trade, or select a percentage of your available funds to use.
Once you have confirmed the details, click the [Long] or [Short] button to open a position.
Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.