Kaspa (KAS) has been having an extremely healthy, green nine months on the markets. But what is the cryptocurrency project?
Kaspa is a blockchain network that uses a proof-of-work (PoW) consensus mechanism and implements a blockDAG (Block Directed Acyclic Graph) structure, which allows multiple blocks to coexist in parallel, addressing the issue of blockchain’s high orphan rate (where, for instance, two blocks are mined simultaneously, but the network only accepts one of them).
The project, taking inspiration from Satoshi Nakamoto, aims to maintain key elements of the Bitcoin (BTC) consensus, such as proof-of-work mining, deflationary monetary policy, and decentralized governance.
How Does Kaspa Work?
Unlike traditional blockchains, Kaspa employs the GHOSTDAG protocol, which allows blocks created in parallel to coexist and be ordered in consensus. This approach, known as a blockDAG, ensures secure operation while maintaining high block rates.
Currently operating at one block per second, Kaspa’s goal is to achieve even higher rates of 10 or even 100 blocks per second. This scalability potential sets Kaspa apart from many other blockchain networks.
Kaspa offers a range of features that contribute to its robustness and usability.
These features include reachability, which allows users to query the DAG’s topology, block data pruning (with future plans for block header pruning), and Simple Payment Verification (SPV) proofs, a cryptographic technique that allows users to verify the validity of transactions without having to download the entire blockchain.
The project also boasts subnetwork support, which enables the implementation of layer 2 solutions, paving the way for enhanced functionality and scalability.
Another notable aspect of Kaspa is its unique monetary policy. The project implements a geometric emission reduction over time, inspired by the 12-note scale of music.
This policy, known as the chromatic phase, decreases block rewards in a manner that aligns with the frequencies of consecutive semitones in a tempered chromatic scale. The initial block reward is set at the frequency of the note A4, and the reward halves once per year.
Kaspa Founders and Development Team
Kaspa was initially designed by research and development company DAGLabs, with investment support from PolyChain. However, Kaspa has evolved into a community project with no central governance or business model.
The founder of Kaspa is Yonatan Sompolinsky, a Postdoc CS at Harvard University and a member of the MEV Research Team. Yonatan’s contribution to the field of blockchain is notable, as his 2013 paper on the Ghost protocol is cited in the Ethereum Whitepaper.
Other key members of Kaspa’s development team include Shai Wyborski, a Cryptography Doctoral student; Michael Sutton, a CS Master; Mike Zak, a CS Undergrad; Elichai Turkel, a Cryptography researcher; and Ori Newman, a Developer.
The blockDAG architecture of Kaspa, combined with its rapid block rates, is intended to make KAS mining decentralized and offer effective solo mining even at lower hash rates.
Kaspa was fair-launched in November 2021, with no pre-mine, pre-sales, or coin allocations. The maximum supply of Kaspa tokens is set at 28.7 billion coins, and the emission schedule follows a halving pattern once per year, with smooth monthly reductions.
Currently, the project’s native token, KAS, is trading at around $0.14, up by around 50% over the past day. The token is also up by a staggering 74,000% since its launch in July last year, according to data from CoinMarketCap.
Kaspa is an innovative blockchain project that combines the security of the PoW mechanism with high block rates and minimal confirmation times. With its unique features and commitment to scalability, Kaspa has the potential to become a major player in the realm of decentralized applications.