What is Kaspa (KAS)? Everything You Need to Know Today

Kaspa (KAS) has experienced a remarkably positive and upward trend over the past year. But what exactly is this cryptocurrency project?

Kaspa is a blockchain platform that utilizes a proof-of-work (PoW) consensus mechanism and incorporates a blockDAG (Block Directed Acyclic Graph) architecture. This structure 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).

Drawing inspiration from Satoshi Nakamoto‘s work, the project strives to preserve fundamental aspects of the Bitcoin (BTC) consensus. These include the PoW mining method, a deflationary economic model, and decentralized decision-making processes.

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. 

Kaspa Tokenomics 

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.

The token is up by a staggering 74,000% since its launch in July last year, according to data from CoinMarketCap. 

Kaspa Coin Market Cap

As of January 4, 2024, Kaspa is trading at $0.104844. The coin has a live market cap of $2,325,544,322, becoming the 39th largest cryptocurrency by market capitalization. The price of Kaspa has increased significantly over the past year, gaining more than 2,000%. 

Kaspa has a circulating supply of 22,180,993,085 KAS coins, according to data from CoinMarketCap. 

How to Buy Kaspa Coin?

To buy Kaspa, users first need to register an account on a cryptocurrency exchange that supports Kaspa. It is worth noting that most exchanges require users to complete Know Your Customer (KYC) procedures. This involves providing personal information and documentation to verify your identity​.

After completing this step, users can deposit funds into their exchange account either by linking a bank card for fiat transactions or by depositing cryptocurrency from another wallet. 

Once the account is funded, users can search for Kaspa or KAS on the exchange. They then need to decide whether to place a Market order (which executes at the current market price) or a Limit order (which executes at a predetermined price)​​.

Where to Buy Kaspa Coin?

Kaspa can be bought on several cryptocurrency exchanges. Some of the prominent exchanges that support the token include MEXC, CoinEx, TxBit, TradeOgre, and ViteX for decentralized options. 

Each exchange has its unique features and requirements. For instance, MEXC is known for its large user base and comprehensive trading options, while CoinEx offers a wide range of financial services​​​​​.

Another option to buy Kaspa is Web3 wallets like MetaMask. To buy the coin on Metamask, users first need to add the Binance Smart Chain network to their wallet and add some BNB. They can then head over to PancakeSwap and swap BNB for Kaspa. 

The Bottom Line

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.