What is Kaspa?

What is Kaspa (KAS)?

Kaspa is a layer 1 blockchain that enhances transaction speed and scalability using a unique proof-of-work blockDAG structure. The GhostDAG/PHANTOM protocol enables instant transaction confirmations. Kaspa retains Bitcoin's deflationary monetary policy and decentralized governance while vastly improving transaction throughput and reducing confirmation times, making it suitable for diverse digital currency applications.

Kaspa's GhostDAG consensus mechanism balances security, scalability, and decentralization. It achieves higher block rates without sacrificing security, enabling rapid transactions and fostering a decentralized mining environment. Kaspa represents a key technological advancement in blockchain, revolutionizing digital transaction processing and security.

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How Does Kaspa Work?

Kaspa employs a blockDAG structure, an evolution from traditional blockchain technology, allowing for simultaneous block processing that increases speed and scalability. It uses a proof-of-work (PoW) consensus mechanism to ensure network security and employs the GhostDAG/PHANTOM protocol to integrate orphan blocks, maintaining high security and rapid transaction confirmations.

Here is an overview of its key components:

1. Proof-of-Work (PoW) Engine: Ensures network security and validates transactions through computational power.
2. BlockDAG Structure: Allows concurrent processing of blocks, significantly enhancing scalability and transaction speed.
3. GhostDAG/PHANTOM Protocol: Efficiently integrates orphan blocks, addressing the blockchain trilemma by balancing security, scalability, and decentralization.
4. Instant Transaction Confirmations: Provides near-instant confirmations, essential for high-speed applications.
5. High Transaction Throughput: Optimizes block rates and sizes to handle higher transaction volumes, enhancing scalability.
6. Decentralized Mining: Quick block rates lower mining income variance, reducing incentives for large mining pools and promoting decentralization.

Kaspa's architecture supports a fast, scalable, and secure network, making it suitable for applications such as e-commerce, smart contracts, and decentralized finance (DeFi), all while maintaining the core principle of decentralization.

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KAS Tokenomics

Kaspa's tokenomics for the KAS token focuses on decentralization and accessibility, launched fairly in November 2021 with no pre-mine or pre-sales. Its blockDAG architecture allows fast block rates, encouraging decentralized mining and enabling efficient solo-mining at various hash rates.

‍Key Aspects of Kaspa's Tokenomics:

1. Max Supply: Limited to 28.7 billion Kaspa coins, ensuring scarcity and value preservation.
2. Emission Schedule: Features an annual halving, smoothly adjusted monthly by a factor of (1/2)^(1/12), gradually reducing new coin production.
3. Mining Progression: Evolved from initial CPU mining to GPU and FPGA, with ASIC mining introduced by IceRiver in April 2023, demonstrating the network's adaptability.
4. Circulating Supply and Market Cap: With 22.7 billion KAS in circulation, Kaspa's market capitalization is $3.2 billion, reflecting its significant market presence.

Kaspa's tokenomics reinforce its principles of fairness, accessibility, and long-term sustainability within the cryptocurrency ecosystem.

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Kaspa Founders

Kaspa was founded by Dr. Yonatan Sompolinsky, the creator of the GhostDAG protocol that the network is built on. Dr. Sompolinsky is a recognized figure in cryptocurrency research and is currently a postdoctoral researcher at Harvard, where he studies transaction ordering protocols and Miner Extractable Value (MEV).

The core team includes Michael Sutton, a specialist in distributed systems research and development; Shai Wyborski, a Kaspa researcher and co-author of the GhostDAG paper; and Elichai Turkel, an applied cryptographer and high-performance developer.

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Kaspa Block Explorer

For those interested in examining the Kaspa network, the Kaspa Block Explorer is an essential tool. It offers an in-depth view of the Directed Acyclic Graph (DAG) structure that supports Kaspa. Users can search for specific addresses, blocks, and transactions, gaining valuable insights into network activity.

The explorer also provides crucial network statistics, including block reward, total block count, header count, virtual DAA score, and hashrate. This comprehensive data helps users understand the performance and security of the Kaspa network.

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Bottom Line

Kaspa is a pioneering layer 1 blockchain that uses a unique proof-of-work blockDAG structure to boost transaction speed and scalability. The GhostDAG/PHANTOM protocol ensures instant confirmations, while the consensus mechanism balances security, scalability, and decentralization. Kaspa's fair launch, efficient architecture, and expert team make it a key player in digital currency, suitable for applications like e-commerce and decentralized finance.