Kaspa (KAS) has become a viable challenger in the quickly developing world of cryptocurrencies because of its distinct method for addressing challenges with scalability and accelerating transaction rates. The entire cryptocurrency industry grabbed attention when the Kaspa was introduced in 2021. It is a blockchain that employs the proof-of-work consensus protocol. Also, it is much faster than traditional PoW blockchain, which shows the miners are too close to solving even the three blockchain courses.
Kaspa fixes problems with blockchain technology to build a just and resilient digital economy that works. This blog aims to provide you with information concerning Kaspa, including what it is, how it works, its characteristics, and whether it could surpass Bitcoin.
Let’s discuss this thoroughly as we go deep into the roots of Kaspa, explaining everything associated with it.
Kaspa was launched on November 07, 2023, and utilizes the kHeavyHash algorithm, easily integrated with common mining hardware like GPU and FPGAs. As the fastest and most scalable Layer-1 instantaneous validating transaction layer using a PoW alignment technique, Kaspa describes itself. Since it doesn’t make any additional views, it is practically as secure as Bitcoin because it is built on the GHOSTDAG protocol, a flexible version of the Bitcoin consensus. Unlike historical blockchains, which eliminated parallel blocks, allow them to coexist and arrange them in consensus.
KAS is the native cryptocurrency of the Kaspa network and fuels platform transactions and smart contracts. BlockDAG/PHANTOM allows for the simultaneous creation and linking of multiple blocks. As a result, the network can handle higher transaction throughput and reduce confirmation times.
Furthermore, this structure reduces the occurrence of forks and improves overall network security. One can register as a mining node operator to participate in the Kaspa ecosystem. KAS mining is more decentralized and allows for profitable independent mining at low hash rates due to its quick protocols.
Conventional blockchain networks can handle fewer transactions per second compared to Kaspa’s BlockDAG Technology. Kaspa’s scalability makes it appealing for microtransactions to massive money transfers.
Kaspa prioritizes network security and decentralization. This approach stops an individual unit from manipulating the system. The BlockDAG structure and revolutionary consensus mechanism protect the network from 51% of attacks and other dangers.
Security and decentralization make Kaspa a safe and reliable platform. By spreading out influence and authority across network users, this strategy also assures that no single party can take complete control of the system. Security and decentralization are essential to Kaspa’s goal of revolutionizing Bitcoin and creating an environmentally friendly and resilient digital economy. Thus, Kaspa can grow democratically with community input.
On Kaspa, dApps may be developed and put into operation by creators using smart contracts. In applications for decentralized finance (DeFi) and gaming, these smart contracts allow for complex, unreliable interactions between users.
With its capacity to create and authenticate numerous blocks per second, Kaspa addresses the scalability issue. Unlike Proof-of-Stake networks, this maintains privacy and autonomy without sacrificing either.
Multiple blocks are generated by Kaspa’s BlockDAG network every second to record transactions in the ledger. It makes Kaspa different from regular cryptocurrencies, as it takes 10x less to mine a single block and authenticate the transaction. On average, it mines 60 blocks in an hour, whereas a regular one can mine 6 blocks in an hour.
The nodes provide an array of transactions to the miners, who then start working on an encrypted puzzle to be the first to use these transactions to build a block. Upon completion of block formation, a block is sent to the nodes for validation before being added to the blockchain. The fact that the blockchain is linear and that each miner simultaneously processes the same set of transactions is important. Let’s get into the process of its working step-by-step:
Kaspa uses the Proof-of-Work (PoW) Phantom consensus algorithm. Compared to conventional PoW algorithms, this technique offers improved security and decentralization. Faster block distribution made possible by PoW Phantom lowers the possibility of network congestion and boosts total transaction performance.
Like other PoW-based cryptocurrencies, Kaspa uses a mining process where miners compete to solve challenging mathematical puzzles and add new blocks to the network. Kaspa’s system of awarding rewards, however, is distinct.
The number of blocks miners add to the “blue set” of the blockDAG (a subset of the blockDAG comprising the main chain and its immediate side branches) determines how much they are rewarded. This method of reward distribution opposes centralization and encourages ethical mining.
Miners verify transactions in Kaspa blocks. After being included in the BlockDAG, a transaction is confirmed. More confirmations equate to more blocks on top of the transaction chain. Once there have been sufficient confirmations, a transaction is complete and secure.
The acronym for the DAG is Directed Acyclic Graph, a mathematical concept for a directed graph with no cycles. There are vertices and edges, and each edge connects vertex positions to another one. BlockDag is a DAG that, in the context of distributed ledgers, has blocks as its vertices and references to earlier blocks as its edges.
The blockDAG aims to address the issues with Nakamoto consensus and linear blockchains. These issues include orphaned blocks, greedy mining, and scalability issues.
Blocks in a blockDAG refer to all of the graph’s tips rather than simply the longest chain’s tips, unlike in a typical blockchain, which only refers to a single origin.
Hence, no block is orphaned or energy wastes when BlockDAG is incorporated, allowing instant confirmations and facilitating more transactions.
At the initial stage, Kaspa supported simultaneous block creation through a BlockDAG. There was a need for such a mechanism to determine whether the sender genuinely had the necessary funds to submit a transaction or if those funds were already used in another parallel block that arranges the transactions into a linear stream of events. That’s when the GhostDAG entered the picture.
Kaspa presently uses GhostDAG as a consensus protocol, which enhances the PHANTOM consensus. PHANTOM cannot be used alone for practical applications because it needs to solve an NP-hard issue. They created a greedy algorithm GhostDAG using the logic behind PHANTOM, which can be implemented more quickly.
The creators formally demonstrate that GhostDAG is secure because it becomes increasingly more challenging to undo as time goes on. Read the GhostDAG whitepaper to know more about it.
GHOSTDAG, a proof-of-work consensus protocol by Kaspa, distinguishes it from conventional blockchains the most. In contrast to orphaning parallel blocks, GHOSTDAG permits these blocks to coexist and arranges them in consensus.
Kaspa can also avoid the traditional security, scalability, and decentralization of blockchains by enabling blockchains to increase block rates.
Kaspa takes pride in being a community-based initiative; KAS was given out through a fair launch, and the project’s advertisements claim that kaspa is entirely governed and funded by the community.
The GhostDag consensus protocol makes Kaspa better and has more advantages over Bitcoin. It is because Kaspa aims to overcome all Bitcoin’s drawbacks concerning blockchain network and network speed.
The GhostDag protocol allows the mining of multiple blocks simultaneously, saving a lot of time, and discards the linear blockchain requirement, leading to faster authentication and higher productivity.
As for Bitcoin, it takes about 10 minutes to solve one block, but for Kaspa, currently, it is 1 Second mining time per block, which is way higher than Bitcoin. This comparison of block mining time puts Kaspa on the higher side.
Another resilient feature of Kaspa that makes it better than Bitcoin is its greater speed and higher scalability without compromising on the security or decentralizing part of the network. Kaspa is visibly outperforming not just Bitcoin but other cryptocurrencies in the global market.
Kaspa does have a few special qualities and advantages that certain traders would find appealing. Its usage of GhostDAG technology enables high productivity, quick and secure transactions. Even in poor market conditions, KAS has shown an outstanding price rise since its launch, showing a potentially huge market demand for the cryptocurrency.
Purchasing KAS or any other cryptocurrency should be based on personal research and financial objectives. Investors or traders must perform in-depth studies and knowledge to become more aware. Diversifying their holdings or portfolio can also help to reduce risk factors.
To provide a better experience for its consumers, Kaspa continually grows its list of capabilities and upgrades its technological infrastructure. Kaspa will operate on a far more responsive and effective technology after its thorough evaluation and has been made available, enabling a significant speedup.
The inclusion of DAGKnight is another upgrade planned for Kaspa. With this protocol update, the network’s potential will be improved, and the current protocol will be upgraded. The first parameter-free cryptocurrency, Kaspa, will use DAGKnight to automatically adjust to latency and network health. This enhanced flexibility will help to further establish Kaspa’s reputation as a quick and reliable currency.
When DAGKnight is incorporated as planned, the capabilities of Kaspa will be improved, and the game will be taken to a whole new level. It is because Kaspa will be the most appealing and demanding choice for investors looking for secure, affordable, and fast transactions. Furthermore, Kaspa guarantees that Kaspa users can take advantage of quick and secure transactions without compromising anything, as it offers a scalable and effective solution.
A novel cryptocurrency project called Kaspa (KAS) tries to address the problems that standard blockchain networks have with scalability, security, and decentralization. Kaspa offers a reliable solution to the mining system by utilizing the distinct BlockDAG technology and a cutting-edge consensus algorithm. Prices for cryptocurrencies are very volatile and vulnerable to market risk. Additionally, currencies with a small market value, like KAS, are more susceptible to sharp price fluctuations. Kaspa will succeed and emerge as the most dependable PoW protocol in the crypto industry.
Kaspa offers resilient features such as BlockDAG technology, scalability, decentralized security, smart contracts and fast transactions. These features protected the network and made Kaspa favourable to mining enthusiasts.
Yes, Kaspa is better than Bitcoin because its GhostDAG consensus protocol offers it an advantage over Bitcoin. It surpasses Bitcoin’s challenges, such as network speed and scalability.
As per the data we collected, the price of Kaspa and its trading volume are $0.03806 and 29.271 Million, respectively. However, it is essential to note that the cryptocurrency market is highly volatile. Hence, the number keeps changing.