Kaspa (KAS)

Launching in 2021, Kaspa has come a steady way to make an impact with its unique DAG structure. Although its current market value is not above $1, the trend has been continuous, signaling people’s trust and KAS potential.

So, what’s new with this DAG model, and how Kaspa has used it to be unique? On the other hand, KAS works on the PoW mechanism. Then what is the story behind implementing smart contracts on the blockchain? Let’s learn all about it, Together!

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Introduction to Kaspa (KAS)

Kaspa (KAS) is a cryptocurrency and an altcoin, introduced in 2021. It has introduced a unique Directed Acyclic Graph (DAG) architecture, which resulted in increasing the scalability and speed of the blockchain.

It is based on the GhostDAG protocol, which uses the proof-of-work consensus mechanism. Hence, the KAS coins are only mined.

However, the advanced structure and quite robust algorithm increase its speed up to one block per second, instead of its similar PoW-based Bitcoin (which has a speed of 10 blocks per second). Since KAS is the native GhostDAG currency, hence it is a Layer-1 solution coin (not a token).

The Genesis of Kaspa

Yonatan Somplinsky started the project with some of his other colleagues, inspired by the pseudonymous Nakamoto’s work (Bitcoin’s founder). They want to provide the same solution that Nakamoto offered with parallel blocks of high security but with faster speed.

As a result, they launched Kaspa on GhostDAG protocol with improved speed, better security, and scalability. But Kaspa is not just a Bitcoin copy on steroids. It has many other benefits too.

Kaspa’s Technological Edge

Let’s dive deeper into its unique DAG architecture, which gives the crypto coin a significant edge. With the help of this model, Kaspa can create multiple parallel blocks that coexist, transact, and order simultaneously. In this way, Kaspa created a new form, which is known as blockDAG.

On the one hand, it improves the scalability issue, while on the other hand, it maintains the high transfer speed without compromising on the security. Hence, it unfolds various advantages, such as:

• Better Reachability - The users can set an order of their requested blocks, creating a list in DAG’s topology.
• Block Data Pruning - To keep the blockchain clean, sizeable, and fast, Kaspa utilizes data pruning, which reduces the size by eliminating unnecessary and large blockDAG data. Each node stores approx. 3 days of data, keeping the network compact. It is also planning to add block header pruning in the future.
• Simple Payment Verification (SPV) - SPV proofs are a huge leap towards convenience. For those who are unfamiliar with the term, it allows you to verify whether the transaction is valid or not, without even downloading the whole blockchain.

Tokenomics of KAS

KAS being a native coin doesn’t have token protocols like ERC-20, BEP-20, or others. It has a total supply of 28.7 billion KAS, where 23.32 billion are already in circulation. But the real deal-breaker is the surge in its popularity, affecting an unbelievable 74,000% increase in its price in two years.

At the time of writing, it is already one of the top 50 largest cryptocurrencies according to the market capitalization. The people’s trust in these huge tokenomics is because the platform has a dynamic schedule of halving once a year. Regular monthly reductions and emissions also smooth out the flow and overall blockchain supply.

Mining Kaspa: A New Paradigm

Since working on the PoW consensus, users need to mine for the KAS coins. The process is overall the same as traditional mining, i.e.,

• Users solve complex mathematical problems.
• Each solved problem adds a block to the Kaspa blockchain.
• The newly formed block enters the Kaspa network, where nodes validate it and ensure its legitimacy.
• When everything is confirmed, the block is permanently added to the blockchain, while the user gets the reward.

The users mine from multiple connected mining pools, such as Progpool, Heropool, and 2Miners. Although the overall process is similar, Kaspa mining has its own perks.

How Kaspa Mining is Unique?

First, Kaspa ensures with each added block, the scalability and security are not compromised. Also, the transaction speed remains the same. For this purpose, it uses an advanced Distributed Ledger Technology (DLT). It helps the blockchain to remain the fast Layer-1 network, with all of its decentralization and open-source promises.

But there’s also another ace up in Kaspa’s sleeves. Although its mining rigs (working on the Cuckoo algorithm) consume energy, the structure is much more energy-efficient and eco-friendly than Bitcoin. It uses solar power to increase sustainability and greener rigs with a lower carbon footprint. As a result, it becomes a better option than other PoW cryptocurrencies.

The Scalability Solution: Kaspa’s Approach

Kaspa team’s scalability goals are above standard bars. While its robust algorithms allow users to maintain speed during transactions, the blockchain also has some subnetwork support.

As a result, you can also implement and use some Layer-2 solutions in it which increases the scalability limits to different heights. Additionally, this also increases the functionality of the network since you can perform more and faster transactions at a lower fee.

Another amazing aspect is the KAS monetary policy, which reduces block rewards over time rather than per block. Remember we discussed its halving schedule in Tokenomics? This is that annual halving, which starts at 440 KAS. Each month the rewards are reduced by the factor of (1/2)*(1/12), and it makes a complete halving after a year.

The whole process is named the chromatic phase, which keeps the reward system scalable and fair. Interestingly, the 12-note music scale has inspired this system, where each frequency is according to the note A4.

Kaspa’s Smart Contract Capabilities

As the speculations revolve around suggesting Kaspa will soon switch to a more powerful programming language, RUST, it has also increased the hype of smart contracts integration. Although the smart contracts are not available on the network yet, they will soon launch with better standards and capabilities.

Since the current Kaspa holders and users find the Ethereum Virtual Machine (EVM) model incapable of holding the KAS L-2’s transaction, its developers are brainstorming on a more versatile, stronger, and more dynamic solution. They have proposed the Rollup (RU) technology, which further opens two possibilities.

1.    Full Rollups Integration

In this scenario, the team will entirely integrate the Rollups technology, allowing Kaspa to create its native smart contracts. This will be a robust integration with faster speed and better security.

However, it requires a complete programming model revamp with a huge effort on the developer’s end.

2.    A Hybrid Approach

This approach will allow Kaspa to keep the sequencing and transactions to itself, while all the finalizations will happen on Ethereum. It sounds like a more convenient and smoother solution.

However, the approach will affect Kaspa’s autonomy since it will become more like an Ethereum sidechain.

How to Acquire and Store KAS Coins

Since KAS is among the top 50 crypto coins, you can easily find it on several platforms. Several reputable and famous crypto platforms have listed Kaspa (KAS) among their available cryptocurrencies, such as KuCoin, ByBit, Bitget, Binance, MEXC, and others.

Although the different exchanges will have slightly different procedures, the basic process of buying KAS coins is almost the same. Following are the steps you will find identical while purchasing KAS on any exchange of your desire.

1. Choose the crypto exchange from where you want to buy KAS.
2. Register and create an account there (if you haven’t yet).
3. Complete the KYC verification. Although some platforms allow crypto purchases without KYC, most platforms (like those mentioned above) require it. Also, we will advise you to complete the verification for safety reasons.
4. Next, fund your account to buy KAS. Some exchanges may allow you to directly buy the coin, but some don’t offer this leverage, and you have to swap it with other crypto coins/tokens.
   1. For this purpose, connect your bank account or credit/debit card with the platform.
   2. Select the cryptocurrency available and purchase a sufficient amount after completing some verifications.
5. Now, go to the Buy Crypto section (its name may vary according to the platform). Select Kaspa (KAS) from the list.
   1. If the direct purchase is available, buy the coins with your fiat currency.
   2. If it is not applicable, swap it with the crypto coins/tokens purchased in Step 4.
6. The KAS will transfer to your platform’s native wallet, which you can hold there, or withdraw to an external digital wallet.

Kaspa in the DeFi and Web3 Realms

Due to its robust blockDAG mechanism, accompanied by fast and scalable transactions, Kaspa has been a revolutionary step in the DeFi world. It has shaped multiple aspects of the blockchain industry, solving several scalability issues.

Now, Kaspa has other plans to take this progress a step further. The development team will soon shift it from the GoLang to a more powerful programming language, Rust. With this transfer, they aim to hit a speed of 10 blocks per second (from one) and eventually, 100 blocks per second.

Market Analysis and Future Prospects

According to the market at the time of writing, Kaspa has an average performance. It has a lower value than the price two months earlier. However, considering the value since the last year, it is an almost 250x increase (being at $0.108).

As the crypto pundits predict, its price may touch $0.314 by the end of 2025 and may cross the $2.00 mark by 2030. So, the trends sound bullish. Let’s hope it acts like that too.

Conclusion: The Future of Kaspa (KAS)

Kaspa soon grabbed the landscape of the crypto market since its launch due to its speed and scalability solutions.

Its unique blockDAG structure allows high transaction speed while maintaining security, transparency, and overall network flexibility.

Since its launch, it has been experiencing a bullish trend with regular intervals. Plus, the experts have high hopes for its future, hinting at a decent investment.

Although this is not financial advice, you are free to choose Kaspa at your own risk due to a promising future.

We Coin-Labs.com provides only objective information about Kaspa (KAS).
Therefore, we are not responsible for the investment decision in Kaspa (KAS) and the resulting loss.

Kaspa (KAS) Basics

Here are some factors that investors should consider before investing in Kaspa (KAS).

Cryptocurrency Features	Kaspa (KAS) (KAS)
Publisher or Developers	Kaspa
Headquarters (Registration Number)
Symbol	KAS
Platform
Published Date (CMC Registration)	2024-08-12
Max Supply	28,704,026,601 KAS

Reliability Score of Kaspa (KAS) in 2024

These are indexes mesuring the investment reliability of Kaspa (KAS) conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 3 Exchanges
Number of Available Pairs Worldwide	130 Pairs
Market Cap of the Cryptocurrency	2,264,651,613 USD (Rank #39)

The table above shows the result of investment suitability evaluation for Kaspa (KAS).
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Kaspa (KAS) Price

Here are the price and recent trading volume of Kaspa (KAS). (Data of 2024-08-12 09:34:00)

Price Items	Price and Trading Volume of Kaspa (KAS)
Kaspa (KAS) Price	0.161 USD
Price Change 24h	-3.51%
Price Change 7d	-2.94%
Trading Volume 24h	77,266,100 USD
Trading Volume Change 24h	98.08%

Cryptocurrency Metadata

You can check the development status and social media information of Kaspa (KAS) through the links in the table below.

Metadata Source	URL
🌎 Official Website	https://www.kaspa.org
📖 White Paper	https://eprint.iacr.org/2018/104.pdf
🛰️ Source Code (GitHub)	https://github.com/kaspanet/kaspad
🐦 Twitter	https://twitter.com/KaspaCurrency
🤖 Reddit	https://reddit.com/r/kaspa
🎺 Message Board	https://medium.com/kaspa-currency

Where to Buy Kaspa (KAS)

Here are the top ten world crypto exchanges where traders can buy Kaspa (KAS) in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Not listed
Coinbase	Not listed
Kraken	Not listed
KuCoin	Listed	https://www.kucoin.com/trade/KAS-USDT?rcode=rPH7VCS
Bitfinex	Not listed
OKX	Not listed
Huobi	Not listed
Bitstamp	Not listed
Bybit	Listed	https://www.bybit.com/en/trade/spot/KAS/USDT
Gate.io	Listed	https://www.gate.io/trade/KAS_USDT?ref=12312805

Frequently Asked Questions