What is Kaspa (KAS)? A Blockchain Combination of Bitcoin and Ethereum

Imagine a decentralized, publicly available, and highly capable network that can accommodate the needs of today's crypto innovation.

One of the first things that comes to mind when imagining such capabilities is Kaspa, a single-layer blockchain that is a combination of Bitcoin and Ethereum technology coupled with a new consensus mechanism called GHOSTDAG.

In this article, I will explain what the Kaspa project is and whether or not its capabilities can rival today's leading blockchains and make it popular.

What is Kaspa?

Kaspa is a single-layer blockchain that can be used to process transactions and build applications, making it stand as a hybrid between Bitcoin and Ethereum.

However, unlike Bitcoin and Ethereum, Kaspa uses a consensus mechanism called GHOSTDAG which is an innovation of consensus called Directed Acyclic Graph or DAG.

This mechanism makes the Kaspa blockchain non-linear, meaning that multiple blockchains can form simultaneously without overlapping and without double-logging.

The result is higher transaction speeds with good capabilities, so developers can build applications on it without having to consider how complex they are.

GHOSTDAG is the result of an innovative protocol mechanism called PHANTOM that was formed with the aim of improving the blockchain's ability to process transactions while maintaining a sufficient level of security.

Understanding the GHOSTDAG

Mechanism GHOSTDAG is an innovative Proof of Work-based mechanism that makes it comparable to Bitcoin in its explanation.

Through this mechanism, Kaspa can process transaction speeds of up to 10 blocks per second or 1 block every 0.1 seconds, which is a higher speed than some blockchains such as Bitcoin, Ethereum, Cardano, and Solana.

Bitcoin has a block creation time of about 10 minutes per block, Ethereum and Cardano are at about the same speed since the update at about 15 seconds per block, while Solana is at 2.5 seconds per block.

When compared, Kaspa certainly seems to be able to compete because of its high speed but still has strong security because it adopts the Proof of Work mechanism.

All of this is done by implementing several additional mechanisms such as block data pruning and the Simplified Payment Verification (SPV) mechanism where in the confirmation process, not all data in the blockchain needs to be seen and used so that unnecessary data will be ignored and even discarded.

The result is a storage-efficient blockchain that is high-speed yet secure.

Understanding the BlockDAG Infrastructure

The GHOSTDAG mechanism would not be possible without the help of an infrastructure called BlockDAG, a digital ledger framework whose task is to facilitate the process of block creation at high speed and secure transaction validation.

BlockDAG is an infrastructure that facilitates the implementation of the Directed Acyclic Graph consensus mechanism, so Kaspa can process transactions at a high speed while maintaining its level of security.

In addition, BlockDAG is the infrastructure that prevents double transaction recording in the GHOSTDAG mechanism where more than one block can be created at the same time.

All information regarding Kaspa's infrastructure can be found on the official website, but broadly speaking, BlockDAG, and GHOSTDAG are the main components of Kaspa's technology.

Community Management with Governance

Features In building its community, Kaspa is concerned with decentralization so governance features are important where all members can vote on changes to the Kaspa ecosystem.

Part of this decentralization is the launch of its coin called KAS which is done fairly without any over-allocation to early investors or developers.

The result is a fair coin launch for investors and project supporters, so that when there is a token vote, no one party has the power to manipulate the decision or the price of the coin.

The Team Behind Kaspa

Despite its decentralized nature, Kaspa has a team that supports its growth with a capacity that suits the needs of the project.

Kaspa's founder is Yonatan Sompolinsky, who has experience in computer science as well as blockchain research and digital-based infrastructure. His experience in the crypto world has also helped make it easier for Kaspa to grow in the crypto world successfully.

Yonatan is assisted by his team where some of the key names are Michael Sutton, Shai Wyborski, Mike Zak, Elichai Turkel, and Ori Newman.

The Kaspa team has been dedicated to improving the usability of its network and helping more developers to form applications that solve problems not only in the financial world but around the world through the Kaspa Blockchain.

KAS Coin Introduction

Kaspa has a coin called KAS that is used as a medium of exchange throughout its network ecosystem.

Starting from transaction fees to trading in several applications in its network, KAS has been officially used as a transaction tool for the Kaspa ecosystem.

Given that Kaspa has a high value of decentralization, the number of coins is 100% allocated to the market without any special allocation.

Currently the amount of KAS circulating in the market has reached 21.69 Billion KAS with a total inventory of 28.7 KAS.

This means that currently 75.57% of the KAS inventory is already circulating in the market which makes it increasingly scarce because the amount will not increase,

The KAS flow mechanism to the market uses a system that is almost the same as the Bitcoin halving mechanism where every month the amount of incoming KAS will continue to decrease.

This reduction is aided by the once-a-year halving mechanism which acts as a base cut value for the flow of CASH to decrease less and less each month.

An example can be seen in the graph above, where every month the amount of KAS entering the market will continue to decrease until it reaches a supply of 28.7 KAS, which is the total supply.

Kaspa's Future Plans

Kaspa has an evolving plan whose main goal is to improve the quality of the network. While there is currently no clear timeline as to when the implementation of developments will take place, Kaspa has some plans that are worth considering.

There are three main targets that the team is working on in the near future: data efficiency mechanisms, network improvements through the second layer, and achieving transaction speeds of up to 100 blocks per second.

Data efficiency is being done to simplify verification and reduce data space requirements for miners so that the network can move more efficiently with lower computing power requirements.

The second layer is being developed to improve transaction efficiency so that when more users enter, if the main network is full, there is a second layer that can still help process transactions.

Lastly, a target speed of up to 100 transactions per second is being set to improve the overall capabilities of the network, so that more complex applications can be built on the Kaspa network.

Conclusion

Kaspa is one of those projects that has high capabilities and ambitious targets because of its mechanisms that want to be better than the mainstream blockchains that exist today.

The project also prioritizes decentralization as its main value so that it upholds innovation but still maintains the initial value of crypto in its development.

Under the leadership of Yonatan Sompolinsky, the Kaspa team promises to be in it for the long haul to create a blockchain product that can beat the majority of existing blockchains.

But keep in mind there are still some risks with a relatively new project where the future is unclear because it hasn't happened yet.

Plus there is one risk that continues to be inherent with good technology blockchain projects and that is the issue of marketing.

Generally in the crypto world, when there is a really good blockchain, there is a lack of marketing where not many people know about its potential so not many people support and adopt the coin.

The result is often that similar projects only gain temporary fame but then move down which makes the risk even higher.

This means that even though Kaspa has excellent technology, investors still have to participate in the community and experience and research personally and in person in order to explore before buying.

So if investors want to buy coins from this blockchain as a long-term investment, it is better if this article is only used as a research tool and not as the only source to explore the Kaspa project.