top of page
Search

Kaspa | The Money System Bitcoin Could Never Be

Blockchain Is Old News

Hardly a decade has passed since the creation of bitcoin, and we have already uncovered a new style of blockchain that claims to solve our onerous trilemma conundrum.


Kaspa crypto $KAS claims to take the best parts of bitcoin's decentralized, proof of work network, and rather than deploy that on a blockchain, they have deployed it on a blockDAG

Founded by Yonatan Sompolinsky, Kaspa presents a fresh take on peer-to-peer payments, combining the best elements of Bitcoin's decentralized network with its own unique features. The concept of Kaspa was conceived and brought to fruition in 2016. Utilizing the innovative GHOSTDAG protocol, they devised and executed a project aimed at addressing the scalability challenges faced by proof-of-work blockchains.


Before we get too far, Take a moment to watch this video explaining what a DAG (Directed Acyclic Graph) is

If you are familiar with $HBAR's Hashgraph then you already know what a DAG is.


Choosing a block DAG has enabled Kaspa to have multiple blocks closed within the same second, tote an instant transaction confirmation status, and profess to have the fastest proof of work “blockchain” out there.


Roughly 400 tps.



Smart Contracts


While Kaspa currently focuses on being a peer-to-peer payment system, its ambitions extend to deploying smart contract capabilities atop its robust proof-of-work blockchain.



The project's founder, known online as hashdag, envisions two potential routes for the platform. By implementing native smart contracts, Kaspa Crypto could differentiate itself from other Ethereum-compatible solutions, positioning it as a unique player in the market.


Obviously this would be more advantageous for them in the long run. We will have to wait and see the outcome here. My concern is if they choose to settle smart contracts on Ethereum, then they just become a mediocre sidechain to Ethereum.


With the prospect of smart contracts, Whatever solution they choose to move forward with, I believe launch likely coincide with a 2025 bull market. Meaning, there would be a reason for hype and excitement around $KAS at a time where money is freely flowing within the Crypto space again. Of course, that is reliant on the four year cycle playing out once again.




Fair Token Launch and Limited Supply


What immediately grabbed my attention was Kaspa's commitment to a fair token launch and limited supply. Unlike other projects that favor early investors with discounted tokens, Kaspa Crypto took a different approach.


Only those who mined the initial blocks of the Kaspa Network were eligible to receive Kaspa tokens, ensuring a more equitable distribution. With no single wallet address holding more than 1.3% of supply.


Kaspa Crypto's tokenomics are particularly favorable and encourage broader participation. Thanks to their fair launch, there is likely no collection of wallets that are able to manipulate the price on the free market.






They also make it abundantly clear the release schedule for tokens and currently 19 billion out of the 28.7 billion maximum supply are in circulation. Meaning the massive amount of dilution that the coin had to go through is already in the past.


Despite that dilution, Kaspa is up 3000% in the last 12 months sitting at a market cap of 300 million at the time of this writing 6/8/2023.



Potential Red Flags


Things to pay attention for would be a successful implementation of smart contracts, hopefully native to Kaspa as I believe, utilizing Ethereum settlement for smart contract capabilities, would simply make Kaspa another Ethereum side chain


What happens to incentivize minors to continue to validate the network after the mining rewards no longer cover the cost of energy consumption due to the rapid decrease in mining rewards, and it’s proof-of-work nature. This is a concern for bitcoin, but The fees are structured in a way where miners should be well compensated when that day comes. Kaspa has virtually no fees, and unlike bitcoin, mining rewards will run out in the next couple of years. (check emission schedule)


As of now there are only 210, nodes, running the network, and while growing quickly, it does make you question who owns all of those nodes. It is worth noting here though that Kaspa is attempting to be as decentralized as it can this early into its life cycle. The website is even run by community members.


I could not find a resource for total number of wallets, which makes it very difficult for me to run Kaspa through a valuation model.


With all of that being said, I’ll plan on opening a small position into Kaspa because it has not gone through a bull market yet and it checks the necessary boxes to qualify as a moon bag for me personally.


I would rather hold a Kaspa than a shiba.


 

TLDR:

  • Kaspa Crypto ($KAS) attempts to combine the best aspects of Bitcoin's decentralized, proof-of-work network with its own unique features.

  • Kaspa utilizes the innovative GHOSTDAG protocol and is deployed on a blockDAG, rather than a Blockcahin.

  • While currently focusing on peer-to-peer payments, Kaspa has ambitions to deploy smart contract capabilities.

  • Kaspa's fair token launch and limited supply ensure a more equitable distribution, with no single wallet holding more than 1.3% of the supply. Currently, 19 billion out of the maximum 28.7 billion supply are in circulation.

 

Sources:

https://kaspa.org/ https://kas.fyi/top-addresses https://www.youtube.com/watch?v=1Yh5S-S6wsI https://medium.com/kaspa-currency/the-kaspa-community-and-the-exploration-of-smart-contracts-f24c585b8211 https://kaspa.org/wp-content/uploads/2022/09/KASPA-EMISSION-SCHEDULE.pdf

 
 
 

Comments

bottom of page