Kaspa

Kaspa Overview

• Kaspa uses BlockDAG technology for parallel block processing.

• Offers higher scalability, speed, and security compared to traditional blockchains.

What is Kaspa?

Kaspa is a cryptocurrency uses a unique Block Directed Acyclic Graph (BlockDAG) architecture, allowing blocks to be created and processed in parallel. This sets it apart from traditional linear blockchains, enhancing both scalability and efficiency. Initially developed by DAGLabs with funding from PolyChain, Kaspa has since evolved into a community-driven project. The founder, Yonatan Sompolinsky, is known for his contributions to blockchain technology, notably the Ghost protocol mentioned in Ethereum's Whitepaper.

How Does Kaspa Work?

Kaspa operates using the GHOSTDAG protocol, which permits parallel block creation and organizes these blocks in a consensus process. This means that instead of rejecting blocks that are mined simultaneously, Kaspa's network can accept and order them, significantly reducing the orphan rate (where blocks are discarded). This structure allows Kaspa to maintain high block rates and secure operations

What Makes Kaspa Different from Other Cryptocurrencies?

Kaspa stands out due to its BlockDAG architecture, which offers several advantages over traditional blockchain systems:

1. Scalability: Kaspa can handle higher transaction volumes because it processes multiple blocks simultaneously.
2. Speed: The network currently processes one block per second, with goals to increase this to 10 or even 100 blocks per second.
3. Security: By allowing parallel block creation, Kaspa maintains robust security without compromising on speed or decentralization.

Who Created Kaspa?

Kaspa was initially developed by DAGLabs, a research and development company, with investment from PolyChain. The project has since evolved into a community-driven initiative with no central governance. The founder, Yonatan Sompolinsky, is a notable figure in the blockchain space, having contributed to the Ghost protocol, which is cited in the Ethereum Whitepaper.

What is Kaspa's Monetary Policy?

Kaspa employs a unique monetary policy inspired by the 12-note scale of music. Known as the chromatic phase, this policy reduces block rewards geometrically over time. The initial block reward is set at the frequency of the note A4, and it halves once per year. This approach aims to create a deflationary economic model, similar to Bitcoin.

Kaspa's Tokenomics

Kaspa’s tokenomics are rooted in its fair launch and fully decentralized nature. The project, which started in November 2021, had no pre-mine, pre-sales, or coin allocations, ensuring that it remains 100% community-driven, open-source, and decentralized.

Max Supply: Kaspa has a total supply cap of 28.7 billion coins.

Emission Schedule: The coin supply decreases gradually, with block rewards halving yearly through smooth monthly reductions, following the formula (1/2)^(1/12).

Initially, Kaspa was mined using CPUs during the mainnet's first month. By December 2021, community members had developed and released open-source GPU mining software, marking the start of widespread GPU mining for almost a year and a half. Some miners also used FPGAs, though the exact date of FPGA usage is unclear.

The mining landscape shifted again on April 13, 2023, when the ASIC era began with IceRiver introducing their product lineup for Kaspa mining.

How Can You Mine Kaspa?

Kaspa mining is based on the Proof-of-Work (PoW) mechanism, similar to Bitcoin. However, its BlockDAG architecture allows for more efficient mining, even at lower hash rates. You can mine Kaspa using ASIC miners for higher efficiency or GPU mining rigs. Both solo mining and pool mining options are available, with several mining pools like 2 MINERS and HEROMINERS supporting Kaspa.

Conclusion

In summary, Kaspa is not just another cryptocurrency; it represents a technological advancement in the blockchain space, aiming to solve the blockchain trilemma of security, decentralization, and scalability. Whether you're an investor, developer, or enthusiast, Kaspa offers exciting opportunities and potential for the future.