An Introduction to Kaspa:
The objective driving this project is to construct a service reminiscent of Nakamoto’s vision but capable of operating at greater speeds and cheaper costs. Their aim was to create a system that transcends the constraints of Satoshi’s initial protocol (commonly known as Nakamoto Consensus), while staying true to the core principles that underpin Bitcoin.
In contrast to Satoshi’s original vision, Bitcoin did not evolve into a peer-to-peer electronic cash system as intended. Instead, it has solidified its position primarily as the ultimate store of value, often likened to digital gold. This transformation represents a monumental achievement in the realm of finance, marking one of the most significant revolutions in human history. However, it also leaves ample room for enhancements like scalability solutions on the layer 1, as bitcoin’s current TPS is around 7.
In summary, the project seeks to reconcile Nakamoto’s vision with the speed of the internet while preserving the essence of Bitcoin’s principles. Although Bitcoin has evolved into a digital store of value, there remain opportunities for L1 improvements or the consideration of alternative trade-offs at the foundational level.
Kaspa draw inspiration from silver, which offers a distinct set of tradeoffs compared to gold. In the original Aramaic text (Dahav vs. Kaspa), silver was historically regarded as less precious than gold but more conducive to circulation—less valuable yet widely accepted as a medium of exchange. In light of this perspective, they named the project “Kaspa,” using the Aramaic word for both “silver” and “money.”
How it works:
The consensus framework of Kaspa has been meticulously crafted to address what we perceive as the primary challenges facing the second decade of cryptocurrency development. As blockchain technology matures and its integration with various web applications gains traction, we have identified two key areas that demand a fundamental reevaluation of the underlying consensus mechanism: the speed at which transactions are included in the ledger and the control over the order of transactions within the ledger.
The Kaspa team believes that achieving near-instant transaction inclusion (often referred to as the first confirmation) in the ledger is of paramount importance for enhancing user and developer experiences, as well as facilitating integration with other web applications. Kaspa’s design is optimized to minimize the latency imposed by the consensus engine on transaction processing and user interactions. Additionally, they contend that enabling peripheral nodes with relatively low hashrates to mine blocks at a high frequency, asynchronously, is crucial in mitigating significant frontrunning and MEV (Miner Extractable Value) threats. These threats pertain to the ability of miners and trading bots to manipulate the order of transactions, gaining an unfair and sometimes undetectable advantage over regular users. Sub-second block times in Kaspa facilitate pre-trade privacy and stealth transactions, safeguarding users against such manipulative practices.
Offering instant confirmation is a formidable challenge, particularly when one is committed to upholding principles of decentralization and avoiding reliance on specific network topologies with minimal safety margins. Kaspa has embarked on the challenging path of designing a system based on Satoshi Nakamoto’s original paradigm and foundational principles. In the rapidly evolving realm of cryptocurrencies, there has been a scarcity of serious attempts to adhere to Satoshi’s v1 protocol while simultaneously introducing new capabilities built upon those same foundational principles. While Bitcoin evolves into the ultimate digital reserve asset of the internet, we firmly believe that there remains a substantial and pressing demand for the realization of Satoshi’s initial vision: a peer-to-peer electronic cash system.
Since transaction ordering represents the primary hurdle in any consensus protocol, Kaspa’s foundational layer is dedicated to becoming a high-speed and scalable transaction sequencing engine, often referred to as a proof-of-publication mechanism. This base consensus layer will primarily manage the state of payments (UTXO set), while the computation of a more general and expressive state will be delegated to Layer Two operations. This approach aligns with the innovative work of numerous Ethereum researchers and developers who are actively constructing rollups technology. Rollups technology effectively reduces the cost of operating base consensus nodes by decoupling computation from data availability.
Kaspa is a blockDAG (DAG) not a blockchain like bitcoin:
BlockDAGs exhibit similarities to a directed acyclic graph, which is a mathematical framework in which vertices represent individual blocks, and the edges signify the relationships between child and parent blocks.
In contrast to traditional blockchains, which present a straightforward linear arrangement, blockDAGs manifest as intricate, interconnected networks. Instead of adhering to a single sequential chain of blocks, as seen in conventional blockchains, blockDAGs maintain references to multiple predecessors and all the tips within the graph structure. This means they incorporate blocks originating from various branches rather than following a single, primary branch.
Kaspa utilizes GHOSTDAG, an advanced blockDAG protocol that extends beyond the Nakamoto Consensus model, offering enhanced capabilities and flexibility.
The Founder Of Kaspa: Yonatan Sompolinsky
In the swiftly evolving realm of blockchain technology, few individuals have made as significant an impact as Yonatan Sompolinsky. Serving as the visionary founder of Kaspa, he has played a pivotal role in pioneering groundbreaking protocols that have revolutionized our understanding of decentralized systems.
Yonatan’s notable contributions in the field of blockDAG technology encompass the Spectre protocol, GhostDAG protocol, Phantom protocol, DAGKnight consensus, and the development of the Kaspa platform. These collective achievements have fundamentally redefined the capabilities and possibilities of blockchain technology.
Tokenomics:
The blockDAG structure, characterized by its high-speed block generation, promotes greater mining decentralization and facilitates successful solo-mining, even for miners with lower hashrates. Kaspa was launched in November 2021, following a fair and equitable process, devoid of any pre-mining, pre-sales, or coin allocations. Kaspa stands as a fully decentralized, open-source, and community-driven project. The maximum supply of Kaspa comprises 28.7 billion coins, and its emission schedule involves gradual monthly reductions, reducing by a factor of (1/2)^(1/12) annually.
Conclusion:
Kaspa stand the best chance at being the silver to gold (bitcoin). the technology is there, it embodies similar properties to how silver acts to gold in a digital manor. I really like that fact that its not trying to be bitcoin like Bitcoin Cash and others but more accompany it in this monetary phenomena! Bitcoin is valuable because people believe it to be so, what’s to stop Kaspa from gaining belief in it and taking a seat next to bitcoin as its more affordable calculative brother! A project to keep your eyes on indeed!
