Kaspa Wallet: Unleash Crypto Freedom

The project is open-sourced, community-based, and follows no central governance or business model. The idea was first implemented by Yonatan Sompolinsky and Aviv Zohar in 2016.

Kaspa Wallet

What is Kaspa?

Kaspa is a scalable decentralized tier-1 protocol with instantaneous transaction validation. Satoshi Nakamoto's designs inspired the project's creators but sought to improve upon them.

Kaspa's architecture is based on the Bitcoin protocol and Proof-of-Work consensus mechanism, but its throughput is much higher due to improved block processing technology. Kaspa has become one of the few next-generation protocols based on Proof-of-Work, as developers increasingly prefer Proof-of-Stake.

The protocol has been in development for 10 years, and DAGLabs, the company responsible for the Kaspa network, was founded in 2013. Kaspa's developments, namely the Ghost protocol, were even mentioned in the Ethereum Whitepaper. The leading Kaspa network is set to launch in November 2021.

How does Kaspa work?

The Kaspa protocol provides high blockchain performance while maintaining security through a "proof-of-work" consensus. Kaspa is powered by the PHANTOM protocol, which simplifies Bitcoin consensus and utilizes the BlockDAG (Block Directed Acyclic Graph) mechanism, which allows multiple blocks to be processed in parallel, significantly increasing network throughput.

Kaspa's network generates a block every second. By comparison, it takes 10 minutes to mine one block in the Bitcoin blockchain.

Instead of the Nakamoto CM consensus mechanism, Kaspa uses the GhostDAG (Greedy Heaviest Observed Subtree Directed Acyclic Graph) protocol to check the state of the blockchain and validate it. GhostDAG removes blocks that are deemed invalid or unreliable.

According to the official documents of the project developers, the Kaspa network can process up to 400 transactions per second — this is 57 times more compared to the Bitcoin protocol, which processes only up to 7 transactions per second. However, the blockchain observation shows that real-time throughput ranges from 1 to 1.6 TPS, but this could be due to the still low network activity, as each block contains only 2 to 4 transactions on average.

How much does it cost and what’s it for?

Kaspa’s native cryptocurrency KAS is currently being traded at a value of $0.04, and the project’s market capitalization stands at $706,568,365. Despite the fact that no projects have been launched on the blockchain yet, interest has been growing since the day it was released.

The most important part of the story is the fact that Kaspa is a very fast (and soon to be even faster) Layer 1 PoW blockchain. The approach taken by the developers looks secure (thanks in part to PoW) and the blockchain shouldn’t have any issues with scalability in the future. From the moment the project launched, a number of experts stated that they see Kaspa as the blockchain of the future.

Whether this is true or not, time will tell. For now, Kaspa is a fascinating project with lots of promise. By the way, you can store KAS in your Tangem Wallet!