Finance:Kaspa

Kaspa is a decentralized cryptocurrency project that aims to provide a secure and scalable transaction processing solution. It operates based on the ethos of Bitcoin, Litecoin, or Monero, following a community-driven approach with no central governance. The coin was fair-launched without any pre-mining or pre-allocation of coins.

Features

Kaspa is implemented in the Rust programming language, providing a fully functional and capable drop-in replacement for the Kaspa Go language node. It supports various platforms, including Windows, OSX, Linux, and Raspberry Pi. The project's GitHub repository contains the implementation of the Kaspa full-node and related libraries.

Kaspa utilizes the kHeavyHash hashing algorithm and implements the GHOSTDAG protocol, enabling parallel block coexistence and high block rates. Unlike traditional blockchains, GHOSTDAG does not orphan blocks created in parallel but orders them in consensus. This allows for secure operation while maintaining fast block rates and minimal confirmation times dominated by internet latency. "Technically Speaking". https://kaspa.network. </ref>

The Kaspa implementation includes several notable features and subprotocols, such as Reachability to query the DAG's topology, Block data pruning, SPV proofs, and subnetwork support to implement layer 2 solutions easily.

Core Founders and Contributors

Kaspa was created by DAG Labs, a research and development company focusing on scalable DAG-based protocols, with investment from Polychain Capital. The core founders and contributors include Yonatan Sompolinsky, Michael Sutton, Shai Wyborski, Elichai Turkel, Ori Newman, and Mike Zak. These individuals actively contribute to improving and maintaining Kaspa and its codebase.

Tokenomics and Monetary Policy

Kaspa has a fixed total supply of approximately 28.7 billion KAS, with no plans to increase it further. The monetary policy consists of two phases. The pre-deflationary phase lasted for six months and featured a variable block reward. The chromatic phase, which followed, involves geometrically decreasing block rewards. The emission rate is adjusted to maintain a consistent minting rate per second regardless of changes in the block rate. By January 1, 2023, around 53.3% of the total supply had been mined.

Academic Recognition

Kaspa and its core founder, Yonatan Sompolinsky, have received academic recognition for their blockchain and cryptocurrency research contributions. Sompolinsky has published several research papers on transaction processing in Bitcoin, selfish mining strategies, and inclusive blockchain protocols. Noteworthy papers include "PHANTOM GHOSTDAG: A Scalable Generalization of Nakamoto Consensus" and "The DAG KNIGHT Protocol: A Parameterless Generalization of Nakamoto Consensus".

Market and Listing Updates

Kaspa's listing on Uphold, a centralized cryptocurrency exchange, was temporarily delayed due to technical issues. However, Uphold's Head of Research, Dr. Martin Hiesboeck, assured KAS holders that the issue was minor and would soon be resolved. Kaspa is currently listed on multiple exchanges, including KuCoin, MEXC Global, Gate.io, BingX, LBank, and Bitget.

Adoption and Potential

Kaspa's unique blockDAG infrastructure, enabling parallel blocks and instant transaction confirmation, has drawn attention within the cryptocurrency community. The project aims to address the trilemma problem of scalability, security, and decentralization. Despite not being listed on major crypto exchanges at the time of writing, Kaspa's potential has attracted investors and holders who see it as a promising protocol with high scalability.

Mining and Energy Efficiency

Kaspa offers several benefits for miners, including profitability, mining decentralization, energy efficiency, the potential for growth, and hardware wallet support. It is considered one of the most profitable GPU mining coins and utilizes the kHeavyHash algorithm for efficient mining. Its blockDAG architecture promotes mining decentralization and enables effective solo mining even at lower hashrates. Kaspa plans to support popular hardware wallets such as Ledger, OneKey, Tangem, and Arculus.

In addition to these advantages, Kaspa has explored the potential of optical proof-of-work (OPOW) to optimize its mining process further. Optical computation, which utilizes interactions of photons for computation, offers low energy consumption and can be ideal for Kaspa's requirements. The kHeavyHash algorithm, already friendly to optical ASICs, can be further optimized to accommodate optical POW.

The concept of OPOW is seen as a decentralizing force, as it shifts the focus of competition from energy to capital. This leveling of the mining field allows for geographical decentralization and the possibility of stealth mining operations, which are crucial for censorship resistance. However, adopting optical ASICs depends on R&D efforts and funding.

Changes to the current version of kHeavyHash may be necessary to optimize for OPOW, primarily through parameter adjustments. Governance of these changes is yet to be determined, with a focus on avoiding centralization on the manufacturing end. Kaspa aims to prioritize and support optical tech initiatives, as they align with the vision of a scalable peer-to-peer electronic cash system that upholds the principles of Satoshi, efficient security, geographical decentralization, and political feasibility.

External Links

• Official Website
• Kaspa Wiki
• Kaspa on GitHub
• Research Papers by Yonatan Sompolinsky
• "PHANTOM GHOSTDAG: A Scalable Generalization of Nakamoto Consensus"
• "The DAG KNIGHT Protocol: A Parameterless Generalization of Nakamoto Consensus"
• "SPECTRE Creators Propose 'PHANTOM' Blockchain Protocol" - CoinDesk