The Kaspa project, launched in 2021, immediately attracted the attention of the entire crypto industry. It's a Layer 1 blockchain that uses the proof-of-work consensus mechanism, but unlike classic PoW blockchains, it's extremely fast, suggesting that its creators have come close to solving the blockchain trilemma. We'll explain what makes Kaspa special and why it's faster than its rivals.
How fast is the Kaspa network?
Kaspa is currently believed to be the fastest PoW blockchain. A single block containing about 200 transactions is mined an average of once every second, and transactions are confirmed in no more than 10 seconds to confirm transactions.
At the same time, the creators of Kaspa believe that measuring the throughput of their blockchain in TPS (transactions per second) is not entirely correct; instead, they draw on an analogy with libraries.
If we imagine that each block is a book that a librarian needs to put on a shelf, and each page of the book is a transaction, then the speed doesn't depend on how quickly the pages are turned, but on how fast the librarian puts the books on the shelf (which represents the blockchain). The developers plan to increase the throughput to 32 blocks per second (BPS) and, in the future, hope to achieve an incredible figure of 100 BPS. To facilitate this, the project code was migrated to Rust.
How does the Kaspa blockchain work?
To achieve these high speeds using PoW, the creators of Kaspa came up with the idea of storing data on a blockDAG, or a directed acyclic graph of blocks. The GHOSTDAG protocol reaches consensus, while PoW ensures on-chain security. Let's try to figure out what all of these things are and how they work together.
To better understand how blocks are stored in Kaspa and how this blockchain is different from the rest, we need to remember how new blocks are added to classic PoW blockchains like Bitcoin.
Miners receive a list of transactions from the nodes and begin to solve a cryptographic problem, competing with each other to be the first to create a block using these transactions. After the block is created, it is sent to the nodes for verification and added to the blockchain. What's important here is the fact that all of the miners are processing the same set of transactions simultaneously, and the blockchain is linear:
Despite this, situations occasionally arise whereby the chain diverges into several branches. Information about the addition of new blocks is distributed to the network with a delay of one second. This could be enough time for a miner who has not yet received the information that a block has been added to mine the same block:
As a result, the blockchain forks and some miners start spending resources on adding blocks to the wrong branch. The network will eventually discard it, defining the longer chain as the only correct one. In the meantime, however, some network participants will try to add blocks to the wrong sequence of blocks, negatively affecting performance.
Kaspa has no direct sequence of blocks. The blockDAG allows miners to work in parallel and, when blocks with conflicting transactions appear, they are added to a directed acyclic graph (DAG) instead of being discarded.
To prevent the same transaction from appearing in the blockchain twice, the block in which it previously appeared must be identified. This is where the GHOSTDAG algorithm comes in, bringing chaos to order by assigning indexes to blocks and using special rules:
- If block B refers to block A, then it is considered to have been created after block A and cannot be placed before it.
- The higher the number of blocks that refer to a new block, the greater its priority in ordering among the blocks created in parallel with it.
- If several blocks have the same number of "ancestors," priority is given to the block with the smaller hash.
Here's a visual representation:
Block A doesn't reference any other block and is assigned an index number of 1. Block B references A and receives an index of 2 (rule one). Block D has a lower hash than block C, so it receives an index number of 3 while C is 4 (rule three). Block E refers to two "parents," identified the moment it is created, while block F refers only to D. Using the second rule, we assign E the index number 5, and F receives 6.
Of course, we've simplified things massively, but we think it should help you better understand how GHOSTDAG works. You can visit the Kaspa Graph Inspector to see what it looks like in real-time.
This system allows miners to work in parallel, and the network doesn't need to expend resources removing invalid chains.
How much does $KAS cost?
Kaspa's native cryptocurrency, KAS, is currently being traded at a value of $0.148, and the project's market capitalization stands at $3,553,948,656.
The most important part of the story is that Kaspa is a very fast (and soon to be even faster) Layer 1 PoW blockchain. The developers' approach 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, several experts stated that they see Kaspa as the blockchain of the future.
Time will tell 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.
Kaspa Tangem Wallets: Overview and Features
Kaspa partnered with Tangem to create a limited-edition hardware wallet specifically designed for the Kaspa community. This collaboration aims to provide a highly secure, user-friendly solution for storing and managing KAS tokens and other digital assets.
Key features of the Kaspa Tangem Wallet
- Card-shaped design: The Tangem wallet is designed to look and feel like a bank card, making it highly portable and easy to use. Despite its simplicity, it offers top-level security that is often better than other hardware wallets on the market.
- Self-custodial management: Users have full control over their private keys, enhancing security and autonomy. This feature ensures that users are the sole custodians of their $KAS and over 6000 other cryptocurrencies.
- High-security standards: The wallet uses industry-leading security measures, including EAL6+ certified chips, independently-audited firmware, and open-source app code. User access is protected by biometric authentication or an access code. The monolithic plastic shell offers protection against dust, water, extreme temperatures, electromagnetic pulses, electrostatic discharge, and X-rays, ensuring its durability and reliability under various conditions.
- Easy asset Management: By tapping the card on an NFC-enabled phone, users can manage their assets through a single interface—the Tangem Wallet mobile app. This simplifies the process of sending, receiving, and tracking assets.
- Versatile and user-friendly: The wallet is designed to be accessible to both beginners and experienced users. It breaks down the barriers to entry for new users by making offline crypto storage straightforward and affordable while improving the self-custodial experience for seasoned users.
- Compatibility with Kaspa ecosystem: The wallet seamlessly integrates with Kaspa's ecosystem, allowing users to securely store KAS tokens and thousands of other digital assets. This integration supports Kaspa's goal of improving user experience and security.
Overall, the Kaspa Tangem wallet is a significant step towards providing Kaspa users with a robust, secure, and user-friendly solution for managing their digital assets. The collaboration between Kaspa and Tangem reflects our commitment to enhancing security and usability in the blockchain space.
Other Kaspa crypto wallets
Kaspa (KAS) offers a variety of wallets to cater to different user needs, including web, desktop, and mobile options. Here are some of the notable wallets:
Kaspa web wallet
The Kaspa Web Wallet is user-friendly and secure, making sending and receiving KAS easy. Users can create a wallet by visiting the wallet site, recording a 12-word seed phrase, and following the prompts. It is suitable for those who prefer a straightforward, accessible option.
KDX desktop wallet
KDX is a desktop wallet that integrates with the Kaspa full-node software. It features two modes: 'Kaspad node' for full wallet functionality and 'CPU/GPU miner' for mining capabilities. The wallet uses a 12-word seed phrase and is ideal for users who want to manage their node and mining operations through a single interface.
Kaspa command line wallet
The Kaspa Command Line Wallet offers a minimalistic and command-line-based approach for advanced users. Part of the core Kaspa node software, this wallet requires users to have some command-line experience and is best suited for crypto enthusiasts who prefer a non-GUI option.
Kaspium mobile wallet
Kaspium is a cross-platform mobile wallet currently in the test phase. It supports both Android and iOS, offering features like multiple wallet management, transaction history, address management, and biometric authentication. It uses a 24-word seed phrase and is designed for users who prefer mobile access to their funds.
These Kaspa wallets provide a range of options for different user preferences, from those who want simple web-based access to their funds to those who require robust security features in a hardware wallet.