Kaspa crypto emerges as a groundbreaking decentralized and open-source cryptocurrency, offering a Layer-1 solution to address the fundamental challenges faced by traditional blockchains. Founded on the principles of scalability, security, and decentralization, Kaspa introduces innovative technologies such as the GHOSTDAG consensus mechanism and a unique monetary policy. With a strong community foundation and a commitment to open governance, Kaspa aims to revolutionize the crypto landscape while staying true to the principles laid down by Satoshi Nakamoto. The KAS token price chart in the last weeks was bullish with a very positive outlook. Read our Kaspa crypto price prediction to see if it’s the right time to invest in the token.
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Kaspa Fundamental Analysis
Kaspa is an innovative decentralized and open-source cryptocurrency that aims to address the long-standing challenges of scalability, security, and decentralization faced by traditional blockchains. Founded in 2021 by Yonatan Somplinsky, the project introduces a unique Layer-1 solution built on the GHOSTDAG protocol. By leveraging this cutting-edge consensus mechanism, Kaspa offers unprecedented speed, scalability, and security while staying true to the principles embedded in Bitcoin.
The founder, Yonatan Sompolinsky, is a Postdoc CS researcher at Harvard University, known for his work on the MEV Research Team. Yonatan's 2013 paper on the Ghost protocol is referenced in the Ethereum Whitepaper. The Kaspa project benefits from the expertise and contributions of core developers and contributors such as Shai Wyborski, a Cryptography Doctoral student, Michael Sutton, a CS Master graduate, Mike Zak, a CS Undergrad, Elichai Turkel, a Cryptography researcher, and Ori Newman, a Developer. Their efforts have played a crucial role in implementing and stabilizing the Kaspa network.
Kaspa prides itself on being the fastest and most scalable instant confirmation transaction layer ever built on a proof-of-work engine. Unlike traditional blockchains, Kaspa utilizes the GHOSTDAG consensus protocol, which allows parallel blocks to coexist and be ordered in consensus. This groundbreaking approach enables Kaspa to overcome the traditional trade-off between security, scalability, and decentralization, thereby improving block rates while maintaining the security guarantees of Bitcoin.
GhostDAG is the consensus mechanism that Kaspa currently utilizes and improves upon the PHANTOM consensus. PHANTOM requires solving an NP-hard problem, and is not suitable for practical applications on its own. Instead, the Kaspa team uses the intuition behind PHANTOM to devise a greedy algorithm, GHOSTDAG, which can be implemented more efficiently.
GHOSTDAG, the consensus mechanism used by Kaspa crypto, ensures secure block ordering that becomes increasingly difficult to reverse as time progresses. When two transactions, tx1 and tx2, are published and embedded in the blockDAG at a certain point in time, the probability of GHOSTDAG changing the order between tx1 and tx2 decreases exponentially as time passes. This holds true even with a high rate of block creation, which is significant compared to the network's propagation delay, assuming that the majority of computational power is controlled by honest nodes.
Kaspa introduces a revolutionary blockDAG (Directed Acyclic Graph) structure to solve the limitations of linear blockchains and Nakamoto consensus. Unlike traditional blockchains, blockDAGs allow blocks to reference multiple predecessors and incorporate blocks from different branches. This approach eliminates wasted or orphaned blocks, maximizes transaction throughput, and facilitates almost instant confirmations.
Kaspa utilizes a method called pruning to reduce the size of the blockDAG, preventing nodes from needing to store extensive amounts of blockDAG data. Thanks to this pruning mechanism, each decentralized machine in the Kaspa network only needs to store approximately three days of historical data. This efficient storage requirement enables the creation of numerous nodes without significant storage constraints.
The pruning mechanism employed by Kaspa is unique to its blockDAG and GhostDAG consensus method. The goal was to develop a pruning algorithm that is resistant to attacks from an attacker controlling 49% of the network's computational power. To achieve this, Kaspa incorporates the concept of finality and employs specific invalidation rules within its design approach.
Kaspa is committed to being a community-driven project, aligning with the ethos of renowned cryptocurrencies like Bitcoin, Litecoin, and Monero. The project was fair-launched, without any pre-mining or pre-allocation of coins, ensuring equal opportunities for all participants. Emphasizing decentralization, Kaspa remains completely open-source with no central governance, allowing anyone to contribute and help secure the network.
Kaspa crypto incorporates a distinctive monetary policy that implements a geometric decrease in emissions over time, inspired by the 12-note scale of music. This innovative approach, known as the chromatic phase, was activated on May 7th, 2022, with an initial block reward of 440 KAS. The block reward undergoes a smooth halving process once per year, with a reduction factor applied every month according to (1/2)^(1/12). Remarkably, this reduction ratio precisely corresponds to the frequency ratio of two consecutive semitones in a tempered chromatic scale. The initial block reward represents the frequency of the note A4, and each averaged year is aptly referred to as an octave in this context.
To secure the network, Kaspa utilizes the optical-mining-ready kHeavyHash algorithm, a modification of the SHA-256 hashing algorithm with a weighting function. This combination ensures robust network security while consuming less energy compared to other proof-of-work networks. Kaspa's security principles and methodology remain aligned with Bitcoin, instilling trust and confidence in the system.
KAS is the native currency of the Kaspa project, serving as the primary medium for on-chain transactions and mining rewards distribution. Unlike typical tokens, KAS operates as a Layer-1 coin, solidifying its role as an essential element within the Kaspa ecosystem. The token has a total supply of 28,704,026,601 KAS, and as of July 2023, there are 19,693,492,047 KAS in the current circulation.
Kaspa Live Price Chart
The price of KAS token was quite stable from July 2022 till almost the end of the year. From the middle of summer and till the end of September, the KAS price chart was growing, increasing from 0.002429 at the beginning of August to 0.004752 by the end of September. Even after the KAS price chart was moving rather peacefully, slowly decreasing to the level of $0.001783 by the end of October.
In the following month, the price of KASPA showed more gains with the price chart reaching 0.009425 by the end of November. After this milestone, the trend changed again and was declining till the end of the first week of 2023. On January 7 to buy KAS traders paid 0.0045, as the price declined by over 50% in the last month.
But in the next few months, the price of KAS made a major achievement as it kept growing ever since the beginning of January till the beginning of April. By that time the value of the KAS token reached $0.03. That was the highest point of the period and KAS couldn’t maintain such a high price level anymore, and till the end of May, the value of the Kaspa native token was continuously declining. On May 23 to buy KAS traders paid only $0.013, and then the trend flipped again and KAS started growing in value again.
On May 27 the price of KAS went up to $0.018, but then was corrected to $0.0155. but from June 12 the token established a new strong uptrend and started to grow in value significantly. On June 24 to buy KAS traders already paid $0.026. In the next 2 weeks, the price chart got corrected again with the value of KAS going down to $0.02. After this correction, the Kaspa coin price chart started growing at an even faster pace and reached $0.032 by July 16.
According to the KAS price chart analysis, the token still has a positive outlook, and market experts making the Kaspa coin price prediction think that the KAS token price can gain even more value in the near future.