Kaspa Price Prediction: What Is the Future Value of Kaspa?

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.