Kaspa Coin (KAS): What is Kaspa Blockchain? How Does it Work?

What is Kaspa Blockchain?

Kaspa is the layer1 blockchain network that works based on the traditional Proof-of-Work (PoW) mechanism. But, the noteworthy feature of Kaspa that is enabling its scalability is something else. In addition to working based on the Proof-of-Work consensus mechanism, Kaspa has the BlockDAG (Block Directed Acyclic Graph) architecture at its core.

The project is inspired by the original Bitcoin blockchain and maintains most of its fundamental characteristics. Since the blockchain was launched in 2021, the Kaspa blockchain emerged to be a prominent project in the industry.

With the announcement of Kaspa wallet integration with CryptoWallet.com and the recent listing of KAS tokens on Changelly boosted the KAS coin price. The adoption and usage of its ventures, from blockchain, mining, KAS coin, to Kaspa wallet is gradually increasing over the years.

How Does the Kaspa Blockchain Work?

The Kaspa blockchain was designed and launched by an R&D company, DAGLabs, combined with PolyChain. It works based on GHOSTDAG protocol which ensures that blocks that are mined in parallel, co-exist in the network. The process of not discarding blocks that are mined simultaneously is known as, what we mentioned before, BlockDAG.

When it comes to traditional PoW-based blockchains like Bitcoin, several nodes spread across the world, mine blocks at the same time. But, the Bitcoin blockchain architecture is such that when 2 blocks are mined in parallel, only one will be accepted.

However, this is not the case when it comes to Kaspa blockchain. With the help of GHOSTDAG protocol, it accepts all the blocks that are mined in parallel and ensures that they are added to the network in order.

Apart from its BlockDAG architecture, other noteworthy features of Kaspa blockchain are reachability, block data pruning, and Simple Payment Verification (SPV) proofs. Unlike traditional blockchains that require nodes to download the entire ledger to validate transactions, Kaspa allows users to verify blockchains without downloading the ledger.

The Kaspa blockchain is able to validate one block per second but is aiming to operate at higher rates like 10-100 blocks per second. Its subnetwork support enables developers to build layer2 blockchain networks as well, allowing other projects to leverage its features.

Kaspa Coin (KAS): The Native Token of Kaspa Blockchain

The Kaspa Coin, also known as KAS, is the native token of the Kaspa blockchain project. New KAS tokens come into circulation through the process of mining since the Kaspa works based on PoW. With the help of BlockDAG architecture and the faster block validation rates, users can also participate in the solo mining with low hash rates.

Similar to Bitcoin tokenomics, the Kaspa coin also has a limited supply of 28.7 billion and the mining rewards are reduced by half every year. With the increasing adoption of the blockchain and its tokens, The KAS token price witnessed more than 98,000% overall growth since its launch. You can buy Kaspa coins on exchange platforms such as KuCoin, MEXC, Bybit, MEXC, Bitget, Gate.io, and others.

Why is Kaspa Called the Next Bitcoin?

While Bitcoin works on the most secure PoW, it struggles with scalability. Other blockchains, including Ethereum, started using the less energy-intensive Proof-of-Stake consensus mechanism, its security is questionable. However, the Kaspa blockchain achieved scalability while working based on the Proof-of-Work consensus mechanism.

The Kaspa blockchain is often referred to as the advanced Bitcoin blockchain, highlighting the similarities between the two. Major similarities include Proof-of-Work consensus mechanism, halving events, and limited token supply. By addressing the scalability issue of Bitcoin, Kaspa took a step further and is emerging as the advanced and scalable blockchain in the industry.