A new blockchain begins to warm up.
Through opening a research thread about a different project, not very propagandist, that has been cooking for a long time in a very, very slow fire, working in silence, that can also benefit from the space left by ethereum in mining under the PoW consensus protocol, and seeing that in this thread were Adam Back, Hans Moog and the CEO of Solana following and participating actively in a direct communication, the success is not assured, but predestined.
If I talk about Layer 1, DAG and PoW, you may not be very interested, especially if you are not familiar with certain concepts and have not done deep research in cryptography. Let’s take a look at a project I have researched. Its founders have been working on DAGs since 2011 and have also developed their own consensus, the Ghost DAG Protocol, which they have successfully implemented. Here I’m sure I’ve already piqued your interest a bit more.
Research led me to detect that the founders are listed in the Ethereum whitepaper, the token is not yet listed on any top-tier exchange for the time being and neither has it been available for purchase until just 4 weeks ago (that is if you can mine it directly, thanks to being PoW), the thing gets more intense.
Its fully diluted capitalization is only $10 million (Max Cap 28.5 billion tokens), which is extremely low for the CAP that this project can achieve in a recovering market, as it is currently in a pre-deflation phase, i.e. rewards are currently being distributed in each block increasing until there are approximately 7.88 billion tokens (in about 4 months), after which the rewards per block will be decreasing linearly.
If we add all these concepts together, we are talking about Kaspanet.io, a network that seeks to provide instant confirmations to a PoW protocol, thanks to sequencing transactions by sending them to a ledger that is structured as a blockDAG to support asynchronous status updates. Kaspa is based on the PHANTOM protocol, a scalable generalization of the Nakamoto Consensus, its initial design being faithful to the principles that Satoshi incorporated into Bitcoin: proof-of-work mining, isolated state formed by UTXO, deflationary monetary policy, no premining and no central government.
Kaspa is unique in its ability to support high block rates while maintaining the level of security offered by working test environments. Kaspa’s current test network operates at 1 block per second.
It’s all supported by several university PhDs, which support and identify that PoW can become an agile Internet service, if done correctly. In addition to achieving fast confirmation times, high block times reduce the variance of block rewards, reduce the need to join mining pools and contribute to decentralized mining.
The Kaspa consensus is designed to address what are believed to be the key challenges for the second decade of cryptocurrency. As the technology matures and its adoption and integration with other web applications gains momentum, two main vectors are identified as requiring a major overhaul of the base consensus: speed of transaction inclusion in the ledger and control over transaction ordering in the ledger.
Providing instant confirmation is a trivial task, if one is willing to compromise the principles of decentralization or has operated under strong assumptions about network topology with minimal security margins. Kaspa has taken the difficult path of designing a system based on the paradigm, and Satoshi’s first principles. While Bitcoin is becoming the ultimate Internet reserve asset, there is predictably still demand, and urgent demand, for an implementation of Satoshi’s original vision: a peer-to-peer electronic cash system.
Since transaction ordering is the main challenge of any consensus protocol, Kaspa’s base layer is focused on becoming a fast and scalable transaction sequencing engine (aka proof-of-publication). Therefore, the base consensus will maintain the state of payments only (aka the UTXO set), while computation will delegate Layer 2 operations.
Ethereum (which are creating accumulations and focusing on rollups), will fragment the network, hinder composability and drastically change the underlying dynamics.
In closing, the triggers that prompted me to dig deep and seriously consider this project for the medium term were 2:
Kaspa is able to process in 1 minute what bitcoin processes in 10 hours. My forecast for its tokenomics and the momentum it can experience by being listed in the large CEX is that its price in 2 years will grow by 1,000%.
For my part, I can be proud that Belobaba is one of the few Crypto Asset Managements that has been able to accumulate 1,000,000 KAS tokens, at a price of $0.00024 as shown in the image. The road is made by walking and ours with this fellow traveler has just begun, “great things are coming”
I always recommend to keep researching and create your own criteria based on data. To help you in that mission I share with you all the links of interest that I have been able to find, enjoy them.