Kaspa is the fastest and most scalable instant confirmation transaction layer ever built on a proof-of-work engine. Transactions sent to miners can be included immediately in the ledger, which is structured as a revolutionary blockDAG. Kaspa is based on the GhostDAG/PHANTOM protocol, a scalable generalization of the Nakamoto Consensus (Bitcoin consensus). Its design is faithful to the principles Satoshi embedded into Bitcoin — proof-of-work mining, UTXO-formed isolated state, deflationary monetary policy, no premine, and no central governance. Kaspa is unique in its ability to support high block rates while maintaining the level of security offered by the most secure proof-of-work environments. Kaspa’s current mainnet operates with one block per second. After the ongoing rust language rewrite, the core developers goal is to increase the number of blocks per second substantially, attracting the development of smart contracts and DeFi.
SOLVING THE TRILEMMA
Traditional cryptocurrencies suffer from a security-scalability-decentralization tradeoff: decentralized cryptocurrencies must limit their block creation rate in order to limit “orphans”, off-chain blocks created during the time it takes for a latent block to be propagated across the network. A high orphan rate decreases the effectiveness of the PoW network, thus decreasing its defense against attacks from malicious actors joining the open network. To solve this tradeoff, Kaspa’s consensus layer uses GhostDAG, a proof-of-work consensus protocol that generalizes Nakamoto’s chain into a directed acyclic graph of blocks ( blockDAG). GhostDAG incorporates”orphan” blocks into the chain to form a blockDAG, and then uses a novel greedy algorithm to order the blocks such that well-connected, honest blocks are favored, quickly and with high probability. GhostDAG allows Kaspa to circumvent the traditional tradeoff of blockchains, improving on block rate by orders of magnitude while maintaining the theoretical security guarantees of Bitcoin.
This results in a cryptocurrency that is supported by 51% security, has a high number of miners / nodes, and has throughput on the order of one block per second. This is unlike existing cryptocurrencies, which inevitably trade off on having small numbers of validator nodes or lower BFT security (33% threshold needed for malicious actors to attack the network).
Traditional cryptocurrencies’ slow block rates indicate slow confirmations, i.e., the time it takes for a transaction to be published on the blockchain. Kaspa’s consensus layer supports fast, subsecond confirmations— a fast first confirmation, which enables use cases that need immediate proof of publication (but not immediate irreversibility), such as e-commerce.
Traditional cryptocurrencies’ slow block rate also indicates low transaction throughput. Using GhostDAG, Kaspa’s consensus layer removes security as a bottleneck for high throughput, allowing block rate and block size increase up to what the network can handle. Kaspa also optimizes bandwidth cost and network infrastructure for high throughput.
Traditional cryptocurrencies’ slow block rate also indicates high variance of mining income (i.e. irregular mining rewards due to the difficulty of finding a block), incentivizing miners to join larger and larger mining pools—which combine computing power and distribute smaller, more regular mining incomes to participants—as the network grows and the block difficulty increases. This centralizes the consensus power into the hands of a few pool managers. Kaspa’s consensus layer’s fast block rate decreases the variance of mining income – which decreases the incentive to join mining pools – contributing to mining decentralization.
Articles & News
Kaspa Integrated on OneKey
Open source crypto wallet. Trusted by millions. The OneKey Classic As the crypto world continues to evolve, hardware wallets like the OneKey Classic are staying on the cutting edge. This well-regarded device has just become even more helpful with the addition of...
The Kaspa Community and the Exploration of Smart Contracts
Disclaimer: Kaspa could adopt both of the options listed below and take a dual-strategy approach. Weighing options and envisioning a future with Rollups. Smart Contracts Kaspa is evaluating the adoption of Smart Contracts with the technology known as Rollups...
Kaspa on Rust: Alpha Update
A Major Technical Pruning Upgrade On-the-Fly Header Pruning In the rapidly advancing world of digital currencies, every development counts. A significant upgrade in the Kaspa network is making waves due to its potential to enhance transaction speed, reduce hardware...
The Kaspa Founding Contributors
The Architects Behind Kaspa’s Success The Creation and Vision of Kaspa The journey of Kaspa has been shaped by the collective efforts of its founding contributors. DAGLabs, a research and development company co-founded by Yonatan Sompolinsky, laid the groundwork for...
Kaspa Improvement Proposal: A Breakdown of KIP 3
A ‘Block Sampling’ technique to enhance mining efficiency and fairness by improving how difficulty levels are calculated. KIP 3 Shai Wyborski and Michael Sutton, two core contributors within the Kaspa space, have suggested a change to improve the network’s operation....
Kaspa on Rust: Alpha Update
Two to three week estimated timeline for the beta release. Kaspa on Rust The Rust rewrite, also known as Rusty Kaspa, is like a major engine upgrade for the Kaspa platform. As a result, the everyday user can expect a faster, more stable, and more secure experience....
New Exchange Listing — Uphold
Kaspa added to the global multi-asset digital trading platform. Disclaimer: At launch, Kaspa coin will be classified as a “Tier 4” asset on the Uphold platform. This categorization means that users will not be permitted to withdraw these coins to cold storage....
New Exchange Listing — Bitget
Kaspa Trading Now Live Bitget Bitget, a crypto exchange consistently ranking in the top 10, has listed Kaspa (KAS) on its platform as of 11:00 am UTC on May 9th. This listing further diversifies Bitget’s extensive range of digital assets and brings new Kaspa trading...
Kaspa: The Solution to Bitcoin
Bitcoin Buckles Under Pressure: Network Congestion and Soaring Fees. The Bitcoin Bottleneck The Bitcoin network is facing unprecedented congestion, with a staggering 390,000 unconfirmed transactions waiting for confirmation, according to Bitcoin.com. This bottleneck...
New Exchange Listing — KuCoin
Deposits for Kaspa (KAS) Open at 2 AM UTC on May 6th KuCoin KuCoin, one of the leading cryptocurrency exchanges in the world, has announced the listing of Kaspa (KAS) on their platform, with deposits now open as of 2 AM UTC on May 6th. This listing further expands...
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The wallet is managed by 4 members of the community (msutton, Tim, The SheepCat and demisrael) who were publicly voted in to become the Treasurers.