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
The block-DAG paradigm By: Michael Sutton, Core Developer This is a blog series explaining the fundamentals of Kaspa in simple and short language. I will assume the least possible prior knowledge, although some fundamentals in blockchain theory, specifically bitcoin,...
Kaspa announced today a partnership with Flux (https:www.runonflux.io), a leading provider of decentralized cloud solutions, to launch Kaspa network nodes on their cloud infrastructure. Launching the Kaspa network on Flux's decentralized and reliable node...
We are pleased to announce that Kaspa has yet again successfully completed a community funding proposal to be listed on a soon-to-be named top-tier exchange. A funding pool of $50K in USDT was established on August 23rd, 2022 and was advertised on Kaspa's discord and...
Looking Back Where to even start! So much has happened in the Kaspa project since the launch of the main-net in early November 2021. We are steadily building a vibrant and strong community as investors, developers and people, from around the globe, are...
Starting in July, the Kaspa development team, led by Michael Sutton, has undertaken an effort to rewrite Kaspad in Rust. This codebase rewrite will allow Kaspa to be in a "Space Code" system and reach maximal BPS and TPS through a high-performance well-designed...
BY: Yonatan Sompolinsky This is a concrete version of a longer post which I started writing but had too much spare time so didn’t complete yet.Context: One of Kaspa’s core devs, Michael Sutton, suggested a plan to order-of-magnitude enhance Kaspad full-node...
Shai (Deshe) Wyborski (if you are unfamiliar with Kaspa you are still welcome to read the post, or you can first check out our website and Discord server) It is astonishing to see how fast the Kaspa community is growing. But as Kaspa gains more traction and...
First and foremost I wanted to thank you all for joining and forming this community, for the interest, excitement, and involvement around the project. Seeing my PhD obsession — POW DAG consensus — realize itself into a live network and a spontaneous community is...
Yonatan Sompolinsky launch Kaspa in gamenet mode, a research oriented experimental network inject deliberate fragility into Kaspa launch via random semi-scarce monetary policy construct battlefield for reward-based and MEV-based reorgs as community matures and...
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