What is Kaspa?

Kaspa is an open-source, decentralized, and fully scalable Layer-1 blockchain protocol. Unlike traditional blockchains, Kaspa uses the GHOSTDAG protocol, enabling multiple concurrently created blocks to coexist and be ordered by consensus. This technology enables Kaspa to have extremely high transaction throughput and instant confirmation capability, making it known as the fastest Proof of Work (PoW) blockchain in the world.

Image:https://kaspa.org/

Kaspa’s unique technology

1. GHOSTDAG Protocol

Kaspa uses the GHOSTDAG protocol (an extension of PHANTOM), which is an improvement on Nakamoto consensus. Traditional PoW blockchains, due to longer block intervals, are prone to orphan blocks, which can impact block finality and security. GHOSTDAG allows multiple blocks to coexist and sorts them using a unique algorithm, thereby enhancing the network’s throughput and security.

2. High throughput and instant confirmation

Kaspa’s current mainnet block speed is 1 block per second, far exceeding Bitcoin’s 1 block per 10 minutes. In the future, the development team plans to refactor the code using Rust language to increase block generation speed, further supporting smart contracts and DeFi ecosystem.

3. Decentralization and Miner Friendliness

Kaspa adopts the Fair Launch model, launched in November 2021, with no pre-mining, no pre-sale, and no special allocation for teams or foundations, entirely community-managed. Kaspa’s blockDAG structure supports faster block generation, reducing the instability of miner income, enabling low-hashrate miners to effectively engage in Solo Mining, thereby reducing the centralization issue of large mining pools.

How does KAS solve the blockchain trilemma?

Blockchain technology often faces the trade-offs between security, decentralization, and scalability, known as the “Blockchain Trilemma.” Kaspa has achieved a breakthrough in this dilemma through GHOSTDAG.

• Security: Kaspa still follows Bitcoin’s 51% attack protection mechanism to ensure the strong security of the PoW network.

• Decentralization: Low-hashrate miners can still effectively compete for block rewards, reducing pool monopolies and increasing the fairness of mining.

• Scalability: Compared to traditional blockchain, Kaspa allows for higher block rates without compromising security.

Kaspa’s tokenomic model and market performance

• Maximum Supply: 28.7 billion KAS
• Circulating Supply: 25.84 billion KAS
• Market Cap: $15.7 billion (as of March 11, 2025)
• Production reduction mechanism: Kaspa adopts a smooth issuance model that halves its supply every year, with the monthly supply decreasing by 1/12 (1/2 to the power of 1/12).

This model is similar to Bitcoin halving every four years, but Kaspa adopts a smoother monthly reduction method, which helps reduce supply shocks and makes the coin price more stable.

Image:https://kaspa.org/tokenomics/

Recently, Kaspa has been falling with the overall market trend, with the current price around $0.06 and a market cap of around $15.7 billion (as of March 11, 2025). There has been significant volatility recently, so please trade cautiously and be aware of the risks. Click to trade:https://www.gate.io/trade/KAS_USDT

Kaspa mining development history

• CPU mining phase (November 2021): Kaspa’s early stage can fully utilize CPU mining.

• GPU Mining Phase (December 2021 - April 2023): The first open-source GPU mining software developed by community members, and GPU mining becomes mainstream.

• FPGA mining phase (early 2023): FPGA mining is gradually rising, but the specific timing is unclear.

• ASIC mining phase (April 13, 2023): IceRiver company releases Kaspa-specific ASIC mining machine, significantly improving mining efficiency.

The future development of Kaspa

Kaspa is undergoing a Rust language refactor with the goal of significantly increasing block speed to support smart contracts and DeFi ecosystems, further expanding blockchain application scenarios. In addition, Kaspa also plans to improve the performance of high-throughput blockchain by optimizing bandwidth costs and network infrastructure, making it the fastest and most decentralized PoW trading platform.

Conclusion

With innovative technologies such as GHOSTDAG, blockDAG, and fair launch, Kaspa has achieved a high-speed, decentralized, and scalable proof-of-work blockchain. Whether you are a miner or an investor, Kaspa provides a blockchain ecosystem worth paying attention to. With the completion of the Rust language refactoring and the expansion of the ecosystem, Kaspa may become the leader of a new generation of PoW blockchains, bringing a true breakthrough to the blockchain world.