Available translations provided by the Kaspa community:
- Chinese Version — — KASPA: 一个真正的点对点电子现金系统
- Russian Version— — KASPA: Настоящая система электронных денег от точки к точке
- Spanish Version— KASPA: Un Verdadero Sistema de Pago Electrónico Entre Pares
Bitcoin is failed, it resembles more of a scarce asset than a Peer-to-Peer Electronic Cash System. While ETFs tied to Bitcoin are coveted globally, financial giants like BlackRock have not aligned these funds with the vision of a cash system.
The crux of Bitcoin’s narrative lies in its Achilles’ heel: scalability. Its sluggish transaction processing undermines its practicality as a daily cash system. Consider buying coffee — with a card, it’s a swift swipe and sip experience. In Bitcoin’s realm, you’d face a tedious wait, as transactions crawl, with blocks generated every ten minutes.
Exploring the blockchain universe reveals scalability as its central hurdle. Bitcoin, lauded for its security, is painfully slow. Ethereum, despite its soaring popularity, battles network congestion and exorbitant fees. Bitcoin Cash, aiming for speed with larger blocks, compromised security, driving miners back to the original Bitcoin.
Scalability is the blockchain’s Archimedean point — the fulcrum poised to reshape the financial world. Striking a balance that upholds security and decentralization is key. Achieving this could unlock the full potential of digital currencies, realizing the dream of a true peer-to-peer electronic cash system.
// Chapter I: GHOSTDAG and POW, Answer to Scalability
In the realm of blockchain, scalability was a labyrinth waiting to be unraveled. Enter Yonatan Sompolinsky, who swung open the doors to a new dimension of Proof of Work’s potential.
Back in 2013, Yonatan, alongside his mentor Aviv Zohar, pioneered the GHOST protocol, challenging Bitcoin’s ‘longest chain rule’. Envision Bitcoin as a one-dimensional line, stretching out every ten minutes. GHOST transformed this linearity into a multi-faceted plane, where numerous lines branch out in unison, creating a more efficient two-dimensional space.
As Ethereum began to take shape under the guidance of Vitalik Buterin, it was influenced by the ripples of GHOST’s innovation. Ethereum adapted a variant of GHOST, acknowledging its potential.
Advancing further, 2016 witnessed Yonatan and Aviv refining this vision with GHOSTDAG. This new protocol tackled sequence intricacies, conceptualizing the blockDAG as a directionless network, bustling with swift, concurrent transactions. Imagine the blockDAG as a busy intersection without traffic signals, where vehicles decide when to go, leading to potential chaos and slowdowns. In contrast, GHOSTDAG is like an intersection equipped with a sophisticated traffic light system, directing the flow of vehicles in a coordinated and orderly manner, significantly improving speed and reducing congestion.
Shai Wyborksi later joined this visionary team, ironing out imperfections and fortifying GHOSTDAG’s security foundations. In 2021, this groundbreaking work was showcased at the Advances in Financial Technologies (AFT) conference, marking a significant milestone.
GHOSTDAG, thus, stands as a monumental solution to POW’s scalability puzzle, enhancing the network’s capacity for handling a multitude of transactions, all while steadfastly preserving security and decentralization. It’s a narrative of technology meeting innovation, of opening new horizons in the blockchain saga.
// Chapter II: KASPA & SILVER, Redefining Speed in Crypto
In ancient Aramaic, ‘KASPA’ means ‘SILVER’, a metal historically overshadowed by gold, yet more common in daily transactions. This analogy aptly reflects Kaspa’s role in the digital realm.
Kaspa’s story began in 2018 with the formation of DAGlabs, led by Yonatan Sompolinsky and supported by an $8 million investment from a crypto venture capitalist. This significant financial boost accelerated research and development activities. The team’s creativity and technical prowess led to the integration of cutting-edge components into a blockDAG architecture. Their objective was to mirror Bitcoin’s foundational elements — Proof of Work (PoW), blocks, UTXOs, and transaction fees — all while being driven by the revolutionary GHOSTDAG protocol.
Come November 2021, Kaspa’s mainnet was unveiled, untainted by pre-mine, pre-sales, or coin allocations, marking a new chapter. Following the dissolution of DAGlabs, its alumni pivoted to nurture Kaspa, driven by community engagement and grants. Embracing Bitcoin’s ethos, Kaspa thrives without a fixed team or roadmap — a testament to its enduring commitment to decentralization.
A significant breakthrough occurred on the 14th anniversary of Bitcoin’s whitepaper in October 2022. Yonatan and Michael Sutton introduced the DAGKNIGHT protocol, a revolutionary consensus mechanism poised to dramatically accelerate transaction speeds and confirmations. This innovation established Kaspa as a top Layer 1 PoW coin.
Kaspa, the first-ever blockDAG, is transforming blockchain technology. It shatters conventional limits, offering unparalleled speed, scalability, and security while steadfastly maintaining decentralization. Operating at an impressive 1 BPS (Blocks Per Second) and 300 TPS (Transactions Per Second), the advent of DAGKNIGHT promises to catapult these figures to 100 BPS and 30,000 TPS. Kaspa is on track to become the ‘silver of crypto’, challenging and potentially surpassing traditional fiat transaction speeds, and redefining the future of digital transactions.
// Chapter III: ASIC & KASPA, Real-World Assets Backed
In 2020, Yonatan reshaped the PoW mining landscape with his innovative approach to ASICs. He envisioned ASICs as more than just hardware; he saw them as crucial stabilizers within the mining ecosystem. In his view, owning an ASIC was akin to buying a home in a city — it transformed miners from mere passersby to integral, committed members of the community. This shift in perspective elevated the role of ASICs in forging a more stable and robust mining environment.
November 2021 heralded the start of Kaspa’s GPU and FPGA mining era, witnessing its hash rate skyrocket from zero to over 1 PH in just 18 months. But June 2023 was a game-changer, ushering in the ASIC epoch. ICERIVER, an emerging name, unveiled their 12-nanometer miners, boasting a staggering 2T hash rate, and kickstarting a hash rate revolution in Kaspa’s history.
Kaspa’s hash rate story unfolds with exhilarating milestones: reaching 3 PH in July, escalating to 15 PH by August, and achieving a remarkable leap to 30 PH in September, marked by the launch of Bitmain’s KS3 units with 8.3TH and 9.4TH capabilities. October saw the addition of another player, TheWindMiner, further boosting the hash rate past 50 PH. The narrative continued in November when ICERIVER’s custodial service propelled the hash rate to a staggering 100 PH, as more miners entrusted their operations to these seasoned experts.
This journey transcends mere numbers. It symbolizes Kaspa’s commitment to decentralization and democratizing blockchain wealth. ICERIVER’s KS0 miner stands as a testament to this decentralization. Shai Wyborksi’s calculations indicate that with a total network hash rate of 100 PH, a KS0 with 100G hash power can achieve block generation in just 36 hours — a time now even shorter for the 200G KS0 Pro. This implies a significantly lowered barrier to entry for miners (with the KS0 priced at only a few hundred dollars), and it also signifies the decentralization of Kaspa’s mining community.
Within just two years, Kaspa’s rise to become the second most profitable mining coin, outpacing LTC and trailing only behind BTC, is a narrative of success. This triumph isn’t just about Kaspa’s growth; it represents the global mining community’s faith in its potential, mirroring the collective strength and trust in Kaspa’s future.
// Chapter IV: Payments & Merchants, Shop Globally with Kas
Kaspa’s allure extends far beyond its technological feats, embodying a transformative force poised to reshape the financial landscape. From Wall Street’s finance giants to local bustling shops and diverse online stores, Kaspa signals a blockchain-led revolution in finance.
On November 15th, 2022, a pivotal moment unfolded when Brand 425, a Texas coffee shop, became the world’s first merchant to accept $KAS payments. Like a modern-day pioneer, Brand 425 ventured into new territory, reminiscent of the adventurous spirit of the Texas oil rush, exploring blockchain’s potential in payments.
February 2023 marked a pivotal moment as CryptocurrencyCheckout integrated Kas, offering Kaspa enthusiasts a streamlined, address-free payment method. This was a significant leap from the conventional payment processes.
May 2023 witnessed CoinPal.io, accredited with EU and Asian cryptocurrency licenses, embracing Kas. This move highlighted the increasing acceptance and recognition of Kaspa within compliant payment networks.
The tide of Kas adoption rapidly flowed into the merchant sector, withvarious businesses through CoinPal.io beginning to accept Kas payments.Leading the charge were IGV, the world’s largest gaming account tradingplatform, boasting 6 million users, and Xtrend, a top-tier online trading platform in Europe regulated by FSCA and the regional sponser of AFA (Argentine Football Association). Their early adoption reflected the growing faith in Kas as a viable payment medium.
August 2023 saw further expansion of the Kaspa ecosystem when Nowpayments, a renowned cryptocurrency gateway, integrated Kas. This widened access to a variety of services, including payments, exchanges, and node operations.
On November 16th, Uphold exchange introduced a Debit Card enabling Kas deposits, marking Kaspa’s foray into offline spending. The very next day, a monumental $1 million campaign for Kaspa was rolled out by OKX, in partnership with CoinPal, ICERIVER, and IGV. Achieving an extraordinary feat of 100,000 address transfers in a single day, this initiative powerfully demonstrated Kaspa’s capacity for managing swift, real-time transactions, emphasizing its practicality and efficiency.
This unfolding story of blockchain as a transformative force is more than just a narrative; it’s a reality. The growing involvement of payment providers and merchants in adopting Kas signifies a clear endorsement, collectively illustrating to the world the viability of Kas as a payment option. This evolution is not just a technological shift but a leap towards a future where Kaspa redefines global financial transactions.
// Chapter V: Community & Technology, True Driving Forces of the Future
At the forefront of blockchain innovation, Kaspa’s technology addresses numerous challenges. However, it’s the collective efforts of everyday individuals, each bringing their unique perspectives, that truly propel Kaspa. In this community, every opinion matters, every vote counts, and every decision shapes the future.
Take Kaspa’s Rust upgrade as an example: Rust, renowned for its robustness in systems programming, has the potential to greatly enhance Kaspa’s speed, possibly even surpassing VISA’s transaction processing speed (TPS). However, rewriting Kaspa in Rust is a colossal undertaking, akin to rebuilding a skyscraper on its original site.
In early 2022, a group of passionate tech enthusiasts proposed a bold plan to rebuild Kaspa using Rust. This idea quickly sparked widespread discussions and debates about decentralization on platforms like Discord, Twitter, Reddit, and Telegram. In the spirit of democracy, the Rust proposal was put to a community vote. After intense discussion, a carefully crafted draft was presented in the Discord ‘#votes-channel’, and within 24 hours, it received overwhelming approval.
The next phase was crowdfunding. Moderators broadcasted a call-to-arms in the Discord #funding-pools channel, outlining mission specifics, bounty details, funding duration, and a contingency plan if the funding fell short.
The Kaspa public development fund, primarily supported by crowdfunding contributions, was meticulously managed by the Rust Committee. This multi-signature wallet approach ensured transparent and accountable fund management. Those interested in tracking Kaspa’s progress can turn to the Kaspa Explorer for real-time updates, highlighting the inherent transparency of blockchain technology.
Rust’s story is not unique. In the spring of 2023, a Gate.io crowdfunding campaign for Kaspa saw community members rally together, contributing not just cryptocurrencies but also marketing strategies and moral support. This united effort raised 50,000 USDT, leading to Kaspa’s successful listing on Gate.io on March 22nd. Later in the year, on October 31st, a crowdfunding initiative for Ledger integration saw its target met within an astonishing 29 minutes, thanks to the community’s support.
Behind each milestone of Kaspa lies the invaluable contributions of individual. In September 2023, Bubblegum authored ‘The Book of KASPA’, launched on Amazon, which became a bestseller and educated many about Kaspa. In October 2023, the Community Marketing Fund (CMF), spearheaded by Rubarbarian, was established, playing a pivotal role in exploring Kaspa’s market potential.
Undoubtedly, Kaspa’s technology is cutting-edge, but it’s the people behind it who are the real catalysts. This includes not only global experts like Yonatan but also every tech-loving community member active on social media. United by a passion for technology and a desire to change the world, they come together as the driving force behind Kaspa’s ongoing success and evolution.
Compared to Bitcoin, Kaspa is still in its infancy, with a long journey ahead. As Kaspa undergoes the DAGKNIGHT upgrade, matching traditional finance in blockchain BPS for the first time, questions linger: When will smart contracts be realized? How can we build a unique Kaspa ecosystem to truly become an Electronic Cash System? Kaspa faces not just opportunities but also immense challenges.
Yet, I choose to believe in Kaspa’s future, Because Kaspa has already traversed its darkest hour. Drawing inspiration from Winston Churchill, ‘This is not the end, it is not even the beginning of the end, but it is, perhaps, the end of the beginning.’ The dawn of Kaspa’s miraculous era is just on the horizon.
In the creation of this article, I extend my heartfelt thanks to @BubblegumLtng, @Kaspa_HypeMan, @fishtuna and @plzsats for their guidance. Special appreciation goes to @BubblegumLtng , whose keen insights corrected many of my errors and imparted new knowledge to me.
Additionally, I am grateful for the valuable advice and encouragement from
@DesheShai , @elldeeone , and @k_god9、@bitmo_tsumidoki、@MHiesboeck、@Yogeshpatel_999、@1000xgemxcoin 、@6M_Nick、@LiXianyu4869 . Your support has been a tremendous driving force for my continued collaboration.
I’m Mahone, the author. Follow me on Twitter @0x2080 for more updates and discussions!