Why Kusama is one of the most undervalued coins right now!
Kusama is considered the wild cousin of Polkadot. It started out as an experimental network for Polkadot. The primary intention was to use Kusama for early deployment of possibly unaudited code and also to move faster. Kusama is 4 times faster than Polkadot. However, Kusama has come a long way since then. The two networks have diverged enough to be considered as separate chains. Slowly it is turning out that the 2 networks might serve two different purposes.
Polkadot is more suited for the Enterprise networks and networks that need more security, like Decentralized Finance. Arguably, it is also more bug resistant. Kusama is more censorship-resistant, art and cyber-punk-friendly. Keeping this in mind we see that none of the 2 networks are absolute and they will complement each other. The 2 strong service pillars of Blockahin currently are Decentralized Finance and Non Fungible Tokens. Decentralized Finance will move towards Polkadot and NFTs will move towards Kusama.
This only means that in spite of being 2 separate networks, Kusama is still under the shadows of Polkadot. Also Gavin Wood does not do hype marketing. (In a recent AMA, Charles Hoskinson, CEO of IOHK, said that when the original Ethereum founders separated, both Gavin and Vitalik stood for technology and values and not for bringing in corporate oversight.)
The upcoming parachain auctions are one of the top events of 2021. Kusama Parachain auctions are going to happen earlier than Polkadot. Important projects like Karura (Sister project of Acala in Kusama network) are launching in Kusama which will then be bridged to the Polkadot Network. Also, NFT Projects like RMRK are planning to stay in Kusama. I do not think many people understand this, yet. I have seen people still struggling to create a polkadot.js wallet and also get their Kusama transferred.
The knowledge curve is high, but people will eventually get there and there is an active flow of people in the network.
What people also need to understand is that projects like Karura are not launching their tokens via IDO etc. Tokens will be rewarded to people who will bond their Kusama with them. This will help them win the parachain auction.
Kusama is a live network with real economic incentives. This serves 2 main purposes. It will prove an additional proving ground for parachains. The community can observe network effects and conduct testing and upgrades. This will help them to be prepared during the Polkadot Parachain auctions. For the projects exclusive to Kusama, it's their time to win a parachain or become a parathread. The Kusama governance will play a major role. It will first vote to enable parachain functionality. It will then vote to begin slot auctions.
Parachain Slot Auctions
Kusama will conduct non-permissioned candle auctions for slot allocations. Candle auctions are auctions where bidders submit higher prices. The highest bidder at the conclusion of the auction will win it. The end time of the auctions will be decided by a randomly generated number. Starting with the first auction, the auctions will continue to run on a rolling basis. There will be a gap of roughly 2 weeks between auctions. The winning parachain of an auction will be deployed to the network at the beginning of its lease period.
This shows that Kusama auctions will have the same intrinsic values as Polkadot auctions. They will follow the same principles and the intensity and focus will be the same, if not more. Also, Kusama is 4x faster. Yes, being the first auctions, there is a chance of failure, however, the rewards associated are very high. Kusama is currently very undervalued in Market Cap, compared to Polkadot. By buying such an undervalued coin and bonding them with a project, you can easily earn the Project’s native token as a reward.
In my next article, I will talk about how Acala (Karura in Kusama) plans to onboard in Kusama.
Read the Previous article: How to play Dark Forest, the zkSNARK powered MMO Game — Part 1
Note: This post was first published here for Cryptowriter in association with voice.com.
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