Kaspa - A New Name In The World Of Layer 1s
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New Blood
Over the past year or so I have often hinted at the idea of new layer 1 blockchains becoming a lot more prevalent, and even providing a level of competition for existing chains such as NEAR Protocol and Avalanche. I have simultaneously also mentioned that I am no longer interested in Ethereum, as an investment vehicle. I had a good run with ETH and am happy to move on to other ideas. I am not really concerned about the “king of smart contracts” status that Ethereum seems to have. It’s inconsequential when it comes to a good trade.
A good trade comes down to a solid project that is somewhat undiscovered and still has a relatively small market cap. In my opinion, this could very well be Kaspa! In taking a closer look at Kaspa I discovered that it falls into the category of fairly launched Cryptocurrencies. Now, this is something that I have also addressed numerous times. I believe that coins that fall into this category are going to be sought after by investors in the coming years. This has been part of my fascination with projects like Ravencoin.
Other coins that fall into this category are Bitcoin, Litecoin, Monero, and now of course, Kaspa. I have been eyeing Kaspa for a number of weeks, or even months now. I finally decided to check it out, and am really glad I did. Discovering another fairly launched Cryptocurrency that is also a layer 1 is something rather appealing to me, as I believe we need some new blood, and a superior launch puts Kaspa in a very strong position, in my opinion. No ICO and no premine always get my attention.
What Is Kaspa?
Kaspa is a blockDAG built on a Proof-of-Work protocol, which is a first, especially for layer 1s. The Proof-of-Work protocol is known as the GHOSTDAG protocol. GHOSTDAG does not orphan blocks created in parallel but rather allows them to coexist and orders them in consensus. Considering that Kaspa is a PoW blockchain, the 1-second block time is pretty impressive. The team is still aiming at reducing this to 32/second, with visions of 100/second!
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The maximum supply of KAS is 28.7 billion with a current circulating supply of 19.69 billion. The market cap is still relatively modest at $634 million, which isn’t much for a layer 1 blockchain. Kaspa was launched in November of 2021 and is likely one of the only coins to be at a higher valuation now than at the peak of the bull market. Take a look at the screenshot below, it reveals an enormous surge post-November 2021.
I must be honest, this is looking like a project that I am quite likely to become quite fond of. Furthermore, the potential upside is rather significant, and I am fairly sure that Kaspa will be among the top performers over the next two years. My only issue is that I didn’t look into it sooner. I have been watching it and sensing something of an inkling, but was a little slow on the uptake!
Final Thoughts
I really hope Kaspa moves up the ranks and takes its place amongst the other well-known layer 1 projects. Oh, yes… KAS is currently ranked 73 according to CoinGecko. Injective Protocol is another layer 1 that I am eyeing and addressed a few months back. I believe we need a little more competition in this particular sector, and am fairly confident that Kaspa is going to do just that. Anyway, that’s it for this one. Catch you next time!
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Disclaimer
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This article was first published on Sapphire Crypto.
Posted Using LeoFinance Alpha
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