Kaspa Wallet

The project is open-sourced, community-based, and follows no central governance or business model. The idea was first implemented by Yonatan Sompolinsky and Aviv Zohar in 2016.

Kaspa Wallet

The Kaspa project, which launched in 2021, immediately attracted the attention of the entire crypto industry. It’s a Layer 1 blockchain that uses the proof-of-work consensus mechanism but, unlike classic PoW blockchains it’s extremely fast, suggesting that its creators have come close to solving the blockchain trilemma. We’ll you what makes Kaspa special and why it’s faster than its rivals.

How fast is it?

Kaspa is currently considered to be the fastest PoW blockchain. A single block containing about 200 transactions is mined an average of once every second, and it takes no more than 10 seconds to confirm transactions.

At the same time, the creators of Kaspa believe that it is not entirely correct to measure the throughput of their blockchain in TPS (transactions per second), instead drawing on an analogy with libraries.

If we imagine that each block is a book that a librarian needs to put on a shelf, and each page of the book is a transaction, then the speed doesn’t depend on how quickly the pages are turned, but on how fast the librarian puts the books on the shelf (which represents the blockchain). The developers plan to increase the throughput to 32 blocks per second (BPS), and in the future hope to achieve an incredible figure of 100 BPS. In order to facilitate this, the project code is currently being migrated to Rust.

How does it work?

To achieve these high speeds using PoW, the creators of Kaspa came up with the idea of storing data on something called a blockDAG, or a directed acyclic graph of blocks. The GHOSTDAG protocol is responsible for reaching consensus, while PoW ensures on-chain security. Let's try to figure out what all of these things are and how they work together.

To get a better understanding of how blocks are stored in Kaspa and how this blockchain is different from the rest, we need to remind ourselves of how new blocks are added to classic PoW blockchains like Bitcoin.

Miners receive a list of transactions from the nodes and begin to solve a cryptographic problem, competing with each other to be the first to create a block using these transactions. After the block is created, it is sent to the nodes for verification and added to the blockchain.

We’ve simplified things massively, of course, but we think it should help you to get a better understanding of how GHOSTDAG works. By the way, you can visit the Kaspa Graph Inspector to see what it looks like in real time.