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What is Kusama (KSM)?
Kusama is an experimental blockchain that is designed to deliver a huge interoperable and expandable framework for blockchain programmers.
Kusama Blockchain is built on Substrate. The substrate is a blockchain building platform created by Parity technologies. Kusama is widely popular as the advanced version of polkadot and the code for Kusama is KSM. Kusama is often referred to as the “ Canary Network” in the world of cryptocurrencies. Quick projects gain access to an interoperable network when deployed on Kusama, which feature is not available on the traditional Polkadot.
Developers across the world use Kusama as a testing ground to bring innovations and additions to the blockchain polkadot. If the changes seem to benefit Osama, then the changes/innovations will be deployed on Polkadot as well.
Even though Kusama is the testing ground, many developers end up deploying their developments on Kusama itself without actually taking them to the polka dot. Kusama offers very low to no barriers for developing para chains and low bond requirements for validation.
So that’s why Kusama is chosen by early-stage startups to test and experiment on it as much as they want. This is undoubtedly an added advantage of deploying code on Kusama.
Who are the founders of Kusama (KSM)?
The creators of Polkadot were the creators of Kusama as well. A company known as Parity technologies has built the advanced version of Polkadot, Kusama.
Founder of Parity technologies Dr Gavin Wood, who is a very popular computer scientist and developer across the scientific community, has played a key role in creating Kusama. Dr Gavin Wood has also co-founded Ethereum / ETH.
Along with the torchbearer, Parity Technologies has a well qualified and highly talented team. The team comprises more than 100 talented blockchain engineers who are spread across the world. They have played a crucial role in developing, enhancing and maintaining the Kusama blockchain. Kusama also gets grants from the Web3 foundation. The Web3 foundation also provides Kusama with research and resources and helps the Kusama team to grow.
How does Kusama (KSM) Work?
Blockchain creation involved in the Kusama network is as follows.
Relay Chain
Para-chains
Relay chain
This is the main Kusama Blockchain, this network is where transactions are finalized. To increase the speed of the transactions, the relay chain separates the latest transactions from the transactions which are to be validated.
The relay chain uses a nominated Proof-of-stake (NPS) type of consensus mechanism to ensure secured transactions. The relay chain is meant for two types of users, both validators and nominators. Validators validate the para-chains and make the blockchain secure, whereas nominators elect trustworthy validators to secure the chain.
People who have a stake in KSM are eligible for validating and nominating and also collecting the inflation rewards.
Para chains
Para chains are subsidiary blockchains that check the validity of the transactions. Kusama governance involves three types of users including the referendum chamber, the council and the technical committee.
Referendum chamber
Any KSM staker can propose/oppose the major changes in the network.
The council
Council is elected by KSM stakeholders to propose and approve the changes made to the software. The council contains 7 positions.
Technical Committee
The teams which actively participate in the development and are elected by council members to look after the Blockchain development and enhancement.
How to use Kusama (KSM) coins
- Visit the claim tokens tab in Polkadot UI.
- Choose your account and click continue
- Visit the sign and verify section in message tab
- Copy the message from sign ETH transaction tab and copy the below shown signature
- Paste the message in Sign ETH transaction box, if you have a valid claim on DOT, your address will be shown on KSM as well in Polkadot UI
Security of Kusama (KSM) Network
As mentioned earlier, Kusama is built using a nominate proof-of-stake ( NPS) consensus mechanism unlike the other blockchains in the market. The NPS consensus mechanism uses a network of KSM stakers/ nominators to elect nodes to participate in the validation of the transaction process. The nominators receive a portion of the inflation reward if at all their nominator is selected on the next bout of rotation. Dishonest validators will have their stake decommissioned. Kusama also uses a basic queuing method based on Merkle Trees. This queuing method can be used to resolve cross-chain transactions.
Where to buy Kusama / KSM
Kusama / KSM is currently available for credit or debit trading on numerous crypto exchanges. Some of the popular exchanges, where KSM can be traded are Binance, OKEx and Huobi Global. The most popular Kusama trade pairs are Kusama / USDT, KSM/BTC, KSM/ETH.
What makes Kusama (KSM) unique
Kusama is an unconventional blockchain platform that supports fast-paced projects and developers who want to create innovative solutions. Kusama is a multichain type of Blockchain and employs a heterogeneous shared design, which in turn uses a nominated Proof-of-stake (NPS) consensus system.
The NPS consensus system stands out from the rest of the consensus mechanisms as NPS because it is an alternative consensus mechanism to the energy-intensive proof-of-work ( POW), which is currently used by most of the blockchains in the industry. NPS enables Kusama to provide rapid on-chain upgrades and to support cross-chain message conveyance ( XCMP), enabling communication across the para-chains on the Kusama network.
Like Polkadot, Kusama also employs on-chain governance capabilities. The on-chain governance is highly decentralized, enabling anybody with Kusama tokens or para chain tokens to participate and make decisions in governance. An estimate proves that on-chain governance in Kusama is almost four times faster than that on Polkadot. Kusama also ensures maximum coordination and cohesion between the peers on the network.
How many Kusama coins (KSM) are in circulation
Kusama/ KSM network has a total circulating supply of 8.47 million tokens and a total stock of 10 Million KSM tokens by the end of 2020. While other blockchains in the industry have somewhat fixed the supply of their tokens, Kusama hasn’t fixed supply and the supply of KSM tokens increases at a 10% inflation rate every year.
Inflation induced tokens are rewarded to the validators and 50 per cent of the total supply of tokens are rewarded to stakeholders. If the 50% rule is not satisfied, some of the inflation-induced tokens are also rewarded to stakeholders until the 50% rule is met. Kusama hasn’t undergone redenomination to get its supply increased, unlike Polkadot.
Initially, Kusama tokens were awarded to Polkadot / DOT buyers as an airdrop in a 1: 1 ratio. The corresponding Kusama values of Fractional DOT sales are decommissioned.
Conclusion
Kusama (KSM), as the productive testnet today, holds a unique place in the market. Kusama is positioned to be a market leader for dApp production and blockchain development with its forward-thinking design. It is also likely to remain one of the most active and useful investments for many years to come.
Want to know about Monero? Head to Postling blog.
