When Ethereum launched in 2015,
it introduced the world to the immense potential of blockchain technology and cryptocurrencies.
It created an entirely new world for blockchain innovators to develop solutions
that went far beyond peer-to-peer payment systems.
However, Ethereum had its drawbacks,
and when conflicts arose amid the core team members of Ethereum,
some of them parted ways to create new improved systems.
The good Dr. Gavin Wood,
one of the co-founders of Ethereum and a widely recognized computer scientist,
embarked on the journey to create Kusama,
followed by Polkadot.
The two networks are famously known as cousin blockchains.
Today, we're going to find out if they're kissing cousins.
Let's get it!
BitSwap is the hottest new way to trade tokens.
Crawling all the top decentralized exchanges,
BitSwap gets you the very best price and value for your trades.
BitSwap is changing the game.
Try it now at bitswapdex.io.
Welcome to BitBoy Crypto! The largest crypto channel on the Interwebs.
My name is Ben.
Everyday on this channel, I show you how to make money in cryptocurrency.
If you like money and crypto, make sure to hit that subscribe button and smash the likes.
Also, if you want access to the best altcoin research on the planet,
make sure to check out Token Metrics.
You get a 7-day trial for less than $5.
Just visit bitboycrypto.com/deals and scroll to the Token Metrics section.
In today's video, we'll take a look at how Kusama provides a playground for developers and teams
to test products on without any fatal determinant to the real blockchain core.
So you may be wondering,
"How does Kusama do this?"
"And what makes it so great that the founder of Ethereum was willing to leave ETH and start this on his own?"
So back to the basics. What is Kusama?
Dr. Gavin Wood created Kusama in 2019 as an early version of the Polkadot network.
This means both Kusama and Polkadot use almost the same code and infrastructure.
And they work with the same consensus protocol, nominated proof-of-stake or NPoS,
which is a modified version of the proof-of-stake protocol.
This is why to fully understand the concept of Kusama and its cryptocurrency KSM,
it's critical to discuss it alongside Polkadot.
The first question that pops up here is
"Why create two blockchain networks that work in a similar way?"
Well, let's see.
In simple terms,
Kusama is a blockchain that primarily acts as the testnet for Polkadot projects.
Any project that is to be deployed on the Polkadot blockchain is first deployed on Kusama
for its testing phase.
It's an experimental blockchain network that enables blockchain and crypto developers
to test their ideas and applications without the possibility of any fatal outcomes
for the team or their users.
Kusama is unlike other blockchain testnets such as Ethereum's Rinkeby.
Although it indirectly serves projects intended for the Polkadot network,
it is itself a full service blockchain network with a real cryptocurrency, KSM,
and a real set of nodes.
You should see the nodes on that one.
This is why some blockchain projects prefer to keep their final products on Kusama itself.
Even with real costs, Kusama is widely popular as a testnet network as it lowers the barriers to entry.
It allows developers and small-scale startups
to experiment and test their ideas and applications in a highly scalable and interoperable blockchain network
without spending as much money as they would on Polkadot.
Kusama also offers many advanced features in its experimentation phase
that are not yet available on its cousin network.
The creators of Kusama describe it as a wild and fast blockchain network that is a perfect fit
for bold experimentation and early stage deployment.
How does Kusama work though?
Well, the creators of Kusama claim that both Polkadot and Kusama are separate networks,
and their development over time is independent of each other.
But so far, unsurprisingly, both networks exhibit strikingly similar characteristics.
Kind of like me and Brad Pitt.
Even the price fluctuation of Polkadot's DOT token or KSM often affects the other.
Kusama works with the NPoS protocol and relies on network validators
to approve transactions on the blockchain.
To become a validator, network participants need to stake Kusama's native token KSM.
But not every staker on Kusama is a validator.
Some stakers with lower stakes can denominate other stakers who are positioned to become a validator.
The network then chooses validators based on their stake and the stake of their nominators
and allows them to verify transactions.
The total stake acts as proof that the validator will act in favor of the network and its users
and will not attempt to falsify the records on the blockchain.
This protocol for approving transactions is better and faster than the proof-of-work so far used by Ethereum.
Apart from that, Kusama also uses sidechains called shard chains
to distribute its total transactions across multiple chains to attain higher scalability and throughput.
This negates the challenges of network congestion due to transaction overload on a single chain.
At the time of this writing,
Kusama has a circulating supply of about 8.5 million tokens
and a market capitalization of $1.8 billion.
The adoption and demand for Kusama and the KSM token is visible
from how well the token has performed over time.
Let's see how it continues to grow
as this bull market continues to rage into the early hours of crypto's morning.
I do think though it's got more room to run.
As high as Kusama has gone,
I do believe it can get all the way up to over $1,000.
But what do you think?
Will Kusama continue to grow as Polkadot's wild cousin and slay the charts?
Or will the kissing cousins break up?
Drop your comments and price predictions down below.
That's all I got.
Be blessed.
BitBoy out.