Kusama (KSM): A Market Leader in dApps Production
Kusama (KSM) was listed on Coinmetro exchange a couple of weeks ago, part of our Week 8 of 15 Weeks of Summer campaign. It was a busy one, with DAI, MATIC, NOIA and NEAR also getting listed and after the initial announcement, we wanted to take more time to talk and learn about these innovative assets. We are excited to work with listings and projects that are bringing many positive things to the community and are an active part in wide-scale crypto adoption. In this article, we will focus on Kusama (KSM) – the blockchain network designed and founded by the creators of Polkadot.
Kusama (KSM) Trading on Coinmetro Exchange
Kusama is a pre-production environment for Polkadot – that runs on an early unaudited release of the Polkadot blockchain. Kusama functions as a sandbox allowing any developer to test early versions of Polkadot projects in a live environment.
Kusama is designed to be a canary network for Polkadot. This means that Kusama will often try out new features or implementations before they are deployed on Polkadot. This allows for a more rapid rate of innovation and experimentation than would be possible on the mainnet.
Kusama is often referred to as “Polkadot’s crazy cousin”. This is because Kusama is much more experimental than Polkadot. Kusama is for developers and organizations who want to experiment with cutting-edge features and who are not risk-averse. Powered by the Kusama Network Token, KSM is the native token of the Kusama network.
KSM Token’s Utility
Kusama’s token has several utilities including the following:
- Used for the governance of the network – KSM holders can vote on referendums to decide the future of Kusama.
- It is used to connect a chain to Kusama as the parent chain.
- Serves as a utility token for users of the network – users must pay a small fee in KSM to submit a transaction to the network.
- As a staking currency – KSM holders can stake their tokens to validate transactions and earn rewards.
Kusama’s Relay Chain
Kusama uses two types of blockchains to process transactions and handle network activity. The main network is called the ‘relay chain’ where validators are staked. The relay chain has minimal functionality and is responsible for coordinating the system as a whole. There are also user-generated networks called peri-chains which can each have different architectures, features, and use cases depending on the project used in each one.
Origins of Kusama
Kusama was founded in 2016 by the creators of Polkadot (Gavin Wood, Peter Czaban, and Robert Habermeier). From July 2019 to the present, anyone with DOT indicator tokens can claim KSM at the same time as Kusama’s genesis block. The token sales from Polkadot and thus Kusama was handled by the Web3 foundation, where Gavin Wood is president. Kusama was released by Web3 before DOT opened up at the price of $1.71 in December 2019. Kusama’s distribution was identical to Polkadot’s distribution. Users who met the requirements and bought DOT during the pre-sale were entitled to a matching amount of Kusama. The team set aside 1% of KSM for potential rewards on the KSM network.
The Unique Nature of Kusama
Kusama is unique for several reasons. Polkadot uses Kusama as a special canary testnet for building their decentralized apps or projects. The majority of blockchain ecosystems simply use a testnet. By utilizing a live blockchain network, Kusama can offer testnet conditions and a functioning market that other chains cannot. This is due to Kusama’s community-driven governance, which allows for rapid evolution which is four times faster than Polkadot.
Secondly, Kusama uses two blockchains. The first is the main network called the relay chain and it’s responsible for handling transactions. The second is a user-generated network called a peri-chain connected to the relay chain. Together, they work to process transactions quickly. This makes Kusama much faster than Polkadot. Parachains are unique and allow users to run separate Layer 1’s (most well-known cryptos other than bitcoin) blockchains in tandem with the Kusama networks.
In addition to guaranteeing the security of the parachains, running distinct Layer 1’s attached to the relay chain considerably improves the scalability and interoperability of the Kusama network. Kusama has an advantage over other new decentralized applications (dApps) and initiatives for the Polkadot ecosystems due to its special position as a canary network for Polkadot. Before stabilizing and modifying their software for the Polkadot network, many dApps will launch on the Kusama network.
Main Advantages of Kusama
Starting a project on Kusama is advantageous because it enables Polkadot projects to develop a user base and acquire traction in the community before the formal launch. Users may find Kusama to be particularly fascinating due to its emphasis on encouraging interoperability between the two blockchains and its pre-production capabilities for the Polkadot network. Additionally, projects can maintain complete control of their parachains due to Kusama’s decentralized governance.
Kusama is the perfect environment for developing and testing new features before they are released on Polkadot. This allows for a more secure and stable Polkadot network while still providing developers with the opportunity to test out new features.
Lastly, Kusama has committed 1% of their total KSM tokens to be used for staking rewards. This encourages users to participate in the network and helps to secure it.
How to Buy Kusama (KSM)
You can get your hands on KSM on the Coinmetro exchange. We offer a fast, simple, and secure platform that makes buying KSM easy. Once your account is created and funded, you can buy KSM with the click of a button either on the spot market or via our limit order feature.
Final Thoughts About KSM
Kusama is an intriguing project with a lot of potential. It is fast, has a community-driven governance model, and is fully decentralized. Along with being developed by Gavin Wood, one of the original Ethereum developers, it also uses the creative and reliable Polkadot code base, as well as the same development team. KSM is positioned to lead the market for dApp production and blockchain development thanks to its innovative design, likely continuing to be one of the most popular and useful testnets for many years to come.
Meaningful Assets and the Current Bear Market
Figuring out when this bear market is going to end, is not the most important thing. More meaningful would be to understand who is shaping the blockchain space for good and is laying the groundwork for crypto global adoption. Large-scale development will just have to be better. The current on-chain technology is beginning to show its drawbacks: most of it is not environmentally friendly, speed can definitely be improved and scalability is the main roadblock.
Week 8 of 15WoS was a fruitful one on Coinmetro exchange. Alongside Kusama, other assets were listed on our exchange as well: DAI, MATIC, NOIA and NEAR – projects breaking new ground and offering technology that is becoming an integral part of the future of the on-chain environment.
Even though we are currently in a bear market, progress never stops. At Coinmetro, we are laying the groundwork for the next cycle of evolution, and partner with projects who do the same. Who will you be partnering with?
We want to hear all about it on Coinmetro’s Discord and Telegram! Join now to stay up to date with the latest crypto developments and news. To begin your trading and investing journey today, take action now and sign up to Coinmetro in just a few steps.