What Is Kusama?
It was formed on Substrate, a blockchain building kit developed by Parity Technologies. Kusama also has the same codebase as Polkadot, one of the most triumphant interoperable blockchains.
Kusama, fast-paced projects obtain access to a highly accessible, compatible sharded network, with attributes not obtainable yet on Polkadot. Hence, it expresses itself as a canary network.
The platform is developed to give a testbed for designers or developers looking to constitute and station their blockchain and its use as an introductory network before putting it to sea on Polkadot. Though, many projects choose to stick with Kusama for their final product.
Kusama gains from a low barrier to entry for stationing parachains, low bond requirements for validators, and is most often used by early-stage startups and for investigations or researches.
Who Are The Founders Of Kusama?
Kusama was developed by the same team that built Polkadot, which is a company also known as Parity Technologies. The founder of Kusama is Dr. Gavin Wood, a world-renowned computer scientist, and programmer who also co-founded Ethereum.
Parity Technologies has an extensive team that consists of some of the world’s most leading blockchain engineers and has over 100 workers in total all over the world.
To sum up, Kusama funds itself with grants from the Web3 Foundation, introduced to help nurture and steward technologies and applications in the fields of decentralized web software protocols.
Web3 foundation also helps Kusama with research and community development about its growing team.
What Makes Kusama Unique?
Kusama is unusual among blockchain platforms since its made for developers that want to set in motion strong and enterprising projects with a fast-evolving pace of development.
It is made on a multichain, heterogeneously-sharded blueprint that utilizes a nominated proof-of-stake (NPoS) consensus method as an alternative consensus mechanism to the energy-intensive proof-of-work (POW) scheme worked by other blockchains.
This structure enables it to work fast on-chain upgrades without a fork and helps cross-chain message passing (XCMP), to sustain communication with other parachains on the Kusama network.
Kusama characterizes on-chain governance capabilities just like Polkadot. This on-chain governance is both decentralized and permission-less, permitting anyone with Kusama (KSM) tokens or parachain tokens to choose on their respective governance proposals, which may include putative upgrades, changes to the protocol, and feature requests.
This on-chain governance procedure is roughly four times faster than that operating by Polkadot, with a combined voting and enactment period of just 15 days leading to the quick pace of development for projects made on Kusama.
It helps projects that want to hit the ground running launching updates and improvements without the need of a fork do so hence ensuring strong community cohesion.
For these reasons, we classify Kusama as one of the most promising cryptocurrency’s that could be a great player in the decentralized world in the years to come.
How Many Kusama Tokens Are In Circulation?
In November 2020, it has a circulating amount of 8.47 million tokens and a total supply of 10 million tokens. This maximum supply is not fixed, unlike some other blockchains. Hence, it rises at an inflation rate of 10% every year.
The proportion of KSM posted, changes how the freshly minted KSM tokens (from inflation) are shared. If exactly half of all KSM is posted, then Kusama validators get 100% of freshly minted tokens, but if it is above or below 50%, then some of the inflation rewards will go to the Kusama Treasury.
Kusama initially launched as an airdrop to those that took part in Polkadot (DOT) token sale. They were shared at a 1:1 rate, while those without DOT, were able to get KSM by using a frictional faucet that has since been decommissioned. Kusama has not undergone redenomination to raise its circulating supply as compared to Polkadot.
How Safe And Secured Is Kasama Network?
This blockchain is built, using a nominated proof-of-stake (NPoS) consensus mechanism. How this mechanism works is that it uses a network of nominators called (KSM stakers) who select nodes to participate in the transaction validation procedure.
The nominators then receive a part of the inflation reward if their nominator is chosen based on the next rotation. Validators who do not meet performance requirements or act dishonest stakes are penalized.
To add up, Kusama uses a simple queuing mechanism focused on Merkle trees to solve cross-chain interchanges. Relay chain validators are responsible for moving transactions from the output queue of one parachain to the input queue of the target parachain this is a secure, trustless process that uses the same validators on each chain to pass the information.
Where Can KSM Be Purchased?
Why Buy KSM?
KSM are vital in the use of the Kusama blockchain. For instance, consumers or users need to bet KSM to choose or vote on possible upgrades to its network.
In the procedure, these users gain a percentage of new KSM tokens minted by the protocol.
How To Stake KSM ?
Step 1: Create a Kusama conformable wallet.
KSM’s wallet for staking can be done in lots of ways, the most familiar being staking via the Polkadot JS application. Since Kusama and Polkadot are based on the same code base, Polkadot wallet works perfectly well with Kusama, similar to ethereum wallets and Binance Smart Chain wallets.
The first step is for you to launch your preferred browser such as Chrome, Brave, or Firefox on your computer and navigate to the Polkadot JS Application page.
There are several ways to create a wallet with this application but for purposes of simplicity, we would choose the extension method.
Click to download the extensions for your browser. It will take you to your browsers store to install all the necessary extensions.
Click Add to Firex Fox (or the name of the browser you are using) to install all the required extensions.
Follow the prompts to install the extensions with ease, after installation, you would see the Polkadot logo at your extensions menu, this can be found at the top right corner of your Firefox browser, click on it to continue.
You would be faced with a prompt, click on “I understood to Continue“, and you would be met with a beautiful interface like this;
Click on the Plus sign to create your first account.
Your wallet address and a 12 digit mnemonic code would be revealed to you, save the mnemonic code in a secured area as it is the private key to your wallet and can be used to import your wallet to another browser.
Select; I have saved my mnemonic code safely
Click on; Next Step
Enter your descriptive name for your account and secure your account with a password.
Click; “Add the account with the generated seed” to continue
Congratulations you now have a POLKADOT wallet which you can use to bond Kusama.
Step 2: Bond with Kusama
In your browser, navigate to the Polkadot JS App, if you are doing this in the same browser you installed the Polkadot (Kusama) wallet above, you would be asked to confirm a connection to the wallet, allow the connection to proceed.
You would be faced with an interface like the above once the page is fully loaded. Notice that we are seeing Polkadot here, this is because Polkadot and Kusama are using the same code base. What we need to do is to switch to the Kusama Substrate to stake Kusama.
Switch to Kusama Substrate on Polkadot JS App
Click on the far left corner, where you see Polkadot, an image like this would come up;
After selecting Kusama and the right node suitable for you, click on the switch icon, and now the Kusama chains would load for you. You would see an image like this:
From here, you can click on staking to stake your KSM for tokens to receive rewards.
Step 3: Select a validator.
After the assets have been bonded they are closed, and they may be subjected to slashing if the chosen validator that the user nominated backfires or misbehaves.
During this process, users can select up to 16 different validators to send their assets.
Users can choose “nominate” in the “account actions” tab the pop-up will ask the user which validators they want to select.
Once selected, users will be prompted for their password to verify their selection. After this step is complete, staking will proceed duly.
KSM Price Prediction 2022-2025
KSM has moved down from an All-Time High of $518.8 to the current price of $276.4 at the time of writing this article. This accounts for almost 50% loss in value over a period of 1 month. In the same period, Bitcoin has lost about 25% of its value from the all-time high.
Losses of this nature are particularly regular in the crypto market, where boom and bust cycles are predominant, while prices rise and drop, coins based purely on hype do not rise back after bear markets, making bear markets a good tool in eliminating unworthy coins.
In Analyzing KSM we took a good look at the utility, if a coin has great utility, it doesn’t matter how low it falls, it will rise again as more and more people utilize the utility provided by the blockchain.
At the current KSM Price of $275, KSM seems to have reached a support level, should that support hold, KSM next resistant level is around price point $360- $400, before breaking it to reach the previous all-time high and making new waves.
However, should the current support fail, KSM can go as low as $220 before rising up again.
In the next 3 years, we expect KSM to rise from its current price point to a price above $1000, this estimation is based primarily on our belief in the utility provided by KSM and its parent blockchain.
Where there is utility, there is bound to be growth.
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