BCGAME - Free 5BTC Daily Bonus!The Kusama cryptocurrency is the “canary” network of Polkadot. It was created for running decentralized applications (dApps) that have not yet been deployed on the Polkadot blockchain. But more than just a testnet, the platform operates with real economic implications. This sets Kusama apart from the usual understanding of how testnets operate.
What is Kusama Network (KSM) token
The Kusama cryptocurrency is a public pre-production environment for Polkadot, which allows any developer to experiment and test new blockchains or applications before releasing them on this network.
In this way, it can be said that Kusama acts as a kind of sandbox for developers looking to test early versions of Polkadot projects, but with real cryptocurrency traded on an open market.
Official Polkadot updates are also tested on Kusama before being released.
Since its main use case is to facilitate testing, Kusama tries to give developers more flexibility while finalizing the design of their Polkadot projects. In turn, Kusama offers more flexible rules than Polkadot, including less rigid governance parameters.
Elsewhere, Kusama mimics most of Polkadot's key design features. For example, Kusama uses two types of blockchains – a mainnet, called a relay chain, where transactions are permanent, and user-generated networks, called parachains.
Parachains can be customized for any use and leverage main relay current for safety.
A potential advantage of starting a project in Kusama is that it allows Polkadot projects to build a user base and gain traction in the community prior to official launch.
Users who want to stay connected to the project's current development status can follow the official Kusama project blog for updated details.
How does the Kusama token work?
The Kusama network allows the creation of two types of blockchains.
The Relay Chain - Main blockchain from Kusama, this network is where transactions are finalized. To achieve greater speed, the relay chain separates the addition of new transactions from the act of validating those transactions.
parachains – Parachains are custom blockchains that use the computing resources of the relay chain to confirm that transactions are accurate.
The Relay Chain
To keep your network in agreement on the state of the system, the Kusama Relay Chain uses a variation of the proof-of-stake (PoS) consensus called a named proof-of-stake (NPoS).
This system allows anyone who bets on KSM, locking the cryptocurrency in a special contract, to perform one or more of the following functions necessary for its operation:
Validators – validate data in parachain blocks. They also participate in the consensus and vote on proposed changes to the network.
Nominators – Secure the relay chain by selecting trusted validators. Nominators delegate their staked KSM tokens to validators and thereby allocate their votes to them.
Users who bet on KSM and perform these functions are also eligible to receive KSM rewards.
Kusama governance
Three types of Kusama users can influence software development.
These include:
The Referendum Chamber – Anyone who acquires KSM tokens can propose network changes and approve or reject key changes proposed by others.
The advice – Elected by KSM Holders, board members are responsible for proposing changes and determining what changes proposed by KSM Holders are made to the software. The Kusama Council started with seven seats, but intends to increase as community interest grows.
The Technical Committee – Comprised of teams that are actively building Kusama, this group can make special proposals in an emergency. The members of the technical committee are voted by the members of the Council.
The difference between Kusama and Polkadot
Kusama is branded as a “canary network” for the Polkadot blockchain, meaning that it provides early release of code that has not been audited and is available before it is released on Polkadot.
The first key difference between the two networks is the speed of the governance system. In Kusama, it takes seven days to vote in a referendum and eight days to implement changes after the polls, compared with one month for each in Polkadot.
Second, becoming a validator in Kusama is much easier as the minimum stakeout requirements are lower than in Polkadot.
It is important to remember that Kusama is a blockchain for experimentation, and that it gives up stability and security to increase network speed.
Who created Kusama?
Kusama cryptocurrency was founded in 2016 by Polkadot creators Gavin Wood (an Ethereum co-founder), Peter Czaban and Robert Habermeier.
Wood's background is notable when he invented Solidity, the language used by developers to write decentralized applications (dapps) on Ethereum. He was also the first CTO of the Ethereum Foundation and was previously a research scientist at Microsoft.
Wood founded a company called Parity Technologies in 2015 that maintains Substrate, a software development framework used by Kusama developers looking to build parachains.
Wood is also president of the Web3 Foundation, the nonprofit organization that drove the Polkadot token sales, raising an estimated $200 million from investors in the process.
Why does the KSM token have value?
The KSM cryptocurrency plays a key role in the maintenance and operation of the Kusama network.
By owning and staking KSM, users gain the ability to vote on network updates, with each vote being proportional to the amount of KSM cryptocurrency they stake.
Kusama rewards these users with freshly minted KSM based on how many tokens they are staking, with validators and nominators receiving rewards.
Of note for investors, however, is that there is no limited supply of KSM. Instead, new KSM tokens are expected to be released in perpetuity, at a predetermined rate of inflation.
Why should I use KSM cryptocurrency?
Users may find Kusama attractive based on the pre-production features it offers for the Polkadot network and its focus on facilitating interoperability between the two blockchains.
Projects can also maintain parachains on Kusama and Polkadot, using their Kusama parachain to experiment and test new features before updating their Polkadot parachain
Several projects have deployed parachains on both networks, including Gitcoin, a platform that offers paid opportunities to developers by linking them to open source projects, and 0x, a platform for decentralized exchanges.
Investors may want to add KSM to their portfolio if they believe in the future of the Polkadot ecosystem and the blockchains that underpin the applications.
Kusama Cryptocurrency (KSM) Where to Buy
There are several reliable options for buying KSM. Cryptocurrencies can be traded mainly on centralized exchanges.
Major exchanges include:
- Binance: This is the most popular exchange for trading Kusama. It features the KSM/USDT trading pair, which has a high trading volume.
- OK: Another respected platform where users can easily buy and sell KSM.
- XT.COM: This exchange also offers KSM, making it a viable option for investors.
Trading volume on Binance is often significant. Recently, the volume was approximately $91 million in 24 hours. This demonstrates the liquidity and activity of the platform.
Investors should always check the exchange fees and security before making any transactions. Buying KSM is a straightforward process and can be done via smartphones or computers.
How to Buy Kusama Coin (KSM)
Buying Kusama (KSM) cryptocurrency is a simple process. Here’s how to do it on the Binance platform.
- Create an account: First, you need to create an account on Binance. You will need to provide some basic information and confirm your email address.
- Verify identity: After creating your account, it is important to go through the identity verification process. This ensures security and regulatory compliance.
- Add Funds: The next step is to add funds to the account. The user can use several options, such as bank transfer or Pix.
- Find Kusama (KSM): After adding the balance, the user must access the Kusama marketplace on the platform. This can be done using the search bar.
- Buy KSM: The user can click on “Buy” and choose the quantity of KSM they wish to purchase. It is possible to set up a purchase order or opt for immediate purchase.
- Store KSM: After purchasing, KSM can be stored on Binance itself or transferred to an external wallet for added security.
Following these steps will make it easier for you to purchase Kusama cryptocurrency quickly and securely.
Conclusion
To create a fully functional application or to test a successful new feature on a blockchain mainnet can be a tedious, time-consuming and expensive process. This could affect the development of many projects in the DeFi space. A test network almost similar to your main network, but implemented in real economic conditions, can be an effective environment for developing new projects.
While Kusama is not a risk-free testnet, as platform decisions can come with real implications, it can also be a powerful incentive for developers to create new dApps or test new features. The risk that testing on the platform carries also includes the possibility of them earning rewards for doing so.
But overall, perhaps the biggest benefit of a realistic mainnet like Kusama's is that it can help build a stronger network. Through a canary network, any feature can be comprehensively tested before being deployed to the main Polkadot network
FAQ
Is Kusama Cryptocurrency Worth It?
The decision to invest in Kusama should be based on careful analysis. It has unique features that attract developers and investors. However, the volatility of the cryptocurrency market should be considered.
Will Kusama Cryptocurrency Rise?
Predicting price fluctuations is challenging. Factors such as platform adoption, Polkadot network performance, and market trends can all influence the value of KSM. Continuous research and market analysis are essential to make this assessment.
Kusama (KSM) Cryptocurrency Price Prediction 2025
There is a possibility that Kusama will be able to break through the $126,45 barrier and sustain the market until the end of 2025. The lowest price for Kusama will be between $104,45 and $126,45, with the most likely price being stable around $125,08 until the end of 2025. Despite the unpredictable swings in Kusama’s value and the controversy surrounding its environmentally harmful energy use, billionaire venture capitalist Tim Draper maintains his prediction that Kusama will reach $126,45 by the end of 2025 or early 2026.
Kusama (KSM) Cryptocurrency Price Prediction 2030
By early 2030, Kusama price prediction and technical analysis suggest that Kusama will cost $352,92, and KSM is expected to reach $352,92 by the end of the year. Furthermore, KSM may reach as high as $328,16 in price. The time span between 2024 and 2030 will bring significant years for Kusama’s growth.
Is Kusama a good investment?
Kusama can be considered a good investment for those who believe in the potential of experimental blockchain platforms. The constant innovation and interactivity of the network offer opportunities. However, each investor should consider their own risk tolerance.
What is the future of the KSM coin?
The future of KSM may be tied to the growth of the Polkadot nation and the expansion of its projects. As more developers utilize the Kusama network, the value and utility of KSM may increase. Monitoring these developments is important.
Is Kusama Coin safe?
Kusama implements robust security protocols, but like all cryptocurrencies, it is not completely risk-free. Security measures and good storage practices are essential to protect investments.
How to store Kusama Crypto securely?
There are several options for storing KSM securely. Both hardware and software wallets can be used. Choosing a reliable wallet helps minimize risk.
What are the risks of investing in Kusama?
Investing in Kusama involves risks such as volatility and regulatory changes. Additionally, as an experimental platform, there may be unexpected glitches or issues. Investors should be aware of these factors before investing.
