Kusama Making Waves — A Guide To KSM

If you want to be successful, you need your project to be fully functional and address these key aspects.

  • Scalability, accepting an unlimited number of users operating concurrently.
  • Speed, they can process thousands or millions of operations per second.
  • Sustainability, all of the features need to be able to work consistently and as expected over time.
  • Interoperability, although not a requirement, this feature is a big factor in project success and encompasses the ability to operate between blockchains.

Polkadot and Kusama

Fortunately, there is Polkadot, an ultra-fast blockchain that can guarantee all of those features. The Kusama project has the mission of supporting new developments on its testing platform.

It allows the creation of new blockchains and the development of applications on them, improved smart contract management. The ecosystem was initially created as a network to test applications and projects before moving to the Polkadot chain, but the success of the project and the benefits it offers have led to most of the developments remaining in the Kusama ecosystem and not migrating to the Polkadot chain.

This success has meant that its KSM token is potentially more promising than the DOT token of the Polkadot mother chain.

What is Kusama?

Kusama is on the Polkadot chain and is a development environment. It is fully open source and available on GitHub repositories and accessible to any developer. The code and tools are exactly the same as those used on the Polkadot chain.

The developers take the PoS protocol used in Polkadot and improve it to provide more efficient transaction validation, the final product is called NPoS. Recall that PoS results in faster transactions using validator nodes, which are nothing more than users who stake, and hold amounts of the KSM token.

Staking allows them to become validator nodes and receive rewards for it, resulting in much lower transaction fees than on the Ethereum and Bitcoinchains. This is because many transactions can be validated simultaneously and not in a stack one by one.

Undoubtedly the initial idea was a good one, to have a testing chain, with fast development and all the benefits and tools available in Polkadot. This was so that the existing development in Polkadot would already be debugged and free from errors that are frequent and normal in any development.

Kusama Benefits Polkadot

In my opinion, Kusama is of great benefit to the Polkadot chain for two main reasons.

  • It acts as a liquidity-generating agent for the Polkadot chain.
  • It keeps the Polkadot chain debugged. The applications and sub-chains are free of errors, which generates a lot of confidence in its network.

Now the question that remains, if I developed in Kusama, and I have what it takes to be successful with my project, why move to Polkadot?

I can really only find one valid reason for migrating — and that is that the liquidity in Polkadot is much higher than in Kusama.

The benefits of staking DOT tokens in Polkadot are much higher than those who stake and maintain KSM in Kusama. However, for enthusiastic investors who like to trade, I can guarantee you a better investment with the KSM token and I will describe that further down when I discuss the KSM token.

How do the New Developments Apply to the Kusama Network?

Kusama created a fair mechanism, where there is room for everyone and not only a group of economic elites. The auctions on the parachain are effectively leased spaces for developments. These spaces are not limited to creating financial applications, they can also be used to create their own blockchain bespoke improvements. Kusama’s web portal elaborates further, however I must alert you that there are some non-functional links on the website.

The KSM token, is it Profitable to Invest in?

KSM has multiple functions. At the time of writing KSM was hovering around the $472 mark with a market capitalization of over $4 billion, not bad for a token that is only two years old. But what is most striking is its experienced increase.

This year during the crash the KSM currency never lost its attractiveness to investors and personally I still received profits from it despite the wider market chaos. When most people usually take refuge in stable currencies, I took refuge in KSM, and I did well.

The success of the coin is due to its novel NPoS protocol and the way the token is used within the network, making both trading and holding profitable. In addition to holding KSM, the protocol guarantees a proof of participation which brings good profits to the holders as they receive rewards as transaction validators.

The token is available on major exchanges, Binance, Kucoin, Kraken, Huobi Global.

Conclusion

For investors, they should keep an eye on the auctions taking place on the parachain where developers are rushing to stake KSM to take part in the development slots. Whenever auctions occur it definitely pushes the value up of the coin.

Kusama stopped being a test network and consolidated itself as a successful standalone network for new developments. In doing so it surpassed the development and acceptance of its mother chain Polkadot.

Kusama is still in its infancy with a good number of developments that can interact with each other on the horizon. It is definitely a network to watch in the future.

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