September 15, 2021 |James Messi
Crypto titans like Bitcoin and Ethereum have been joined by a host of other coins that have found their respective niches and continue to contribute to the development and the exciting dynamism of the cryptocurrency market. As a relative newcomer, Kusama (KSM) is a project already accompanied by impressive developers and user adoption.
Kusama, unlike its predecessors, is more versatile and runs with two types of environments. These serve specific purposes that allow for greater efficiency of the token as a trading instrument. Let’s take a look at what makes Kusama a viable asset that crypto traders should keep on their radar in the coming months.
This article dives into the different facets of the Kusama project, namely:
- Kusama as a developer’s sandbox
- The KSM token
- The relationship between Kusama and Polkadot
- The types of blockchains created with Kusama
- The three governing bodies of the Kusama environment
How Kusama Works with Its Token, the KSM Coin
Apart from being a testing environment for developers, Kusama is notable for its creation of two classifications of blockchains:
- ParachainsThese are custom blockchains that make use of the computing resources so as to confirm the accuracy of transactions.
- The Relay ChainThis is considered the main chain for Kusama. It is this network wherein all transactions are finalized. Transactions can be sped up in this environment as it separates the newly-launched transactions from their actual validation.The Relay Chain is a Nominated Proof-of-Stake (NPoS) system. When a user stakes KSM (the token) by locking it in a contract, it may be allowed to perform the roles of Validators, those that validate data and Nominators, those that delegate their staked KSM coin.
These functions make these individuals eligible for receiving a number of different token rewards.
Kusama Governance: The Three Bodies of Administration
The entire environment is governed by three classes of Kusama users:
- The CouncilThese individuals are elected by holders of KSM. They propose changes and decide which proposals could be accommodated by the environment.
- The Referendum ChamberMembers of the Referendum Chamber buy tokens and make proposals to the system.
- The Technical CommitteeThese are active builders of the environment. They administer special proposals during emergencies. The members of this technical committee are elected by Council Members.
Behind Kusama and Polkadot
As already mentioned, Kusama provides early code releases for the Polkadot blockchain. And while it is apparent that the two systems feed off one another, each created by the same founders, the two environments do have key differences.
The first difference between the two is the speed at which proposals are made, voted on, and implemented. With Kusama, we are looking at a total of seven days for the election process and eight for the realization of the changes. In the Polkadot environment, these changes usually take at least one month.
Second, becoming a Validator within Kusama is more straightforward than on Polkadot. With Polkadot, it is rather complex as it would require multiple staking requirements.
Kusama: Key Takeaways
Kusama’s role as both an environment for development and as an actual blockchain protocol for its native coin, KSM, is noteworthy. It has established a niche and purpose that raises it above other ecosystems. As a result, the Kusama project and its KSM token have a promising future ahead.
If one is really serious about cryptocurrency trading, regardless of the crypto exchange, then one must practice due diligence by looking into all possible reviews and testimonials regarding Kusama and its token. Right now, KSM holds potential, but with the cryptocurrency terrain always changing and highly volatile, Kusama’s route may go both ways.
All About Kusama and the KSM Coin: What You Need to Know
- The Kusama Environment as a SandboxThe public pre-production environment that serves Polkadot — a software that incentivizes an international network of computers used to test new blockchains prior to their release onto the network and the crypto markets.
- The KSM CoinThis refers native asset of the Kusama blockchain, KSM.
Kusama and Its Relation to Polkadot: Founding and Its Sandbox Function
With regard to the first facet of Kusama’s service, the Kusama environment can then be thought of as a sandbox wherein developers are given room to try a number of Polkadot projects. The only difference that it has over a traditional sandbox is that Kusama actually gives its users the chance to trade actual cryptocurrencies including the KSM coin.
Suffice it to say, with its affiliation with Polkadot, the developers from Kusama had emulated a number of the platform’s primary design features.
Kusama is half the brainchild of Gavin Wood, one of the founders of the Ethereum network, and also one of the developers of the Polkadot environment.
The KSM token currently has a market capitalization of $3.3 billion. There are 8,470,098 KSM tokens in the circulating supply. The maximum future supply is set at 9,651,217 KSM. Global daily volume typically falls in a range between $200 to $600 million. The all-time low price for KSM was made at $0.91 on January 14, 2020. The all-time high for KSM was hit at $623.75 on May 18th, 2021.
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