1. KASPA KRC20 Smart Contract Analysis: Basic Concepts and the Impact of Token Development on KASPA
KASPA has emerged as one of the most successfully developed mining coins following Ethereum’s transition to Proof of Stake (PoS). In just two years, it has rapidly grown to rank among the top 20 cryptocurrencies by market capitalization. Although the cryptocurrency craze has somewhat subsided, there are still relatively few investors in South Korea who are interested in KASPA.
Ethereum’s position as the second most important cryptocurrency after Bitcoin is largely due to its provision of smart contracts, which have enabled a wide range of applications and expanded the Ethereum ecosystem. Through the ERC20 standard, Ethereum has facilitated the development of various tokens, contributing significantly to the growth of its ecosystem.
Similarly, KASPA has introduced the KRC20 token standard, analogous to Ethereum’s ERC20. Let’s delve deeper into the basic concepts, principles, and developments of KRC20.
Kaspa Coin Basic Information (as of August 22, 2024):
- Name: Kaspa
- Ticker Symbol: KAS
- Launch Date: 2022
- Founder/Development Team: Yonatan Sompolinsky and Research Team
- Market Capitalization: Approximately $1,500,000,000
- Circulating Supply: Approximately 20,000,000,000 KAS
- Max Supply: 28,700,000,000 KAS
- Exchange Listings: MEXC, KuCoin, Gate.io, etc.
- Consensus Algorithm: Proof of Work (PoW)
- Official Website: https://kaspa.org
2. Basic Concepts and Principles of KASPA KRC20
Non-Turing Complete
KRC20 does not support complex smart contract functions due to its Non-Turing Complete structure. Instead, it focuses on basic asset issuance and management functions. Therefore, it is not suitable for handling complex calculations or logic processing.
As a result, KRC20 prioritizes transaction speed and efficiency over complex smart contract functionality.
High Scalability and Speed
KASPA’s Directed Acyclic Graph (DAG) structure allows for high scalability and speed, as the blockchain is organized in parallel. Leveraging KASPA’s DAG-based foundation, KRC20 offers faster processing speeds than Ethereum’s ERC20, making it capable of handling real-world financial transactions efficiently.
3. Basic Design Structure of KASPA KRC20
Developers can use the KRC20 standard to issue various custom tokens and develop new projects. These tokens are created directly on KASPA’s DAG blockchain, enabling the development of diverse assets and applications. Based on KRC20, a rich ecosystem can be built, integrating meme coins, decentralized applications (DApps), financial platforms, and more.
4. Analysis of KRC20’s Impact on the KASPA Network
KASPA has grown into a major cryptocurrency, currently ranking among the top 20 by market capitalization. Additionally, the network operates on ASIC-based mining, ensuring high stability and processing speed. Thanks to KASPA’s DAG-based structure, it is expected that numerous new tokens will be created, building an ecosystem similar to Ethereum’s on the KASPA blockchain.
While Bitcoin plays a role akin to the U.S. Federal Reserve in the cryptocurrency market, KASPA has the potential to evolve into a cryptocurrency that can be used in everyday life, similar to Ethereum.
The completion of KASPA’s KRC20 development significantly enhances KASPA’s scalability, much like Ethereum, and is expected to positively influence KASPA’s future price. Currently, over 85% of the total supply of KASPA has already been mined, and the network hash rate has surpassed 800 PH/s. Furthermore, high-hash ASIC devices are set to be delivered to customers, with major mining companies like Marathon announcing plans to expand KASPA mining.
Considering further development of the KASPA network, increasing mining difficulty, and potential new investors, KASPA is expected to rise to $0.25 in the short term, making the current period an opportune time to purchase KASPA during its ongoing price correction.
5. Differences Between KASPA KRC20 and Ethereum ERC20
Ethereum was the first to introduce smart contracts, providing the blockchain with the scalability to be developed for various uses such as DeFi, NFTs, and meme coins.
Ethereum’s ERC20 is based on a linear blockchain structure where blocks are sequentially connected, resulting in slower processing speeds compared to KASPA’s DAG system, which uses a parallel structure.
While Ethereum’s ERC20 supports the development of complex applications and platforms based on smart contracts, KASPA’s KRC20 focuses on fast processing speeds and does not support complex smart contracts. However, with its emphasis on speed and efficiency, KRC20 is expected to have a more significant impact on real-world applications, including payments, potentially surpassing Ethereum’s token in areas beyond DeFi and NFTs.
6. KASPLEX: Challenging Ethereum’s Ecosystem
KASPA has launched KASPLEX, based on the KRC20 standard. KASPLEX is a system composed of three key elements: protocol, indexer, and API, supporting the development of various projects and solutions.
KRC20 provides the foundation for issuing tokens necessary for building KASPLEX. KASPLEX focuses on offering solutions for financial transactions without limitations, and it is expected to enable real-world payments similar to credit card and payment systems in the future.
Moreover, KASPLEX is an open-source system, allowing anyone to implement NFTs or various forms of digital assets based on KRC20.
To maintain the KASPLEX system, additional gas fees are required when transferring tokens. These fees help eliminate the extra data generated and sustain miners’ profitability.
