What is Kusama (KSM)? All about Cryptocurrency KSM

By Nhan Ngo | Coins & Tokens

Kusama (KSM)

Recently, Polkadot and many projects within the network have become hot in the crypto community. The proof is that many investors have made attractive returns from these coins.

Today, let's learn about the Kusama token (KSM) - the project was built and considered the brother of Polkadot.

According to the definition of team dev:

Kusama is a "dedicated" network of Polkadot that plays the role of detecting and warning of any vulnerabilities or weaknesses in the Pokadot network.

For developers, Kusama is a proven platform for runtime upgrade and on-chain governance.

According to the definition of Coin98:

Kusama is the test version of Polkadot exists as an independent network.

Kusama allows blockchain developers to deploy and test versions or applications on this network before launching them on Polkadot.

Kusama was founded in 2019 by Gavin Wood, founder of Polkadot, he is also the co-founder and former CTO of Ethereum.

What problem does Kusama solve?

Kusama solves 2 main problems for developers:

  • Ability of extension
  • Interactive abillity

Ability of extension

Kusama's open governance and protected blockchains provide a future scalable and scalable infrastructure for businesses, markets, and applications to deploy and mature.

Interactive abillity

Kusama gathers multiple blockchains together into a divided network, freeing developers from nodes created by old blockchains.

In addition, with Substrate developers can build their own application blockchain and connect with Kusama

What is Kusama outstanding?

Here are some highlights of the project:

  • Fast loop: Kusama allows developers to quickly process their transactions through an advanced management process that allows for fast processing of transactions.
  • Low cost: Kusama supports projects that want to launch blockchain but the funding is not enough
  • Outstanding technology: Building on a network that has many generations of blockchain ahead, protected, using the latest features before being deployed on Polkadot.
  • Open Administration: Kusama is owned and operated by the community participating in the network, the user votes and controls the project. User has voice and influence to the development of the network.
  • Interactive community: Developers can leverage Polkadot's global brand and developer community for their parachains, parathreads, or dApps.
  • Valuable experience: For groups that want to deploy on the Polkadot network, start your activities and build a community and brand on Kusama before launching.

Participants in the Kusama network

For the Kusama network to be operated stably and safely, the network's internal elements are indispensable.

Here are some of the important ingredients and their functions:

Builders

This is the group of developers whose mission is to build parachains, parathreads, bridges.

These are essential to the deployment of dApps on the network. Because Kusama has the same background as Polkadot. So if they build dApps on Kusama, they will have the same experience as when they built on Polkadot.

Also, the deployment of parachains on Kusama is much cheaper than on Polkadot. Therefore, for projects that are newly developed or experiencing economic shortages, they should be deployed on Kusama and then moved to Polkadot.

Quick crash course:

  • Parachains: Is a form of blockchain. Its role is the scaling solution for blockchain.
  • Parathreads: Parathreads are similar to Parachains. Depending on the moment, the two can change back and forth.
  • Bridges: A bridge between Parachains and Parathreads. It allows interoperability with blockchains outside the network such as Bitcoin or Ethereum.

Network Maintainers

This is a group of factors that help maintain network stability. They include: Nominators, Collators, Validators & Governance actors.

  • Nominators: This is a group of nominees whose role is to choose good and reputable validators. Brothers can refer here.
  • Collators: This is a group of people collating and maintaining parachains by collecting parachains transactions from users and passing them to validators.
  • Validators: This is a group of people responsible for confirming transactions and creating new blocks and participating in consensus with other validators.
  • Governance actors: This group plays a decisive role in the development of the project, organizing user polls, voting for other components, requesting technology improvement ...

What is the Kusama (KSM) token?

KSM is the official token in the Kusama ecosystem. It is considered the operating fuel of the entire network.

KSM was born on August 22, 08 through stake & reward.

Basic information about KSM token

  • Ticker: KSM
  • Blockchain: Kusama
  • Token type: Utility Token
  • Consensus: Nominated Proof of Stake (NPoS)
  • Total Supply: 10,000,000 KSM
  • Circulating Supply: 8.980,098 KSM

Token Allocation

Kusama is the beta version of Polkadot so the supply number is also 10,000,000 tokens.

According to the allocation project, 100% of these tokens will be distributed to the DOT token holder and the validators in the network participating in staking.

Parity and the Web3 Foundation (2 companies supporting development projects on Polkadot) have dedicated 1% of DOT token supply to Kusama stakeholders and its community.

Token Sale

Kusama does not organize token sale like other projects.

Token Release Schedule

There are currently 8,980,098 / 10,000,000 tokens in the market. More than 1 million of these tokens will be born through staking.

According to the project, Kusama and Polkadot have similar staking models so the% inflation and rewards will be the same.

You can click here for details: https://wiki.polkadot.network/docs/en/learn-staking#inflation

Kusama (KSM) rate today

What is the Kusama (KSM) token used for?

Below are some of its roles in the network.

Staking Reward

Validator participating in the transaction confirmation on Kusama's network needs to stake a certain amount of KSM. At the same time they will also receive a KSM token reward for their contributions to the network.

The staking bonus at the moment is 20% / year, inflation is 10%.

Voting

User will use KSM token to vote in the referendums on the development of the project.

Fairy

KSM token is used to pay transaction fees in the network.

Implemented parachains

Developers will use KSM tokens for payment when implementing parachains on the Kusama network.

How to earn Kusama (KSM) tokens?

There are many ways to earn KSM tokens, you can refer to the following ways.

DOT indicator token holder

Individuals participating in DOT token trading on the network will receive an equivalent amount of KSM tokens.

You can follow the following instructions to request to receive KSM tokens: https://claim.kusama.network/

Faucet

Anyone can get KSM tokens through an interaction on GitHub. The condition is to own a GitHub account created before June 21, 06.

You can see the instructions here.

Grants from web3 foundation

Developers can apply for funding from web3 (Kusama and Polkadot development platforms).

Bug bounty program

If a user or developer discovers vulnerabilities inside the Kusama network, they will receive a reward from the project.

Kusama (KSM) token storage wallet

Kusama and Polkadot are considered two "brothers", so KSM tokens can be stored on Polkawallet wallet. You can go here to download: https://polkawallet.io/

Or you could choose to host KSM on the reputable exchanges that have listed it.

Kusama (KSM) token trading platform

After a year of launch, KSM coin is currently ranked 88th on CoinGecko and is traded on many different major exchanges such as: Huobi Global, KuCoin, Gate.io, ...

The average total trading volume in the past 30 days reached more than $ 5 million. That has to show liquidity of KSM token is quite good at the moment.

The future of the Kusama (KSM) token

Kusam is the extended blockchain network supporting Polkadot. Kusama warns the developer of the risk.

Without a network like Kusama there is no way for developers to know the potential risks ahead. Therefore, many projects will choose Kusama to deploy dApps, and the need to buy KSM tokens for implementation will also increase. This will also affect the token's price in the future.

KSM is located in the Polkadot ecosystem, which tokens of this ecosystem are very hype about. The proof is that from the beginning of the year until now, these tokens have risen sharply.

In the coming time, when many projects choose Kusama as the platform for dApp development, this is a stepping stone for KSM token to grow strongly.

Should you invest in a Kusama (KSM) token?

I believe that you have also grasped the basic and necessary information about KSM tokens after reading this paragraph.

I will note some main ideas for you to easily make investment decisions:

Roadmap

Project does not update roadmap on website. However, you can follow on Twitter or Telegram to receive the latest updates:

From here until the end of 2020, Kusama will continue to support new startups and upgrade and improve the platform.

Partners

Kusama has many famous big partners such as: Polkadot, chainlink, Web3Foundation, Chainx, Edgeware ...

Kusama's partners have detailed articles on Coin98.NET. You can search and refer to more.

PRODUCTS

Kusama is a platform that provides a facility for development projects so there is no specific product like other projects.

Token

KSM is a Utility token used for the purposes of: Stake, Reward, Fee, Voting.

Summary

Hopefully, my last article has helped you to have a better overview of the Kusama project as well as the KSM token.

And you guys, what do you think about the coin after this article? Please share your opinion in the comment section or join the discussion with 17k people in the community Coin98 Finance.

My name is Nhan, goodbye and see you in the following articles.

Nhan Ngo

The further you look into the past, the further that you can see into the future.