Kaspa

PHANTOM

Bitcoin

<a style="text-decoration:none" href="https://bsc.news/post/kaspa-blockchain-kas-token-guide" rel="noopener noreferrer nofollow">Kaspa</a> stayed on proof-of-work because its founder, Yonatan Sompolinsky, argues that proof-of-work is the only consensus method that samples an honest majority of the network in real time, something proof-of-stake cannot do without separating block production from the right to publish a block.&nbsp;
Kaspa combines that proof-of-work base with a structure called a blockDAG, which lets it confirm blocks roughly once every 100 milliseconds instead of forcing miners onto a single slow chain like&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/what-is-bitcoin-how-it-works-mining-digital-gold-guide" rel="noopener noreferrer nofollow">Bitcoin's</a>.
<h2 id="span-span-strong-what-is-kaspa-s-proof-of-work-approach-strong-span-span">What Is Kaspa's Proof-of-Work Approach?</h2>
Kaspa launched in November 2021 as a fair-launched, proof-of-work network. There was no premine, no insider token allocation, and no presale. Every KAS token in circulation has been mined openly since genesis.&nbsp;
The project grew out of blockDAG research at the Hebrew University of Jerusalem, tracing back to the GHOST protocol section of Ethereum's original white paper and continuing through the SPECTRE and PHANTOM research papers into the GHOSTDAG protocol Kaspa runs today.
Mining uses an algorithm called kHeavyHash, which combines matrix multiplication with two Keccak hash functions and rewards raw processing power through ASIC hardware, the same general approach Bitcoin uses.
<h2 id="span-span-strong-why-didn-t-kaspa-move-to-proof-of-stake-strong-span-span">Why Didn't Kaspa Move to Proof-of-Stake?</h2>
Sompolinsky has framed the decision around a concept he calls Real-Time Decentralization, or RTD. His argument is that proof-of-stake splits consensus into two separate steps: producing a block and earning the right to publish it, typically through validator selection. In proof-of-work, those two steps happen as a single atomic act.&nbsp;
A mined block is simultaneously the lottery ticket and the vote. Sompolinsky argues that atomicity is what gives a fast proof-of-work network access to real-time randomness, something a staking-based validator schedule cannot replicate in the same way.
This does not mean Kaspa treats proof-of-work as flawless. Supporters of the design acknowledge the usual proof-of-work tradeoffs:
<ul>
 <li>It requires real electricity and hardware costs, unlike staking</li>
 <li>ASIC mining can concentrate hardware production among a small number of manufacturers</li>
 <li>It inherits Bitcoin's general security assumptions rather than experimenting with newer, less battle-tested models</li>
</ul>
<h2 id="span-span-strong-how-does-ghostdag-solve-bitcoin-s-speed-problem-strong-span-span">How Does GHOSTDAG Solve Bitcoin's Speed Problem?</h2>
Bitcoin's proof-of-work is slow by design, averaging one block every 10 minutes, partly because faster block times cause more blocks to be mined at nearly the same moment and then discarded as orphans. Kaspa's GHOSTDAG protocol removes that tradeoff by not discarding those parallel blocks. Instead, a blockDAG (block Directed Acyclic Graph) lets multiple blocks coexist, and GHOSTDAG orders them into an agreed-upon sequence rather than picking one and throwing the rest away.
Following the Crescendo hard fork in May 2025, Kaspa's mainnet reached 10 blocks per second, up from roughly one per second before. Kaspa's roadmap targets 32 to 100-plus blocks per second in future upgrades.
<h2 id="span-span-strong-what-has-kaspa-built-on-top-of-proof-of-work-strong-span-span">What Has Kaspa Built On Top of Proof-of-Work?</h2>
Kaspa's team has spent the past year adding programmability on top of its proof-of-work base rather than replacing the consensus layer to get it.
The Toccata Hard Fork
Toccata activated on June 30, 2026, at DAA score 474,165,565. It added covenant-like programmability, a new transaction format called transaction v1, script pricing, zero-knowledge verification, and support for KRC-20 tokens.&nbsp;
Seven weeks after activation, on-chain data tracked by Kaspalytics showed 1,196 covenant-creating transactions and more than 2,700 covenant outputs in a single 24-hour window, with 86% of recently mined blocks coming from the updated v2.0.1 node software.
KaChat and On-Chain Messaging
On August 27, 2026, Kaspa's encrypted messaging and payments app, KaChat, shipped version 4.0, adding desktop and web support alongside Tangem hardware wallet integration and an on-chain social feature called KaPosts.
<h2 id="span-span-strong-where-does-kas-trade-today-strong-span-span">Where Does KAS Trade Today?</h2>
As of August 31, 2026, KAS traded around $0.028, giving it a market capitalization of roughly $774 million. Circulating supply sits near 27.7 billion KAS against a fixed maximum supply of 28.7 billion, meaning about 96% of all KAS that will ever exist is already in circulation. Kaspa's emission schedule reduces the block reward gradually each month rather than through Bitcoin-style halving cliffs; the most recent scheduled reduction landed on August 5, 2026.
<h2 id="span-span-strong-frequently-asked-questions-strong-span-span">Frequently Asked Questions</h2>
Does Kaspa use proof-of-work or proof-of-stake? Kaspa uses proof-of-work exclusively. It has never used or planned to switch to proof-of-stake.
What is GHOSTDAG? GHOSTDAG is Kaspa's consensus protocol, built on a blockDAG structure that lets multiple blocks exist in parallel and orders them into a single agreed sequence, instead of discarding all but one as Bitcoin's chain does.
Is Kaspa a Layer 1 or Layer 2 blockchain? Kaspa is a Layer 1 blockchain. Layer 2 systems, including the Kasplex zkEVM, run on top of it to add Ethereum-compatible smart contracts.
<h2 id="span-span-strong-conclusion-strong-span-span">Conclusion</h2>
Kaspa's proof-of-work choice rests on a specific technical argument, that mining atomically ties block production to voting rights in a way staking cannot, combined with a blockDAG structure that removes the throughput limits older proof-of-work chains accepted. That combination currently runs at 10 blocks per second, has processed real covenant and token transactions since the June 2026 Toccata upgrade, and secures a network with a fixed 28.7 billion token supply that is already about 96% in circulation.
<h2 id="span-span-strong-resources-strong-span-span">Resources</h2>
<ol>
 <li><a style="text-decoration:none" href="https://kaspa.org/about-kaspa/" rel="noopener noreferrer nofollow">Report by Kaspa</a>: Official project overview covering Kaspa's fair launch and GHOSTDAG research lineage</li>
 <li><a style="text-decoration:none" href="https://www.coindesk.com/sponsored-content/beyond-self-custody-staghunt-and-the-missing-layer-of-the-internet" rel="noopener noreferrer nofollow">Report by CoinDesk</a>: Explains Sompolinsky's Real-Time Decentralization argument for proof-of-work</li>
 <li><a style="text-decoration:none" href="https://captainaltcoin.com/kaspa-price-jumps-20-as-toccata-upgrade-finally-shows-what-it-can-do/" rel="noopener noreferrer nofollow">Report by CaptainAltcoin</a>: On-chain Toccata upgrade activity seven weeks after activation</li>
 <li><a style="text-decoration:none" href="https://coinmarketcap.com/cmc-ai/kaspa/latest-updates/" rel="noopener noreferrer">Report by CoinMarketCap</a>: Latest Kaspa network updates, including the KaChat 4.0 release</li>
</ol>

Why Did Kaspa Choose Proof-of-Work When Others Moved to Staking?

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