$4.47

Kusama is an experimental blockchain network that aims to offer a scalable and interoperable environment for developers. It is often referred to as a "canary network" and shares much of its code with Polkadot. Built on Substrate, a framework by Parity Technologies, Kusama allows projects to test their ideas in a real-world environment before deploying on Polkadot. It features a sharded architecture and is designed for fast-paced innovation. With lower barriers for parachain deployment and validator bonding, it is particularly attractive to early-stage projects and those seeking to experiment.

Kusama was created by Parity Technologies, the same team behind Polkadot. Its founder is Dr. Gavin Wood, a prominent computer scientist who also co-founded Ethereum. Parity Technologies employs over 100 blockchain engineers globally. Kusama also receives support from the Web3 Foundation, which provides grants and research assistance to advance decentralized web technologies. The foundation's growth team actively contributes to Kusama's community development, helping to foster its ecosystem.

Kusama stands out due to its focus on rapid development and experimentation. It uses a nominated proof-of-stake (NPoS) consensus, which is more energy-efficient than proof-of-work. The network supports on-chain upgrades without forks and facilitates cross-chain communication via XCMP. Governance is decentralized and permissionless, allowing KSM holders to vote on proposals. Notably, the voting and enactment process takes only about 15 days, making it roughly four times faster than Polkadot's, enabling swift iteration for projects built on it.

As of November 2020, Kusama had a circulating supply of approximately 8.47 million KSM, with a total supply of 10 million. The supply is not fixed; it increases by 10% annually due to inflation. The distribution of newly minted tokens depends on the staking ratio: if 50% of KSM is staked, validators receive all inflation rewards; otherwise, some funds go to the Kusama Treasury. Initially, KSM was airdropped to Polkadot token sale participants at a 1:1 ratio, and a faucet was later decommissioned. Unlike Polkadot, Kusama has not undergone redenomination.

Kusama's security is based on a nominated proof-of-stake (NPoS) mechanism. Nominators stake KSM to elect validators who process transactions. If a validator behaves improperly or fails to meet performance standards, their stake can be slashed. Cross-chain transactions are handled through a Merkle tree-based queuing system, where relay chain validators move messages between parachains in a trustless and secure manner. This design ensures network integrity while enabling interoperability.

KSM is available for trading on many well-known exchanges, including Binance, OKEx, and Huobi Global. The most active trading pairs are KSM/USDT, KSM/BTC, and KSM/ETH. For those interested in purchasing KSM with fiat currency, additional information can be found in our comprehensive guide on buying cryptocurrencies.