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Choose your quick section of our Kusama review below.
A Quick Overview of our Kusama Review:
Kusama is often use as a test bed or base for development before projects are released on Polkadot, however, there are some projects that remain on Kusama’s network, providing them with a diverse and growing ecosystem.
What is Kusama?
Kusama is a parallel network that was launched in 2019 and is built using the same code base as well as the same structure, working more rapidly than Polkadot. Kusama offers the same environment as Polkadot that can be used by developers to test out new technologies, innovate on their existing projects, and more.
Key Features and Takeaways of Kusama
Kusama, a parallel network to Polkadot, has the following key features and takeaways:
Kusama is often use as a test bed or base for development before projects are released on Polkadot, however, there are some projects that remain on Kusama’s network, providing them with a diverse and growing ecosystem.
Kusama has been referred to as the “Canary Network” for Polkadot, referring to the practice of miners who carry canaries with them into coal mines to offer an early warning of carbon monoxide and other hazardous gasses that could be harmful or cause the mine to explode.
As a Canary Network, Kusama is the canary that warns developers of any problems with their projects along with any dangers and/or vulnerabilities in the code that they are building.
Kusama is also often referred to as Polkadot’s cousin and developers are often warned to expect chaos and a lack of guarantees when they build on the Kusama network. This as result of the unaudited nature of Kusama in acting as a development environment.
Kusama, in its unaudited nature, may contain numerous vulnerabilities, however, it offers developers with what they need to refine and perfect their projects.
Kusama is not merely a testnet but also a real blockchain that has its own governance, and which operates as a decentralised autonomous organisation (DAO) and has its own native token, KSM.
Kusama intends to provide developers with a scalable blockchain platform that allows them with the freedom to connect with developers from other chains where they can meet and deploy applications.
Kusama consists of participants where each user can have several roles to support the function of the network, platform, and ecosystem. There are builders who are developers who build parachains, bridges, and parathreads, and network maintainers who ensure that the platform remains secure, stable, and that there is progress.
On the Kusama platform, users can use KSM to make proposals for changes to either the protocol or the code. In addition to this, KSM holders can also form part of the Referendum Chamber, the Council, or the Technical Committee. Each level of participation plays a vital role in the functionality and operation of the ecosystem.
Kusama uses an incredibly unique voting concept named the Adaptive Quorum Biasing. By using this mechanism, Kusama ensures that enough people vote for a proposal by setting a threshold which varies from one proposal to the next and when the votes do not add up, the system adapts by lowering the threshold.
Kusama has a Treasury which contains all the fees and lost deposits. KSM holders can use treasury funds for as much as 5% of their tokens, given that they bond it to a proposal. By using this, Kusama incentivises participants who produce improvements for the network.
There are several types of blockchains hosted on Kusama including parathreads and even simple chains. A Parachain consists of a simple blockchain and a relay blockchain, with the simple chain dependent on the protection of the relay chain. Simultaneously, the relay chain validates transactions on new blocks created on the simple chain.
Kusama Mining
Kusama is a nominated Proof-of-Stake network and therefore, KSM cannot be mined but can, however, be staked.
Step 1 – Create a Wallet
A wallet for the staking of KSM can be done in a variety of ways, the most common being staking through the Polkadot JS application. The first step is for users to navigate to Chrome, Brave, or Firefox Store from their web browsers, and download the relevant extension for the app.
If users wish to use the webpage for the app directly, they can navigate to the Polkadot JS website, select “Accounts” and “Add New Account”.
Users can complete the necessary details and ensure that they store their mnemonic seed phrase safely, either offline, or on a secure ledger.
Step 2 – Bonding KSM
Once the user’s account setup is complete, they can start staking. The first step is to navigate to the settings page and ensure that everything is specifically set according to the parameters of the Kusama network.
Users can select the option for “Staking” from the left menu and the “Staking Overview” will open, showing the user all the validators who are present on the Kusama network. Users can select “Account Actions” and note the following:
Users can have two separate accounts on Kusama, one to store their funds (“Stash”) and another to control staking.
Users must keep in mind that transaction fees are charged to manage assets between two distinct accounts.
Before being able to stake, the user must bond their assets and to do so, the user must select the option “+Nominator”. A pop-up will appear, and the user can enter an amount under “value bonded”. It is important that users do not insert the total value of their KSM as they still need to pay transaction fees along with the reaping threshold.
Once the user has selected “next”, they will be asked to confirm the transaction. It is important for users to note that the current unbonding period in Kusama is seven days.
Step 3 – Select a Validator
Once the assets have been bonded, they are locked, and they may be subjected to “slashing” if the selected validator that the user nominated misbehaves. During this step, the user can select up to 16 different validators to send their assets to.
Users can select “nominate” in the “account actions” tab and the pop-up will ask the user which validators they wish to select. Once selected, the user will be prompted for their password to confirm their selection. Once this step is complete, staking will proceed accordingly.
Pros and Cons
| ✔️Pros | ❌Cons |
|---|---|
| Kusama can scale and accommodate an unlimited number of projects without slowing the network down | Kusama, like Polkadot, is facing fierce competition in finding its place among smart contracts and Proof-of-Stake projects |
| It eliminates the need for a hard fork as Kusama is fortified against such possibilities | Kusama is more than a testnet for Polkadot but it is still a basic testing ground for projects and some of these may not thrive on it and must be moved |
| Kusama is truly decentralised as the holders of KSM run the network instead of a handful of specific individuals or participants | Both Kusama and Polkadot’s Parachain may seem superior to Ethereum but it requires for the application to exist on another Parachain before it can be launched on Polkadot |
| Kusama is highly secure as result of its decentralised nature | |
| Kusama allows developers with access to different blockchains through the KSM token, offering them with flexibility |
Transaction Fees
| Type of Fee | Information |
|---|---|
| Transaction Fees | 0.01 KSM |
| Reaping Threshold (Staking) | 0.01 KSM |
Should you buy Kusama?
With the widespread adoption and development of decentralised finance (DeFi), it is the future of cryptocurrency as well as blockchain technology as it is further incorporated into daily live.
Previous years have seen the launch of many projects, however, there were many that were not legitimate, and these did not hold a future in DeFi. The overall Polkadot and Kusama ecosystem along with projects built on this technology shows significant potential for future growth, and as adoption occurs more rapidly, token growth and value is more measured and realistic.
Kusama may be a newcomer to the blockchain industry but it shows a significant amount of potential as it benefits from Polkadot’s endorsement, which will prove to be an attractive investment opportunity to many investors.
How to buy Kusama (KSM)
Step 1 – Open an account on Binance
Navigate to the official Binance website and select “Register Now”. You will be redirected to a “Create a Free Account” where you can either register with your email address or your mobile number.
You can enter your email address and user-selected password or select the “Mobile” option at the top of the form. Select your country code and enter your mobile number along with your user-selected password.
Once you have completed the necessary fields, you can read and accept the Terms of Service before selecting “Create an Account”.
You may have to complete a Security Verification that will confirm that you are not a robot. Next, there is an account verification. During this, a 6-digit verification code is sent to the email address or mobile number that you provided. The code is only valid for 30 minutes and must be entered in the blocks provided on this page.
Once the verification is completed, a welcome page will load, and you will be given the options through which you can either trade or purchase cryptocurrency. If you are new to crypto, you can visit the “Learn More” Section at the bottom of the page.
Step 2 – Secure account with two-factor verification
On the trader’s dashboard, select the option to secure your account with two-factor verification. Even though phone verification is a secure option, the most preferred and secured method is to make use of the Google Authenticator.
Once downloaded and installed, either scan the QR code or type in the one-time, unique code provided to add your Binance account credentials onto Google Authenticator.
Once completed, write down the back up key provided to recover your account on Google Authenticator in case you lose or misplace it. In the final step, enter the 6-digit code which you will receive on your registered email address along with the Google verification code.
Step 3 – Deposit funds
Binance allows for the purchase of cryptocurrencies via fiat deposits as well as cryptos. Deposits can be accessed from the following locations:
The “Welcome to Binance” banner.
Hovering over “Buy Crypto” at the top of the webpage and selecting your preferred method.
Selecting “Deposit” on the “balance details” section on your traders dashboard.
Once you have selected the option to “Deposit”, you can select whether you wish to deposit cryptocurrencies from another wallet, or whether you want to make a fiat deposit.
For Crypto deposits, follow these steps:
Select your coin between Bitcoin, Ethereum, TetherUS, BNB, or ETC.
Select the network to be used between BEP2, BEP20 (BSC), ERC20, or TRC20 and accept the conditions for using the network.
Copy the address or scan the address QR code from the wallet where you are depositing and follow further prompts. Kindly note that each network has its own set of network confirmations between 1 up to 15 confirmations before the deposit will be done.
For deposits in Fiat currencies, follow these steps:
Select the deposit currency from the dropdown list. To gain access to more currencies, it is necessary to verify your identity and face.
Select the payment method to be used, depending on the currency chosen.
Enter the deposit amount and any other details. Kindly note that the transaction fee will be displayed along with the balance after this is subtracted.
Continue with the deposit.
Step 4 – Start Trading
Once you have completed your deposit, you can navigate to the “Markets” section at the top of the page to view the available cryptocurrencies. From here, you can buy, sell, and trade currencies at competitive prices.
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Frequently Asked Questions
When was Kusama first launched?
Kusama was founded in 2019.
Who founded Kusama?
The creators of Polkadot founded Kusama, namely Gavin Wood, Peter Czaban, and Robert Habermeier.
What is “ICO”?
It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.
When was Kusama’s ICO and how much did it raise?
Kusama did not have an ICO for KSM.
Is Kusama legit?
Yes, Kusama is legit.
What is Kusama’s total supply?
There is a maximum supply of 10 million KSM.
What is the purpose of Kusama?
Kusama’s main purpose is to serve as a canary network for Polkadot, focused on helping the community and its developers in testing out their future projects before they are released on Polkadot.
On which blockchain is Kusama based?
Kusama is built on Substrate which is a blockchain building kit which was developed by Parity Technologies.
Does Kusama work with smart contracts?
Kusama does not natively support smart contracts. However, it is still possible to build applications on Kusama.
Does Kusama have potential to become more valuable?
Yes, Kusama has the potential to become more valuable as it already has endorsement provided by Polkadot and it allows developers with freedom, flexibility, scalability, and security to develop a variety of applications.
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