The role of Kusama (KSM) in level 2 downsizing solutions
Like the first public blockchain of the Ethereum world, Bitcoin was at the forefront of the cryptocurrency revolution. However, since its scalability and usability continue to be a great challenge for widespread adoption, other solutions have emerged to help fill the gap.
One of these solution is Kusama, a level 2 downsizing solution developed by the DAO Foundation in collaboration with Binance Labs. In this article, we will explore the role of Kusama (KSM) in the layer 2 downsizing solutions and its potential impact on the cryptocurrency ecosystem.
What is Kusama?
Kusama is a level 2 scalability solution based on Ethereum blockchain. It aims to increase the speed and usability of the network by creating a new chain capable of performing transactions faster by Ethereum, without sacrificing safety. The project uses off-chain storage, known as plasma, to allow more efficient and scalable transactions.
KSM: Kusama’s native token
At the base, Kusama (KSM) is the native cryptocurrency of the platform. Therefore, it plays a crucial role in facilitating cases of use and applications based on Kusama. In this context, KSM acts as a bridge between the Ethereum network and the Kusama ecosystem.
Level 2 reduction solutions: a need for speed
Since Blockchain technology continues to mature, scalability remains a fundamental concern. The level 1 downsizing solutions such as Bitcoin’s Lightning network have shown promises, but have significant limits. They require significant computational resources and energy consumption, making them less efficient than level 2 solutions.
The unique sales points of Kusama
So what Kusama distinguishes from other level 2 downsizing solutions? Here are some key aspects of its unique strengths:
- Chain storage : Kusama uses a new approach called plasma for storage and out of load processing from the main chain, reducing energy consumption and increasing scalability.
- Fast transaction times
: With a reduced network load and an optimized transaction order, Kusama allows faster transaction times, up to 4-5 seconds, compared to the current average of Ethereum of about 15 seconds.
- Increase in the block size : Kusama allows larger block size, making it easier to manage more complex transactions without sacrificing safety.
Advantages of the use of KSM
The widespread adoption of level 2 downsizing solutions such as Kusama offers numerous benefits:
- Fast transaction times : as mentioned above, the processing of the optimized transactions of Kusama and the reduction of the network load enable faster transaction times.
- Increase in scalability : With more efficient architecture, Kusama can manage a higher volume of transactions per second.
- Reduced energy consumption
: By downloading the accumulation and processing activities from the main chain, energy consumption is significantly reduced.
Applications and use cases
The potential impact of Kusama extends beyond the layer 2 downsizing solutions to larger applications:
- Defi (decentralized finance) projects : the fastest transaction times of Kusama can allow more complex use cases, such as high frequency trading and decentralized loans.
- Game platforms : Kusama-based games can take advantage of the scalability of the platform and the off-chain storage skills.
Conclusion
Kusama (KSM) is an innovative solution that faces the challenges of scalability faced by Ethereum and other level 1 reduction solutions. By exploiting its unique approach to out of chain storage and plasma technology, Kusama allows faster transaction times, increased scalability and a reduction in energy consumption.
The widespread adoption of Kusama can have vast implications for various applications, from Difi projects to the game platforms.