Kusama (KSM) – the better Polkadot?
Kusama’s (KSM) share price has hit all-time highs this week. With a rise of over 70 per cent in the last week, Kusama is one of the top performers.
Many software developers have recently become enthusiastic about Kusama (KSM). In relation to its comparatively small market capitalisation and Bitcoin Bank overall size, KSM has a very high deployment volume. In other words, many software developers are working with it. This is often a signal of strong future potential.
What is Kusama?
Unparalleled interoperability and scalability for blockchain developers who want to quickly push the envelope. Built with substrates, almost the same codebase and industry-leading multichain infrastructure as Kusama’s cousin Polkadot.
Technically, KSM is similar to the Polkadot protocol and has a common goal: to build bridges between blockchains.
Kusama sees itself as a testing ground for Polkadot applications and advertises itself as a „Polkadot experiment“. Kusama was dreamed up by Gavin Wood, the co-founder of Polkadot and former CTO of Ethereum.
Incentives for software developers and applications
Many teams will choose Kusama as their Dapp or Parachain and stay exclusively on Kusama. Other teams will join Kusama as a temporary preparation for deployment on Polkadot.
Among software developers, KSM is very popular. A big factor in KSM’s success is its low application cost compared to Polkadot. Most blockchain applications based on Polkadot are not yet ready for the market. Kusama deliberately creates incentives here as a low-cost testing ground for developers and thus attracts many resources. This has also been reflected in the price development of KSM.
Kusama and Polkadot: The crucial difference
Even though KSM strongly resembles Polkadot in design and functionality, Kusama and Polkadot are two independent blockchain projects with different goals.
Polkadot’s slower but more structured governance method ensures stability and security. In particular, Polkadot is suitable for projects with high quality and low risk, for example financial applications. Kusama, on the other hand, can be used for riskier small projects due to its lower economic and technical barriers to entry.
Parachain slot auctions: Speculation for the coveted slots
Kusama, like Polkadot, consists of a so-called relay chain. So-called parachains are linked to this relay chain in order to be able to interact with each other. Polkadot and KSM have a maximum of 100 parachain slots defined in the protocol. These are allocated via a so-called candle auction process for a limited period of time.
Kusama becomes operational with the allocation of the slots. The KSM Coin serves as a fee to validate transactions, similar to gas on Ethereum. The recent price developments of KSM can be attributed in particular to the upcoming allocation of the parachain slots. How KSM will develop after last week’s price breakout remains to be seen. The upcoming technical progress of the protocol will have an influence on the price in any case.