BTCS Inc., a blockchain technology focused company, announced the ongoing expansion of its blockchain infrastructure operations with the addition of Kusama (KSM), a $1.5 billion scalable multichain network founded in 2016 by Polkadot founder, co-founder, & former CTO of Ethereum, Dr. Gavin Wood.
KSM is built from the teams at Web3 Foundation and Parity Technologies. KSM’s primary use case is to facilitate testing of new code and features within an experimental development environment for teams that want to move fast exclusively on KSM or join KSM as temporary preparation grounds before deployment onto DOT. “This flexibility is what allows for rapid development and innovation.” mentioned Charles Allen, Chief Executive Officer of BTCS, Allen continued “with over $6.4 million of cash on hand the recent pullback in the overall crypto market has created an optimal opportunity to further expand our blockchain infrastructure operations.”
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Kusama Transaction Speed and Use Cases
The KSM network can process up to 1,000 transactions per second (TPS), which is 200x greater than the average speed of Bitcoin’s 5 TPS. Additionally, KSM has modified governance parameters that enable quicker upgrades, which are 4x faster than Polkadot.
Some of the applications that have been launched on KSM as of today include, DeFi, smart contracts, gaming, robotics, NFTs, metaverse(s), Internet of Things (IoT), and Decentralized Autonomous Organizations (DAOs).
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Kusama’s Consensus Algorithm
KSM uses a variant of Proof of Stake (“PoS”) called Nominated Proof of Stake (“NPoS”). This means validators can be nominated by independent reviewers (who are KSM token holders) called nominators. In addition to generating revenue by being a KSM validator, BTCS set up the technical work to integrate KSM into the Company’s planned, upcoming staking-as-a-service feature once its launched.
“In the case of BTCS, we’ve set up our KSM validator node, have bonded 4,206 KSM tokens, valued at approximately $800,000 and are now generating revenue from that node. On top of that, the technical work has been completed to allow KSM to be integrated into our staking-as-a-service offering once launched,” added Mr. Allen.
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Validating vs Staking
The process of blockchain validation, as in the above example with the Kusama node, includes special intellectual property (IP), technical know-how, and regular maintenance to ensure efficiency. Users who stake, as described below, leverage validator nodes and pay a fee to stake their crypto. BTCS’s Kusama validator node is now ready to be deployed as part of our Staking-as-a-Service offering once launched. Staking, on the other hand, implies a general, more passive activity that generates rewards net of validator fees. Staking doesn’t require the same extent of technicality, node operation, node maintenance, and IP that is expended for validation.
Simply put, staking allows users to generate an annual percentage yield (“APY”) on their staked assets whereas validator node operators charge a fee on users’ staked asset rewards in addition to earning an APY on bonded or staked crypto. As such, the highly-scalable nature of running validator nodes is the premise behind BTCS’ Staking-as-a-Service platform.
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