Draft:Kaspa (cryptocurrency)

Kaspa is a cryptocurrency that leverages proof-of-work consensus mechanism and introduces the GHOSTDAG protocol to enhance scalability and transaction speed within its network. Unlike conventional blockchain technologies, Kaspa implements a blockDAG (Directed Acyclic Graph) structure, aiming to address the scalability and efficiency challenges of traditional blockchains.

History
Kaspa originated from the research and development efforts of DAGLabs, co-founded by Yonatan Sompolinsky. Although DAGLabs eventually disbanded, the foundational work contributed significantly to the Kaspa project, which continued to evolve with the involvement of former DAGLabs developers and researchers. The project emphasizes a decentralized development approach, with no central authority overseeing its progression. Initial funding was secured from Polychain Capital, ensuring the project's launch without premined coins, in alignment with principles of fairness and transparency.

Technology
Kaspa's architectural framework diverges from conventional blockchain models by incorporating a blockDAG (Directed Acyclic Graph) structure, which enables the concurrent processing of blocks and transactions. This structural choice is intended to improve the network's transaction throughput and operational efficiency. At the core of Kaspa's design is the GHOSTDAG protocol, a consensus mechanism developed to enhance the speed and reliability of the consensus process within the network. The implementation of GHOSTDAG aims to provide a secure environment for transactions by addressing some of the scalability and security challenges associated with traditional blockchain systems.

Development
The development phase of Kaspa introduced the DAG KNIGHT protocol, designed to manage network latency autonomously and improve adaptability to latency changes. This initiative is part of a broader effort to enhance network security and efficiency. In addition, Kaspa transitioned its core programming from Go to Rust, aiming to utilize the latter's improved performance and safety features. A significant achievement in this phase was reaching a 10 Blocks Per Second (BPS) throughput on the testnet, which indicates an increase in the network's capacity for processing transactions.

Energy Consumption Critiques and Photonic Mining Innovations
The Proof of Work (PoW) consensus mechanism, which Kaspa employs, has faced scrutiny due to its high energy demands, a widespread concern within the cryptocurrency community. Acknowledging these energy concerns, a team from Stanford University proposed using photonic circuits, aiming to lower the energy needs for mining activities. These innovative circuits are designed to make mining more accessible and feasible for a broader audience by reducing reliance on cheap energy sources. The researchers' development, LightHash, builds upon HeavyHash, a system used by Kaspa and other networks, offering a promising reduction in energy consumption—potentially up to ten times less than current digital processors. This approach suggests a move towards more energy-efficient cryptocurrency mining, addressing critical environmental concerns associated with PoW mechanisms and indicating a path forward for Kaspa and similar technologies to adopt more sustainable practices.