Kaspa is the third-generation blockchain technology

Bitcoin is the first-generation blockchain technology that uses POW with a high degree of decentralization. Ethereum is the second-generation blockchain technology with smart contracts, and due to the adoption of POS, it is less decentralized compared to Bitcoin. The third-generation blockchain balances decentralization, high TPS, and good scalability. Kaspa emerged with this purpose in mind.

Kaspa integrates both POW and proof of stake. The generation of KAS tokens occurs through POW mining, while TPS is achieved through proof of stake DAG.

Why did KAS surge 100 times?

KAS surged over 100 times from its issuance to being listed on the BingX exchange. The major reason is that KAS enabled the mining machines that were previously idle for ETH mining to be fully utilized. After Ethereum transitioned to POS, the previously used POW mining machines became obsolete, and the ecosystem of ETC (Ethereum Classic, which still employs POW after the Ethereum hard fork) was not viewed favorably. POW had a greater advantage in the initial token distribution compared to Ethereum. Ethereum's smart contracts led to high GAS fees for token issuance on the ETH chain, making token prices easily manipulable. This significantly increased the risk for retail investors in purchasing alpha project tokens on DEX.

POW tokens are generated through mining during the allocation process, providing an equal opportunity for everyone during token distribution. Hence, they have been embraced by retail investors.

It is foreseeable that the POW's large token distribution method will replace the way coins are issued via smart contracts on Ethereum. The issuance of new project tokens on Ethereum will present a severe two-tiered situation: institutional investments for major projects while retail investors are no longer willing to purchase tokens for small projects.

Another reason is the strong support of the Israeli community for KAS. The Twitter community has reached 174K followers, nearly equivalent to the fan base of Blur, the NFT trading market in 2023. KAS is a public chain, and a public chain cannot exist without its community. Projects developed on public chains will initially be used by the community of the public chain.