Kaspa, a proof-of-work cryptocurrency and blockchain platform leveraging the innovative GHOSTDAG protocol, has been a significant talking point in 2025. The most notable development, the Crescendo Hard Fork, activated in May, has transformed the network’s performance, positioning it as a formidable player in the blockchain space.
With a market capitalization of approximately $1.8 billion and a top-50 ranking among cryptocurrencies, Kaspa is gaining attention due to its scalability and potential to rival established networks. This write-up explores Kaspa’s key updates from the first five months, focusing on the Crescendo Hard Fork, its technical advancements, and other developments shaping its trajectory.
What is Kaspa?
Kaspa is a layer-1 blockchain designed for high transaction throughput and instant confirmations. Unlike traditional blockchains that process blocks sequentially, Kaspa’s GHOSTDAG protocol allows parallel blocks to coexist, reducing bottlenecks and enabling faster transaction processing.
Kaspa processes 10 blocks per second (BPS), with its native $KAS token trading at around $0.07, according to CoinMarketCap. The project’s focus on scalability has drawn comparisons to Bitcoin, positioning it as a potential solution for scaling challenges in proof-of-work systems.
The Crescendo Hard Fork: A Game-Changer for Kaspa
The most significant update for Kaspa in 2025 is the Crescendo Hard Fork, activated on May 5, 2025, when the network’s Difficulty Adjustment Algorithm (DAA) score reached 110,165,000. Detailed in a BSC News report on April 1, 2025, this hard fork increased Kaspa’s block production rate from 1 BPS to 10 BPS, reducing block time from 1,000 milliseconds to 100 milliseconds.
The technical upgrade, driven by Node Version v1.0.0 and built in the Rust programming language, has significantly enhanced the network’s scalability and user experience.
Crescendo has delivered an outstanding increase in transaction throughput, achieving nearly 4,000 transactions per second (TPS) with 80-90% efficiency under current mempool policies. If transaction demand exceeds capacity, efficiency could reach 100%. The reduced block time of 100 milliseconds allows transactions to be included almost instantly, with continent-wide reach in 50 milliseconds and mining completion in 200 milliseconds.
This efficiency stems from increased block parallelism, which reduces miner monopolies and enhances fairness, though it slightly increases collision rates as a trade-off for scalability.
Kaspa Improvement Proposals (KIPs)
The hard fork integrated several Kaspa Improvement Proposals (KIPs), expanding the network’s functionality:
- KIP-9: Implements the STORM (STORage Mass) sub-protocol, enabling UTXO storage plurality for future-proofing.
- KIP-10: Adds support for basic covenants and additive addresses, enhancing scripting capabilities.
- KIP-13: Enforces stricter transient storage requirements to maintain network stability.
- KIP-14: Supports payloads for arbitrary data, such as smart contract calls, laying the foundation for layer-2 solutions.
- KIP-15: Introduces “archives only” transactions, enabling trustless sequencing and acceptance proofs, which could support pre-zero-knowledge layer-2 nodes.
These KIPs position Kaspa for advanced features, particularly in smart contract development and scalability, making it a competitive layer-1 blockchain.
New Wallet and Node Upgrades
A key user-facing change was the introduction of the Kaspa-NG wallet, which replaced the retiring Kaspa web and KDX wallets. Available at Kaspa’s official wallet portal, Kaspa-NG offers improved security and functionality, ensuring seamless interaction with the upgraded network. Node operators were required to update to the latest version, with resources provided for node upgrades and post-fork solo mining.
Smart Contract Development
While the Crescendo Hard Fork dominates Kaspa’s updates, other developments have contributed to its ecosystem. The blockchain protocol is working on smart contract capabilities, as indicated on a kas.live page updated in 2025. Kaspa Smart Contracts promises to bring programmable blockchain capabilities to its fast layer-1 platform.
“The next evolution of the Kaspa ecosystem is coming. Smart contracts will soon bring programmable blockchain capabilities to the world’s fastest layer-1 platform,” Kas.live website reads.
With enhanced security, lightning-fast speed, low fees, and developer-friendly documentation for rapid development, Kaspa Smart Contracts aims to become a game-changing innovation for developers.
Although no specific release date was provided, this ongoing effort suggests Kaspa’s ambition to support decentralized applications and layer-2 solutions, potentially expanding its use cases and adoption.
Leading Player in the Layer 1 Ecosystem
The Crescendo Hard Fork is a pivotal moment for Kaspa, addressing key blockchain challenges like scalability and transaction speed. By increasing TPS to 4,000 and reducing confirmation times, Kaspa is better equipped to handle high transaction volumes, making it attractive for applications requiring fast, reliable processing.
Integrating KIPs and the Kaspa-NG wallet further strengthens the ecosystem, while focusing on smart contracts signals long-term ambition. These advancements align with Kaspa’s goal of becoming a leading layer-1 blockchain, capable of competing with established networks like Bitcoin and Ethereum.
Looking ahead, Kaspa’s smart contract development could be a game-changer, enabling decentralized applications and attracting developers to the ecosystem. If Kaspa continues to build on the success of the technical upgrade, its position as a top-tier blockchain could solidify.
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