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How Kaspa Solved The Value Trilemma
#Kaspa $Kas @Kaspaunchained
The Monetary Core
The 1 Sompi per gram is the fundamental bedrock that gives the whole Kaspa system value. It has two constrains, a relative one based on actual physics of the total hardware, tx-collisions between parallel blocks and an absolute total throughput, block size block rate.
When Kaspa scales throughput the parallel blocks increases and so does the potential tx-collisions, the system stays closed and the value of the Sompi stays based.
Very much like 1 Sat/vByte is relative to the bitcoin blocksize blocktime.
But in bitcoins case it is only when the total throughput is reached the fee market starts. However if you increase the block size or block time, the relative value of 1 sat / vbyte gets debased because the number of possible vBytes that can be included is inflated.
This is what happened in the block size wars, BCH and then BSV inflated the blocksize to make transactions for users cheaper, but since the cost of the users becomes the income of the miners over time, all the miners future work got absolutely debased.
Increasing the blocksize by 2x and you need 2x more transactions to start the fee market and 2x more to reach the same fee market.
Every doubling of the throughput in any way increases the need for tx's by 2² but on the other hand decreases the incentive to increase the base cost rate for a transaction equally, why would i pay more than 1 Sat/vByte if i know i'm going to be included in the next block anyway?
So basically the fee for inclusion is either paid with direct cost or time, BCH and BSV debased the value of time itself.
1 Sompi per gram, 500,000 grams per block, 10 blocks per second up from 1 block per second.
In bitcoins case it would mean debasement but in Kaspa's case it does not, because of the relative throughput constraint.
To clearify:
In blockchain/Bitcoin: blocktime x blocksize = constraint, friction increases.
In blockdag/kaspa: block time x block size / collision probability = constraint, friction increases.
This right here is what solves the value trilemma, keeping the value of the Sompi based to a constraint regardless of how much the network scales throughput.
This is the hard resistance/friction of the monetary network,
it determines the miner/user heaviness balance, the base friction of the network.
The Mining Network Core
The mining algo fundamentally determines the hard capex/opex heaviness balance, this heaviness represents the friction/resistance of the real world.
Higher capex heaviness compared to another algo means lower resistence, this is preferable because opex cost is variable and inherently a risk when a miner calculates the future reward and ROI time for an asic.
This is why producers continue to create more efficient machines, creating more hashes for less electricity, but the core is the algo, kHH will forever have lower inherent resistence than SHA-256.