Kusama (KSM)

Network Testing and Innovation

Kusama acts as a "canary network" for Polkadot, meaning it is a fast-moving, experimental platform where new features and upgrades are tested before being deployed on Polkadot. This helps developers try out ideas in a real environment.

Parachains and Custom Blockchains

Kusama allows developers to build and control their own blockchains called parachains. These parachains can be customized for specific uses like finance, gaming, identity, or NFTs, offering more flexibility than typical smart contract platforms.

Interoperability

Kusama enables different blockchains and apps to communicate and share data with each other, creating an interconnected network of blockchains that can work together smoothly.

Governance and Staking

Token holders can participate in governance by voting on network decisions and upgrades. Kusama also supports staking, where users lock tokens to help secure the network and earn rewards.

Transaction Fees and Resource Purchase

The native token (KSM) is used to pay for transaction fees and to buy resources like "core time" needed for parachains to operate on the network.

Pros

• Kusama is a fast and experimental blockchain network, often called the "wild cousin" of Polkadot, allowing developers to test new ideas quickly.
• It supports many projects without slowing down the network, making it scalable.
• Kusama offers a flexible and innovative environment for building decentralized apps and parachains.
• It has a strong community and is part of the Polkadot ecosystem, which adds to its growth potential.
• Kusama transactions are faster compared to Polkadot, enabling quicker updates and deployments.

Cons

• Kusama is less stable and more chaotic than Polkadot because it is designed for experimentation and early testing.
• The network may have vulnerabilities since it often runs unaudited or unrefined code.
• It can be riskier for projects that need high security or reliability.
• Kusama’s fast pace and changes might be confusing for new users or developers.
• Some users may find the network’s experimental nature less predictable compared to more established blockchains.

Founders

Kusama was founded by Gavin Wood, Peter Czaban, and Robert Habermeier. Gavin Wood is also a co-founder of Ethereum and the creator of the Solidity programming language.

Background

The founders are the same team behind Polkadot, and Kusama serves as an experimental network for testing new blockchain projects before they launch on Polkadot.

Key Investors

Kusama's main investors include the Web3 Foundation, which controls about 30% of the tokens. Many individual and institutional investors also participate by buying and staking Kusama tokens (KSM) on various crypto exchanges.

Exchanges and Platforms

Kusama tokens are available on popular exchanges like Binance, Coinbase, Kraken, and Uphold, where a wide range of investors trade and hold KSM.

Community and Developers

Developers and blockchain projects experimenting with Kusama also act as investors by staking tokens to participate in governance and network security.

Summary

• Web3 Foundation holds a significant portion of Kusama tokens.
• Individual and institutional investors buy and stake KSM on major exchanges.
• Developers and projects contribute by actively using and supporting the network.

Halal Status of Kusama

• Yes, Kusama is considered halal by some Islamic finance scholars and organizations like Islamic Finance Guru and Crypto Halal Office.
• This is because Kusama passes certain Shariah compliance screenings, meaning it does not involve interest (riba), gambling, or other forbidden activities according to their analysis.
• However, opinions can vary, and some sources mention concerns about volatility or use cases, so it depends on the specific interpretation of Islamic law.

For most clear guidance, it’s best to refer to trusted Shariah advisory boards or Islamic finance experts.