Kusama is the first blockchain in the Polkadot network, a kind of "testing ground". Kusama received some functions even earlier than Polkadot (participation in the auction of slots, composite applications), and also this blockchain has a higher speed of operation. It is an environment for developers where they can test and debug projects before implementing them in Polkadot. However, some projects prefer to stay on Kusama, considering this blockchain quite suitable for themselves. KSM is a native Kusama token designed for staking and participating in auctions when renting slots where parachains are placed. It is possible to pay for the rental of the slot by users on the principle of crowdfunding (this option is called crowdloan). You can buy a KSM token on the Binance exchange in the KSM/USDT pair and with other currencies, as well as on the Bybit, OKX, Huobi, MEXC, Phemex, KuCoin, Bitget platforms. Technical features Kusama is called the "canary" chain of Polkadot – by analogy with how canaries were brought to the mines in cages earlier, and if the canary died, then this indicated methane or carbon monoxide in the air, and people had to leave urgently. On Kusama, developers can create and deploy parachains, try out various management functions, validation and other aspects in a real workable environment. The chain runs on the same code base as Polkadot, so from the point of view of developers, the process of creating applications and smart contracts is no different. At the same time, projects on Kusama are developing faster, are cheaper, and if desired, they can be transferred to Polkadot at any time. Standard user groups participate in maintaining the Kusama network:
Nominators (choose validators).
Validators (confirm transactions and generate blocks). Collators (responsible for creating blocks on the blockchain containing the latest transactions).
Management entities (by voting determine how the platform will continue to develop). The main component of the management is a referendum, in which proposals are made and a vote is held on whether to implement a particular change in the protocol. An unlimited number of changes can be carried out through a referendum, for example, adjusting network parameters, registering or excluding a blockchain, voting on the distribution of funds from the general treasury, etc. How auctions work in the Kusama network To launch your project on Kusama, you need to rent a slot on the blockchain. The right to rent is achieved by participating in an auction. The process of launching the blockchain looks like this:
Development of a parachain and its placement on the initial layer.
Local testing and optimization.
Selection of the auction strategy.
Joining the auction, making bids.
After the start of the allotted lease period – deployment of the blockchain on the purchased slot. When the lease period has come to an end, it is necessary to participate in a new auction to extend the right to support the blockchain on Kusama. During the auction, the team bids by choosing at least one six-week rental period, as well as the amount in KSM tokens that they are willing to block for the duration of the selected period. Other teams see the bids and can raise them throughout the trading time. The winner at the close of the auction automatically receives the right to rent. The amount claimed by him in KSM is blocked for the rental period, then returned. What are crowdloans? The built-in Kusama crowdloan mechanism allows third-party users to contribute to KSM by blocking it for the lease term. In return, teams can reward users at their discretion and organize crowdloan in various ways (either on Kusama or on some third-party site).
Approximate order of crowdloan:
Creating a campaign – setting the number of allowed contributions, the start and end date. The project also needs to notify its community about the campaign so that those who wish to participate. Initiation of a special smart contract where participants will send KSM. Depositing funds during the campaign period, taking into account the set maximum. If the team wins the auction, the KSM remains locked for the entire lease term, and the chain is automatically started. If the team does not win, all deposited KSM will be unlocked immediately after the end of the campaign. You need to pay attention to crowdloan campaigns that you may encounter online. These may be the tricks of scammers. In particular, it is impossible to transfer KSM to any address, since crowdloan is arranged differently, here deposits are made using a special transaction in Kusama. Scammers can impersonate official representatives of the project. If in doubt, contact the real representatives at the contacts listed on the official website of the project you are interested in. The Kusama Token (KSM) KSM plays many important roles in the Kusama ecosystem:
Used by nominators who delegate their KSM to validators, thereby performing a passive investment function.
Allows validators to run a node and earn approximately 7.5% per annum (the amount is dynamic).
Serves as a reward for people who find bugs and bugs in the code.
Serves as a reward for projects that can add value to the entire network as a whole.
Allows you to participate in decision-making on the development of the protocol. In addition, KSM allows you to add accounts to ENS (Ethereum Name Service), a system of smart contracts on the Ethereum blockchain that allows users to declare their own domain names. Where to buy and store Kusama (KSM) Coin is present on the main popular crypto exchanges: Binance Huobi OKEx Kraken Gate.io KuCoin et al. Wallets that are suitable for storing Kusama: MathWallet Trust Wallet ImToken Lunie (allows you to do staking) Ledger Polkadot browser Extension {.js} Parity Signer (instruction). Conclusion Kusama (KSM) is a project potentially useful for all developers who want to join the Polkadot blockchain. This is an effective testing ground, in order to participate in which you need to win an auction, and you can involve a community of users in the process. Decentralized management, opportunities for staking and asset delegation, rapid development and innovation are the reasons why many developers prefer not to switch to Polkadot, but to stay on Kusama. Both protocols have a strong potential for growth and development today.