The Kaspa ecosystem is a rapidly growing blockchain network known for its high throughput and low transaction fees. It aims to provide a scalable and secure platform for decentralized applications (dApps) and digital assets. Within this ecosystem, KRC-20 tokens play a crucial role.

The KRC-20 token standard is a standard for creating and managing tokens on the Kaspa blockchain, similar to the ERC-20 standard on Ethereum. The significance of KRC-20 tokens in the Kaspa ecosystem cannot be overstated. They facilitate seamless transactions and interactions within the network, promoting interoperability and enhancing the overall functionality of the Kaspa blockchain. By standardizing token creation and management, KRC-20 tokens help drive innovation and adoption, making the Kaspa ecosystem more robust and versatile.

What are KRC-20 Tokens?

Source: krc-20.org

KRC-20 tokens are digital assets created and managed on the Kaspa blockchain. They adhere to specific rules and standards that ensure compatibility and interoperability within the Kaspa ecosystem. These tokens can represent a wide range of assets, including digital currencies, utility tokens for decentralized applications (dApps), and other forms of digital value.

KRC-20 tokens are designed to be flexible and versatile, enabling them to be used in various scenarios. Their standardized nature also ensures that they can be easily traded and transferred within the Kaspa ecosystem, promoting liquidity and ease of use.

Comparison with Other Token Standards

• ERC-20 Tokens: The ERC-20 standard is widely used on the Ethereum blockchain. It defines a common set of rules for tokens, making it easier for developers to create and manage tokens. ERC-20 tokens are known for their versatility and are used in various applications, from ICOs to DeFi projects.
• BRC-20 Tokens: BRC-20 tokens are used on the Bitcoin blockchain. They are less common than ERC-20 tokens and are typically used for specific applications that require the security and stability of the Bitcoin network. BRC-20 tokens are often seen in projects that prioritize security over flexibility.
• KRC-20 tokens combine the best of both worlds by offering the flexibility and ease of use seen in ERC-20 tokens while leveraging the security and scalability of the Kaspa blockchain. This makes KRC-20 tokens a powerful tool for developers looking to build innovative solutions within the Kaspa ecosystem.

Key Features of KRC-20 Tokens

Interoperability

KRC-20 tokens are designed to be highly interoperable within the Kaspa ecosystem. They can seamlessly interact with various dApps, wallets, and other blockchain-based services. Interoperability ensures that KRC-20 tokens can be easily transferred and used across different platforms, promoting a more connected and efficient ecosystem.

Scalability

One of the standout features of KRC-20 tokens is their scalability. The Kaspa blockchain is built to handle a high volume of transactions with low latency, making it ideal for applications that require fast and efficient processing. KRC-20 tokens benefit from this scalability, allowing smooth and rapid transactions even as the network grows.

Security and Integrity

Security is a top priority for KRC-20 tokens. The Kaspa blockchain employs advanced cryptographic techniques to ensure the integrity and security of transactions. This robust security framework protects KRC-20 tokens from fraud and unauthorized access, providing users with confidence in the safety of their assets.

Customizability and Flexibility

KRC-20 tokens offer a high degree of customizability and flexibility. Developers can tailor these tokens to meet specific needs, whether for a unique dApp, a new digital currency, or a specialized reward system. This flexibility allows for a wide range of applications and use cases, making KRC-20 tokens a versatile tool in the blockchain space.

Community Collaboration

A vibrant and collaborative community drives the development and growth of KRC-20 tokens. This community actively contributes to improving and adopting the KRC-20 standard, ensuring that it evolves to meet the needs of users and developers. Community collaboration fosters innovation and helps maintain the relevance and utility of KRC-20 tokens within the Kaspa ecosystem.

Use Cases of KRC-20 Tokens

Decentralized Finance (DeFi)

KRC-20 tokens play a significant role in the decentralized finance (DeFi) sector. They can be used in various DeFi applications such as lending, borrowing, and yield farming. By leveraging KRC-20 tokens, users can participate in financial activities without relying on traditional banks, promoting financial inclusion and innovation.

Tokenization

Tokenization involves converting real-world assets into digital tokens on the blockchain. KRC-20 tokens can represent ownership of assets like real estate, art, or commodities. This process makes trading and managing these assets easier, providing greater liquidity and accessibility.

Non-Fungible Tokens (NFTs)

While KRC-20 tokens are fungible, they can be used with non-fungible tokens (NFTs) to create unique digital assets. For example, KRC-20 tokens can facilitate transactions and interactions within NFT marketplaces, enhancing the functionality and utility of NFTs.

Supply Chain Management

KRC-20 tokens can improve supply chain management by providing a transparent and immutable record of transactions. They can be used to track the movement of goods, verify authenticity, and ensure compliance with regulations, enhancing efficiency and trust in supply chain operations.

Governance and Voting

KRC-20 tokens can be used for governance and voting within decentralized organizations. Token holders can vote on proposals and decisions, ensuring that the community has a say in project development and management. This promotes a more democratic and transparent decision-making process.

How do KRC-20 Tokens Work?

Basic Operations

Basic operations provide three functions: deploy, mint, and transfer. The KRC-20 balance state can be determined by aggregating the activities of all these functions.

Deploy

This function is used to create a new KRC-20 token

Parameters:

{"p": "krc-20","op": "deploy","tick": "kasp","max": "21000000","lim":"1000","to":"kaspa:..."}

Condition:

• If “pre > max”, only “max” amount of tokens will be allocated to the “to” address.
• To deploy a KRC-20 token, the transaction fee (or gas fee) paid should be at least 1000 KAS. If the “to” field is not configured, it defaults to the transaction sender address.

Mint

This function is used to get a certain amount of KRC-20 tokens

Parameters:

{"p": "krc-20","op": "mint","tick": "kasp","to":"kaspa:..."}

Condition:

• The inscription data must be in the first element of the transaction’s inputs.
• To mint a KRC-20 token, the transaction fee (or gas fee) paid should not be less than 1 KAS. The balance obtained from each mint is defined in deployment. If an operation causes the cap to be exceeded, the maximum possible number of KRC-20 tokens will be obtained. If the “to” field is not configured, it defaults to the transaction sender address.

Transfer

This function is used to send a certain amount of KRC-20 tokens to another address using the “transfer” function.

Parameters:

{"p": "krc-20","op": "transfer","tick": "kasp","amt": "100","to":"kaspa:..."}

Condition:

• The inscription data must be in the first element of the transaction’s inputs. inputs[0] is considered the sender address. No additional transaction fees are required.

Description of Parameters

• “p”: Protocol Header. It must be “krc-20” and is required for the function to work.
• “op”: Operation header. It specifies the type of operation event (Deploy, Mint, or Transfer) and is required for basic operation functions to work.
• “tick”: It specifies the ticker of the KRC-20 token. It can contain 4 to 6 letters and is required for the function to work.
• “max”: It specifies the maximum supply of the KRC-20 token. It can include decimals and is required for the “deploy” function to work.
• “lim”: It specifies the balance obtained for each mint. It is required for the “mint” function to work and can include decimals.
• “to”: It is used to specify the deployer address of the KRC-20 token and the receiver address of the pre-allocated token (if “pre” is provided).
• “dec”: It specifies the token decimal, default value is 8.
• “pre”: It specifies the amount of tokens allocated to a particular address after deployment.
• “amt”: It specifies the amount of the KRC-20 token to transfer. It can include decimals and is required for the “transfer” function to work.

Deployment Mode

KRC-20 supports two deployment modes to facilitate different usage scenarios.

• Fair Mint: In this model, all circulating tokens are minted via the mint operation, with no reserved tokens. Any mint operation that does not exceed the supply limit is considered valid. This method often involves distributing tokens through mechanisms like airdrops or public sales, where all participants have an equal opportunity to acquire tokens.
• Pre-Allocation: The deployer can allocate a certain amount of KRC-20 tokens to specific addresses during deployment. This can be implemented at deployment time by setting the “pre” parameter to the amount of pre-minted tokens and the “to” parameter to the recipient’s address. It includes allocations to project developers, early investors, or strategic partners. Pre-allocation helps secure funding and support for the project but must be managed carefully to maintain trust and transparency.

How to Mint KRC-20 Tokens

If you want to mint KRC-20 tokens, using a Telegram bot is the easiest way, and you can use the KSPR Bot. Here is a step-by-step guide to doing that;

• Connect to the KSPR Bot on Telegram, click “Start,” and select a bot from the list to start the minting process.

• Tap “Generate Wallet” to create a wallet. After you have created a wallet, you will see your generated wallet and the associated private key. Make sure to store your private key securely!
• Fund Your Wallet: You must fund your wallet with Kaspa coins. You can buy Kaspa tokens ($KAS) on Gate.io and then transfer them to the generated Telegram wallet.
• Start the Minting Process: Enter the command /mint followed by the KRC-20 token you wish to mint. Enter the quantity you want to mint.

• Once done, you will receive a message about the current minting fees for the respective priority. The more fees you are willing to pay, the faster the minting process will be. You can choose between “low,” “medium,” and “high,” or enter a custom fee.

• Confirm Minting: After selecting the fee, you will receive an overview of the minting process: the token you want, the number of mints, the total number of tokens you will receive, and the associated fees (the cost of minting, bot fees, and miner fees). Tap “Confirm” to start the minting process.

• Complete Minting: Once you click “Confirm,” the minting process will begin. The duration of this process depends on the number of mints you selected and the corresponding fees. Once the process is complete, you have successfully minted KRC-20 tokens.

How to Trade KRC-20 Tokens

How to Buy KRC-20 Tokens

• Connect to the KSPR Bot on Telegram and click “Start” to interact with the bot.

• Generate or Import a Wallet: If you haven’t already, generate a new wallet using the bot or import an existing one. Ensure your wallet is funded with Kaspa coins ($KAS) to cover transaction fees.
• Access the Marketplace: Access the trading function using the command /marketplace.

• Choose the Wanted Token: Select the KRC-20 token you want to buy and select the best offer from the list.

• Confirm and Execute the Trade: Confirm the trade to execute the transaction. The bot will process the trade, and the new tokens will be credited to your wallet once the transaction is complete.

How to Sell KRC-20 Tokens

• Connect to the KSPR Bot on Telegram and click on “Start” to begin interacting with the bot
• Access the My listing function: Use the command /mylistings to access the token listing function

• Create new listing: Use the Command ‘/create’ to access the listing creation function, then input the KRC-20 token you would like to sell

• Enter the quantity you want to sell and how many $KAS you want to sell it for

• Click “Confirm” to execute the transaction.

Leading KRC-20 Projects

Nacho the Kat

Nacho the Kat is the first Fair Launch Memecoin on Kaspa’s KRC-20 protocol, with zero pre-allocation or pre-sales. Inspired by Kaspa Co-Founder Shai Wyborski’s pet cat Ignacio ‘Nacho’, this project has built a strong community of over 11,000 members. The Nacho the Kat community is dedicated to promoting decentralization, redundancy, and transparency across the ecosystem. Nacho is more than just a memecoin; it is a testament to what is possible on the Kaspa network.

Kasplex

Kasplex is a comprehensive solution that includes a data insertion protocol, an open-source indexer, data availability mechanisms, and robust APIs. It leverages Kaspa’s high block rate, scalability, and decentralized Proof-of-Work (PoW) Layer-1 to facilitate efficient data insertion, address the UTXO bloat issue, and support a sustainable ecosystem. The Kasplex Protocol also sets standards for creating KRC-20 tokens and NFTs on the Kaspa network, fostering the development of a diverse ecosystem of decentralized applications.

Ghoad

Ghoad is an AI-generated meme coin on the Kaspa network that blends ghost and toad elements. Launched fairly to ensure equal access to tokens for the community and the team, Ghoad utilizes Kaspa’s blockDAG technology, which is named after the GhostDAG protocol. Deployed as the first OG toad on Kaspa on June 30, 2024, Ghoad emphasizes community, creativity, and AI-driven innovation, aiming to redefine possibilities on the Kaspa network.

Tools Built for KRC-20 Tokens

Kas.fyi

Kas.fyi is an all-in-one block explorer for the Kaspa blockchain. It provides users with easy access to transaction information and real-time network data. With Kas.fyi, users can track KRC-20 token transactions, monitor network activity, and gain insights into the Kaspa ecosystem. The platform offers detailed views of blocks, transactions, and addresses, making it an essential tool for anyone involved in the Kaspa network.

KSPR Bot

KSPR Bot is a Telegram bot designed to simplify the process of deploying, minting, and transferring KRC-20 tokens. It is user-friendly and accessible to both beginners and developers, even those with no prior blockchain experience. KSPR Bot supports batch minting of KRC-20 tokens, providing users a significant advantage. It is the only solution that allows users to interact with the Kasplex protocol directly from their mobile phones, eliminating the need for additional software or wallets.

Chainge

Chainge is a leading cross-chain liquidity aggregator and bridge protocol. It focuses on enhancing interoperability and AI trading advancements in the DeFi space. Chainge enables seamless cross-chain transactions and liquidity management, making it a vital tool for users dealing with KRC-20 tokens and other digital assets. By aggregating liquidity from multiple sources, Chainge ensures users get the best rates and efficient trading experiences.

Kasware

Kasware is a non-custodial wallet designed for the Kaspa blockchain. It ensures that users have full control over their funds, with private keys encrypted on their devices and not shared with anyone. Kasware is a hierarchical deterministic wallet, meaning accounts are derived from a Secret Recovery Phrase, providing enhanced security and ease of use. The wallet supports various features to manage KRC-20 tokens efficiently.

Conclusion

KRC-20 tokens are crucial to the Kaspa ecosystem, driving innovation and expanding blockchain possibilities. Their interoperability and scalability make them suitable for various applications, including DeFi, tokenization, gaming, and governance. With robust security and flexibility, KRC-20 tokens meet diverse needs, fostering a dynamic blockchain environment. As Kaspa grows, these tokens will play a key role in promoting a decentralized and inclusive digital future, streamlining development, and enhancing the interconnectedness of the blockchain ecosystem.