Kusama, a canary network based on Polkadot, has officially launched the BEEFY consensus protocol, which allows its crypto ecosystem to easily integrate with the rest of the blockchain world like Ethereum, including non-EVM networks.
This is a big step forward for Kusama, which will be able to try to bridge the interoperability gap with other cryptographic networks.
The crypto KSM, despite the news, still lags far behind the performance recorded by other tokens in the market.
All the details below.
Summary
Kusama announces the integration of the Beefy protocol that enhances interoperability with Ethereum
Kusama, blockchain canary of Polkadot conceived through Substrate, has just officially announced the activation of a new consensus protocol called BEEFY, which allows efficient interoperable communication between the network, the cryptographic network of Ethereum, and other non-EVM infrastructure.
In detail, BEEFY allows you to check the status of Kusama on all the parachains of the Polkadot crypto ecosystem, and more broadly on most of the world’s most used blockchains.
Innovation focuses on two bridges: Snowbridge and Hyperbridge, which provide alternative data transmission channels, respectively between Kusama and Ethereum in the first case, and between the layer-2 of the smart contract platform and the new emerging chains in the second.
By doing so, you achieve a highly interconnected blockchain space, easy to use and cost-effective for the end user.
BEEFY represents a turning point for Kusama, often marginalized due to its native incompatibility with Ethereum and the inability of Polkadot-based networks to emerge in a highly competitive cryptographic context.
Regarding the news, Seun Lanlege, founder of the blockchain research and development laboratory Polytope Labs, stated verbatim that:
“The BEEFY update greatly enhances the value of interaction with Kusama and the Polkadot ecosystem. More than ever, web3 users desire interoperable solutions and the ability to move from one ecosystem to another without encountering friction. I expect this update to meet their expectations.”
The update in question refers to the expanded vision of Polkadot, which in its original 2016 whitepaper mentioned the creation of a highly interoperable multi-chain framework, capable of easily communicating with the rest of the world.
The entire crypto market of blockchain networks seems to be heading towards a future where everything will be accessible through a single central point, in a scenario of extreme simplification for the end user’s operations.
The current fragmentation of cryptographic products makes it complex to take advantage of all the participatory possibilities offered by the on-chain world, with a multitude of different programming languages, wallets with different features and non-linear connections.
Cryptos and blockchain technologies in this sense will only become mainstream when everything is interoperable and easily accessible from any starting point, with web interfaces much simpler and more intuitive than those currently available.
Kusama seems to be on the right track.
The crypto Kusama (KSM) struggles to keep up with the rest of the market
Despite the excellent progress on the technological front for the Kusama network and the reduction of the gap with the Ethereum blockchain, the crypto KSM still struggles to keep up with the growth of the crypto markets.
Although in the last month KSM has increased its market capitalization by 25%, going from around 35 dollars to the current 48 dollars, it is still far behind many of the layer-1/layer-2 tokens.
While this last category of coins usually ranks in the top 100 of the most capitalized cryptos according to the ranking of CoinMarketCap, Kusama is positioned at rank #156 with a counter value of 374 million dollars.
The weekly chart KSM-USDT perfectly conveys how the currency has been extremely suppressed by a price action that has favored bears from November 2021 until recently.
Only in the recent period, from the end of October 2023 onwards, we have seen some intensity from the demand, which has returned to make itself felt by pushing prices up from the minimum of 16.5 dollars.
Currently the drawdown from the all-time highs for KSM is 92%: the road to returning to the bull market is still very long for this coin.
From a purely speculative point of view, KSM offers the possibility of a short-term rise, with prices that have remained solid above the EMA 50 daily since October, with the usual breakdown attempt promptly absorbed.
Probably the crypto will soon be able to return above the local maximum situation around 65 dollars, which currently acts as the main graphical resistance.
In a clearly bullish context for the entire cryptographic sector, driven by the recent rally of Bitcoin and the enthusiasm of investors for the scalable future of Ethereum, it is clear that even coins like Kusama will be able to find the opportunity to offer a profit to its stakeholders.
Nevertheless, the overall picture for KSM does not change, as it represents a token that is highly underperforming compared to the BTC and ETH benchmarks.
