Beginner’s Guide to Kowala

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Kowala delivers a stable cryptocurrency that eliminates the volatility and unpredictability associated with traditional cryptocurrencies. The token, kUSD, is the very first autonomously stabilized cryptocurrency in the world, and it also happens to use an efficient and fast blockchain. kUSD relies on the Kowala protocol to use advanced stability algorithms, which ensure that it is always pegged to the USD value by creating and destroying coins as necessary to maintain the same dollar value.

Kowala Website

With a stable, autonomous, and decentralized cryptocurrency like kUSD, you can conduct normal everyday transactions using crypto, without worrying about its volatility.

How Does kUSD Remain Pegged to the USD?

One of the key components of kUSD is its ability to remain pegged with the United States dollar. This is possible because the kUSD blockchain adds or eliminates currency based on the demand. This happens automatically and transparently to confirm the stability and value of the currency, as well as its security.

Stable Coin

The k Protocol actually uses three separate mechanisms to keep the value regulated. Mechanism 1 is the process described above, which pushes the market price toward $1, the target. If the price dips below $1 and Mechanism 1 doesn’t do enough to get it back up, all transactions will have a variable fee applied until the market price starts rising. Thanks to a self-regulating mechanism, transactions are done against a “burn wallet” to bring the coin back to $1. Finally, Mechanism 3 involves assistance from traders who will engage in activities that help the kUSD’s value get back to $1.

What Else Should You Know about kUSD?

kUSD or kCoins are the stable stores of value, and there might be other kCoins in the future after kUSD has grown and people recognize its value. Keep in mind that because kUSD is linked to the United States dollar, its outlook does not depend on the company behind it which is typically the case with cryptocurrency. This is very unusual in the world of cryptocurrency and something that can appeal to investors in search of stability even if they are unsure of the project. Although the common Tether is useful, the team at Kowala feels that alternatives can be useful. The team feels that it is impossible to stake and centralize the market with just one stable coin; instead, more than one will be required.

How Is Kowala’s Mining Different?

Instead of having miners compete against each other like in traditional cryptocurrency, miners of kUSD cooperate and advance the blockchain together. Kowala uses the Yap Consensus, which got its inspiration from the Yapese people and their use of immovable Rai stones for currency. Thanks to cooperative mining, the kUSD blockchain can finalize blocks robustly, quickly, and efficiently, minimizing energy waste.

Mining works on a mechanism of proof of control. To mine, you must hold mUSD, a factor that is crucial to the low energy consumption, minimal hardware requirements, and fast transactions. Holders of mUSD run and own the network. In return, they get block rewards. You need to hold a given quantity of these mUSD to get exclusive mining rights within a sector. With the kUSD application, you can authorize other miners on your behalf. More importantly, miners don’t need fancy machinery; a cheap cloud server or a laptop will do. Because mining is so low cost, miners will be motivated even if the block rewards temporarily reach $0. Additionally, the consensus mechanisms of kUSD should deliver more consistent rewards than those mechanisms used by other major cryptocurrencies.

Kowala Mining

What Should You Know about the Kowala Wallet?

The team behind Kowala understands that a professional-grade wallet app is necessary for people to adopt cryptocurrency. The Kowala app offers a world-class user experience and the ability to support P2P trading immediately, plus push notifications. With the application, anyone can use crypto without security worries, regardless of their technical knowledge.

How Does Kowala Make Sense for the Average Person?

The average person looking to invest in cryptocurrency will be most attracted to the lack of volatility in kUSD’s value. You can avoid this volatility while making purchases in real life and also avoid the volatility associated with less-stable fiat currencies, like those from Venezuela or Zimbabwe. kUSD also delivers a stable store of value for those who hold the tokens, and for consumers without access to bank accounts in a stable fiat currency, it offers the ability to get third-party bank-like services.

How Does It Help Merchants?

Merchants will also see their own set of benefits, many of which overlap with those the average person experiences. They don’t have to worry about the volatility of cryptocurrency when selling their services or products and get access to bank-like services where they otherwise would not be possible.

How Do Investors and Traders Benefit?

Investors will appreciate the ability to invest in an asset that is both decentralized and stable, a rarity. Meanwhile, traders will be able to use the coin to pursue arbitrage opportunities in the new crypto markets, the ability to trade in or out of stable assets quickly and at a low cost, and the option of parking funds within a decentralized asset that also has a stable value.

Who Else Does Kowala Benefit?

Miners will appreciate the ability to mine without having to invest great amounts of money in electricity consumption or hardware. They will also like the fact that they consistently get rewards regardless of whether their machine solves the block due to the cooperative nature and like that they can lease or sell their acquired mining rights.

Developers will be able to use Kowala to incorporate payments into their websites and apps without having to make a merchant account. They can also do this without worrying about cryptocurrency volatility.


Kowala and kUSD seem to be very welcome additions to the world of cryptocurrency. They can provide the advantages of cryptocurrency, such as quick transactions, decentralization, and low fees, with the stability of fiat currencies. With three mechanisms working to peg kUSD to the USD, the goal of stability should be reasonable to achieve. This means that kUSD should successfully deliver all the advantages of cryptocurrency along with the stability of fiat currencies.

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Editor-in-Chief of Blockonomi and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact

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