What Is Kadena? | KDA Review
Jun 03, 20226 min read
To date, it has become quite evident that for blockchain technology to gain mass adoption, it is necessary to create a project that will be distinguished by its security, speed, and ease of use. Hundreds of brilliant minds are working on solving this difficult task and launching their crypto projects. However, a project that would meet all the listed criteria has not yet been seen. Therefore, the developers of Kadena intended to fix the situation and demonstrate a project that could turn the cryptocurrency industry around.
What Is Kadena?
Kadena is a hybrid blockchain that allows developers to build ultra-fast and cost-effective decentralized applications. The project developers are striving for mass adoption of blockchain technology and identify three problems on the way to its formation: low scalability, poor security, and complex use. It is these obstacles that Kadena solves. The Kadena blockchain consists of three key components:
- Chainweb is a public blockchain protocol that provides a high level of scalability and security.
- Kuro is a high-speed and secure private blockchain.
- Pact is a safe and easy-to-use smart contract language.
Together, these elements can make Kadena the fastest, safest, and most scalable blockchain on the market. To date, the Kadena public blockchain consists of 20 chains that operate in parallel and can process an incredible 480000 TPS per second.
Who Are the Founders of Kadena?
The development of Kadena began in 2016. The founders of the project were two highly qualified experts:
- Stuart Popejoy. A former employee of the blockchain division of JPMorgan Blockchain Center for Excellence.
- Will Martino. Will was the lead engineer of Juno, JP Morgan’s first blockchain, and was previously the technical head of the SEC’s Cryptocurrency Steering Committee.
Will and Stuart were crucial figures in developing JP Morgan’s blockchain — JPCoin. In 2016, they decided to build the Kadena blockchain to make it the best blockchain for enterprise use. Kadena’s mainnet was launched in 2019.
In 2020, Kadena’s multi-blockchain expanded from 10 to 20 chains and increased throughput to 480,000 TPS. The developers are already working on expanding Kadena to 50 chains, which will increase the throughput to about a million transactions per second.
How Does Kadena Work?
The Kadena architecture consists of two blockchains — the public Layer 1 Chainweb multi-chain and the private Layer 2 Curo blockchain. These blockchains are interoperable through the use of the smart contract language Pact. This solution allowed the developers to neutralize the scalability problems faced by PoW blockchains while maintaining the high level of security inherent in this consensus algorithm. In addition, thanks to the multi-chain architecture, the Kadena blockchain can accommodate many chains, increasing its throughput while not increasing power consumption. The project team strives to create an easy-to-use and scalable blockchain platform with a first-class security level.
Chainweb is a modernized PoW consensus algorithm. This consensus algorithm braids together Bitcoin-like chains and allows parallel processing of transactions. Thanks to its architecture, Chainweb provides high throughput at the basic level. Thus, developers eliminate the need to use second-layer solutions, such as Lightning Network, making developing decentralized applications more convenient and cost-effective.
Curo is a private Layer 2 blockchain that was developed for enterprise use. Curo’s private blockchain allows businesses to take full advantage of blockchain technology while keeping sensitive data inaccessible to the public. To date, the Curo can support more than 8,000 transactions per second while remaining secure and cost-effective. However, this is not the only advantage of Curo. The developers were the first to introduce the concept of “gas stations.” Thanks to this feature, developers and corporate clients can pay transaction fees for their users. It is assumed that in the case of the development and launch of dApps and blockchain games, this will eliminate a barrier to mass use.
Pact is a specially designed smart contract language characterized by ease of use and security. Pact is used to ensure the interoperability of public and private blockchains. The Kadena team claims that Pact is one of the simplest programming languages. Any advanced Excel user will be able to write their smart contract on it and run it in the blockchain. Pact has a simple integration with existing corporate databases using its own API.
The KDA token is the fuel of the Kadena ecosystem. The token is used to pay fees and reward miners. The maximum supply of tokens will be 1 billion. The circulating supply is 184 million KDA.
KDA is mined by miners who receive a portion of tokens as a reward. Therefore, the maximum supply will be reached in over 120 years. At the moment, about 1.94 million tokens are mined per month. However, the number of issued KDA per month will be reduced by halving over time. This strategy allows KDA to remain a deflationary asset, despite the seemingly sizeable maximum supply.
The project team also released a wrapped token on Ethereum — wKDA. wKDA can be used in DeFi protocols and Ethereum-compatible blockchains: that is, operations with KDA can now be carried out in all these networks. In addition, wKDA helps reduce the circulating supply of KDA, thereby motivating the price to grow.
Moreover, the crypto exchange CoinMetro has opened a KDA staking pool with an 18% APY. This solution also reduces the supply of coins and creates an artificial shortage of tokens.
Since 2019, the project has cooperated with the provider of commodities and alternative investment products, USCF. The company develops financial products on the Kadena private network and uses Chainweb smart contracts so that customers can access them through the Kadena public network. Kadena also works with the startup Rymedi, which develops blockchain applications for the healthcare sector, including the US Food and Drug Administration (FDA). At the same time, Kadena cooperates with many leading blockchain projects. For example, the Chainlink network of decentralized oracles is integrated into the Kadena network. The company also collaborates with Celo, Cosmos, Ledger, Polkadot, Terra, CoinMetro, Flux, Wrapped, and ZelCore.
The Kadena team launched the decentralized exchange Kadenaswap, an automated market maker (AMM). Kadenaswap supports protocols such as Bitcoin, Ethereum, Cosmos, Polkadot, Terra, Celo, and Chainlink.
Where to Buy $KDA?
When swapping and buying $KDA, it's better to use reputable and secure exchanges. SimpleSwap is a perfect place to start your crypto operations with $KDA, because it's simple to navigate, easy to process, and has a wide range of 500+ assets to choose from!
Kadena is a promising blockchain that has already received support from large companies and investors. Kadena developers have done the impossible — they scale the PoW blockchain without sacrificing security and decentralization. To date, Kadena is the fastest blockchain on the market. With the entry into the DeFi and NFT markets, the scope of its application becomes much broader. In addition, Kadena has a revolutionary feature — gas stations — with which companies can pay fees instead of their customers. A strong team, revolutionary technologies, and incredible bandwidth make Kadena one of the potential leaders of the crypto market.
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