Kadena has been getting some attention in the crypto sphere. Co-existing among established Blockchain networks like Ethereum, Bsc, Polygon and Solana, It is showing some good quality which can enable it stay relevant among its peers. Let’s look at what Kadena is and what it has to offer.
What is Kadena?
Kadena is a layer-1 proof-of-work blockchain that combines a Layer 1 public chain protocol (Chain Web) and a Layer 2 network (Kuro) to deliver high bandwidth, which, in turn, ensures security and unlimited scalability.
The layer-2 block chain, known as Kuro, enables permissioned (private) transactions. Note that Layer 1 and Layer 2 are both created with the native smart contract programming language, “Pact,” which is said to be more user-friendly than other coding languages.
Kadena aims to create a highly scalable, developer-friendly blockchain that provides the same degree of security as Proof of Work blockchains such as Bitcoin. Kadena was created to offer engaging and functional solutions to both retail and regular users, as well as enterprises and business users.
What makes Kadena stand out?
Stuart Popejoy and Will Martino, both former JPMorgan (NYSE:JPM) executives, founded Kadena two years ago. They were both previously in charge of JPMorgan’s Blockchain Center for Excellence. When reviewing all of the components of Kadena’s architecture, the team’s excellence is on display:
Pact: This is a native open-source smart contract programming language developed by the Kadena team and implemented in Haskell. It is the first Turing-incomplete human-readable smart contract language. Pact was created to address certain important issues that exist in today’s common smart contract programming languages, such as Ethereum’s solidity. It enables anybody to write on a blockchain in an easy and secure manner.
Chainweb: This is a layer-1 public blockchain that offers unlimited scalability in a PoW consensus process by leveraging a unique “braiding” approach across many parallel “peer” chains. Clearly stated, Chainweb is a linked bundle of numerous parallel chains known as “peer chains” that all function together for a single network at the same time.
As every cryptocurrency seems to be migrating to proof of stake in order to process transactions easily on their blockchains, Kadena, on the other hand, still runs on a proof of work block chain, which it claims is the most secure means of safeguarding its network. However, this approach comes with scalability difficulties. However, using Chainweb, Kadena has been able to address this particular difficulty by incorporating a crucial characteristic into its architecture: sharding.
The term “sharding” refers to the process of dividing a single blockchain into numerous distinct chains, allowing them to be processed faster and cheaper. This is something that Ethereum is trying to achieve with its upgrade to Ethereum 2.0. Sharding aids in the scalability of the blockchain as each shard is only concerned with a small fraction of the transactions in the whole blockchain.
Kuro: This is a layer-2 open-source private blockchain designed exclusively for eBusinesses. Before introducing its public smart contract platform, Kadena also created a private blockchain. The Kadena Kuro (formerly ScalableBFT) private blockchain is an open-source layer-2 blockchain that employs a Byzantine Fault Tolerant (BFT) consensus method and is designed for enterprise-grade use cases. Kuro is written in the Pact programming language and is intended to help businesses with their blockchain needs.
Kadena’s KDA Token and its Price History
KDA is Kadena’s native cryptocurrency, and it is used to pay for computing power on the Kadena blockchain in the same way that BTC is used on the Bitcoin blockchain. A majority of KDA is also rewarded to miners for successfully facilitating transactions on its blockchain, similar to Bitcoin’s block reward of BTC.
Mining payouts will also be halved every year, with the number of tokens paid to miners every block being cut in half. This mechanism is modeled after Bitcoin, which has a halving event every four years and is intended to make the token deflationary in the long run.
Kadena’s native token, $KDA, has gone parabolic in recent months, rising from a $100 million market value to a $3 billion market cap in less than 60 days. It increased by 1400 percent from October to November and reached an all time high of $28.25 due to positive news and several exchange listings before decreasing sharply.
With the current price of KDA at $5.55, that is over 1500 percent increase since its launch. It reached an all-time low of $0.1213 in January 2021 and an all-time high of $28.25 in November 2021, according to CoinMarketCap.
Kaddex is a multi-protocol decentralized AMM DEX with native decentralized bridges that is administered by a DAO on the Kadena blockchain. Because of Kadena’s “gas stations,” they can offer zero-fee transactions. Kaddex’s token, KDX, serves as both a governance token for the DAO and a utility token for the DEX. Kaddex offers significant LP benefits that will entice new DeFi users to join the network. When a swap is executed, the user is charged a standard 0.3 percent trading fee, with 100% of the fee going to liquidity providers.
Partnerships and future plans
Kadena successfully connected to the Ethereum mainnet, enabling $KDA to be wrapped as an ERC-20 token. Kadena connected not only to Ethereum, but also to other Layer 1s such as Celo, Terra, and Polkadot.This will certainly unlock liquidity that may be utilised in the Kadena ecosystem.
Kadena has also been quickly growing to address the most recent developments. This includes DeFi, Kadena as a DAO, which will expand the usage of its token in governance, and NFTs. Play-to-Earn games, the newest fad in the crypto sector, are already making their way onto the network.
In addition, the Kadena network has “gas stations,” where transaction costs can be paid from a community pool. The elimination of the need to transact in the native token warrants flexibility and the integration of new parties into the network.
Kadena’s architecture is stunning, and investors appear to be catching on to the platform’s mission. Kadena’s “gas station” functionality allows retail investors to connect with apps created on its blockchain without the requirement for any native utility tokens for gas. Kadena’s unique Chainweb technology promises to grow more than any other blockchain currently on the market while maintaining the foundations of decentralization and security. Thus, with sustained real-world application and market potential, Kadena appears to be closer than any other project in the industry to bringing blockchain to mass adoption.