What Is Kadena?

What Is Kadena? Kadena was created to fix the fundamental scaling problem with Bitcoin. Kadena is the ONLY Proof-of-Work Protocol that has solved this issue.

Covered:

What Inspired Kadena
What Makes Satoshi Nakamoto’s PoW Consensus “Unscalable”
Limitations
Blockchain, NFTs, and Gaming
Our Final Thoughts (Bullish)

What Is Kadena?

Kadena was created to fix the fundamental scaling problem with Bitcoin, which has been a barrier to mainstream adoption.

“Launching Kadena, and now expanding to over 20 parallel chains, proving that we can scale a layer-1 blockchain to the point where digital assets can go mainstream,” said Kadena Co-Founder and CEO Will Martino. “Growing from 10 to 20 chains means that the infrastructure now exists to service the needs of the digital economy”.

Kadena has solved the previously long-standing problem of how to securely scale a public Proof-of-Work blockchain — we’re the only project that has been able to do it..

How Does It Work?

According to Kadena.io, “Kadena’s blockchain works by taking the foundation of a Bitcoin mining chain and parallelizing this work across multiple chains”. This is Chainweb. Chainweb is a braided, parallelized PoW consensus structure that improves throughput and scalability while maintaining the security and integrity found in Bitcoin.

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Chainweb enables significantly higher amounts of transactions (scalability). It is energy efficient at scale, and virtually no cost to transact. It retains Satoshi Nakamoto’s consensus between miners and transactions and scales it among 20 chains. At 20 chains it can reach an astounding 8,000 transactions per second across 500 nodes. They are also able to add more chains if needed, making it near infinitely scalable.

Satoshi Nakamoto’s Consensus, “Proof-of-Work”

PoW at its core, blockchain’s original design, was to be decentralized. It’s consensus among miners and ones conducting transactions, is the engine of what makes this system work. Investopedia states, “Proof of work is one such method that makes it too resource-intensive to try to overtake the network.

Other proof mechanisms also exist that are less resource-intensive, but which have other drawbacks or flaws, such as proof of stake (PoS) and proof of burn”. For PoS, the more likely an attack can occur rests in how much authority a stake pool, or individual has. More on that later..

[Translation] Without a proof mechanism, the network and the data stored within it would be vulnerable to hacks/attacks. The ledger (blockchain) is public, as hashes, (long strings of numbers) original data created from transaction, become submitted through the blockchain, the network/miners can quickly identify tampering (any change or alteration of the original data). This property is what makes PoW secure. We must look at it’s ability to scale effectively.

Limitations

Kadena can scale to meet the needs of its users, but the scaling isn’t automatic. Initially, the main limitation to scaling is adoption. The public blockchain will hard-fork to higher throughput configurations, but each hard-fork needs to be motivated by alleviating congestion as the upgrade to a larger network requires miners to procure more replicating servers. Despite potential PoS competitors, Kadena (KDA) has seen significant price action.

Source: Ajansev.com

The controversy lies in the sheer amount of energy and resources needed to compute and validate transactions. Energy consumption scales with the project. More success equates to more energy required.

Proof-of-Stake

PoS by contrast is believed to be a better alternative. Crypto miners can validate block transactions based on the number of coins they hold. According to Investopedia, “PoS seeks to solve this problem by effectively substituting computational power for staking, whereby an individual’s mining power is limited to the percentage of ownership staked. The more tokens deposited into the network, the more validating power is effectively granted to it”. Mining is what PoS is primarily aiming to fix. According to Investopedia, “The PoS algorithm seeks to address this issue by attributing mining power to the proportion of coins held by a miner.

[Translation] PoS is an agreement using “validators” instead of miners to verify transaction in the blockchain. Each project’s code will vary, but the consensus depends on electricity to validate, not mine, this is difference.

Tokenomics

Mining Share 700M
Platform Share 200M
Investor, Strategic, and Contributor 90M
- Contributor share (employees, consultants, advisors): 30M
- Series A & B Investor sales: 21.4M
- 2019 Coinlist offering 2.1M
- Strategic share (economic incentive and future sales) 36.5M
Burned at launch: 10M

The Team

Kadena’s advisory team consists of experts such as Dr. Stuart Haber, the co-inventor of blockchain and the most cited author in Satoshi Nakamoto’s renowned 2008 Bitcoin white paper. Kadena is founded by Stuart Popejoy & Will Martino who created JP Morgan’s first blockchain and was the tech lead for the SEC’s first Crypto Committee, respectively. Vivienne Chen communications and media manager wrote many of articles referenced in this paper.

Blockchain, NFTs, and Gaming

Source: Coinmarketcap.com

Pact’s smart contracts are the layer-2 solution for Kadena. It is a robust blockchain that is scaled for efficiency, speed and minimal tax/fee association. It is a very early project but plowing into the top 100 is no easy feat.

Wrapped KDA will becoming to bridge into the ETH network for NFT and METAVERSA capacities. They have begun getting into the crypto gaming space and have deployed UFO Gaming, a gaming-focused cryptocurrency.

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UFO will rival Axie Infinity- an Ethereum based gaming cryptocurrency. Coming in Q4 and Q1 in 2022, numerous partnerships will be developed to bridge and compete with the large caps.

Other items of interest are occurring in Q4 and Q1 of 2022:

Lending Platform Infrastructure
New NFT projects
Test bridge to Celo
Test bridge to Terra
Kadenaswap (upgrades pending) is a DEX compatible with Zelcore/Fluxwallet

Messari.io, Source: Kadena Public Roadmap

Closing Thoughts and Recent Price Action

Kadena’s narrative is going to be known as the layer-one, proof-of-work protocol. Its name has been synonymous with “New Bitcoin” or “Scalable Bitcoin”. You do not hear layer one and PoW generally in the same sentence. Let alone exceling with the speed of the fast protocols and efficiency, security and virtually costlessness of Satoshi’s proof-of-work consensus.

The utility and efficacy of layer 1 protocols is unquestioned, yet they are not without faults. If that were the case, Ethereum would have had a monopoly on the crypto markets a long time ago. Dubbed “eth killers”, smart contract networks are all competing for network dominance over Ethereum. Competitors are markets, scaling, and pushing their code to limit in an effort to promote business being conducted on their blockchain.

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Our opinion is Kadena has seen an incredible rise in price and sentiment. Short-term, we can argue that it is treading overbought territory. There can easily be volatility in the short to midterm. However, as the demand for NFTs, metaverse, and gaming, continues to grow, so will Kadena.

This sentiment is bolstered by their team of developers, marketing efforts, and roadmap leading into Q3 and Q4 of 2022. The market potency of NFTs, gaming, music, and the metaverse is strong and lucrative. As long as Kadena can drive forward and meet expectations with deliverables, it could be in the top 15 (big caps), with Ethereum, Solana and Cardano.

Where To Buy?

Similar to how you would buy another cryptocurrency, you can purchase Kadena on most major exchanges like KuCoin. You can either place a market buy or a limit buy. With a limit buy, you determine the price you are willing to pay, and your order gets filled once the token price reaches your limit price. If you want to get your hands on the token quickly, you can place a market order, where you agree to pay the current price and have your order filled almost immediately. If you are interested in purchasing Kadena you can do so by visiting KuCoin.

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