What Is Kadena (KDA)?
Kadena (KDA) is a platform that seeks to provide a comprehensive decentralized infrastructure to help businesses achieve full crypto capabilities. The Kadena platform aims to provide the tools needed to go from concept to launch for businesses. Simply put, to make blockchain work for everyone, Kadena endeavors to provide a one-stop solution for the resources required to create blockchain applications.
According to the platform, Kadena was formed on the concept that blockchain technology can transform how the world communicates and transacts. However, to achieve widespread acceptance, a reinvention of chain technology and the ecosystem that connects it to the business was necessary. To achieve this requirement, the creators of Kadena designed a proprietary chain architecture and the technologies to make blockchain work for business at a better speed, scalability, and energy efficiency.
One of the key offerings of the platform is Pact, a proprietary language for smart contracts. Kadena self-proclaims Pact to be simple and secure enough to create smart contracts for developers with varied expertise. Smart contracts, similar to regular contracts, are contracts that run on blockchains instead of being drafted on paper. Kadena claims to have tested its proprietary language, Pact, in production applications for more than two years. Further, Pact aims to be fundamentally different from other languages in that it is understandable by non-developers and discovers bugs automatically before being exploited. As a result, Pact aims to protect users from attacks on Ethereum and other platforms.
The platform states that Pact’s distinct features and adaptability support any conceivable use case. Kadena intends to use Pact to provide “liquidity commons,” which is a liquidity pool that aims to allow for unique incentives and transaction flows across various exchanges. In addition, the platform aims to offer an NFT marketplace called Marmalade that functions as a framework for the creation and operation of game-changing NFTs. This marketplace seeks to differentiate itself by providing fully on-chain transactions, cheaper gas fees, and shared platform ownership.
Further, the Kadena blockchain seeks to provide a crypto gas station that allows businesses to eliminate any transaction costs for their customers, reducing a significant barrier to DApps’ wider adoption. Apart from the offerings mentioned earlier, the ecosystem has over forty projects listed across varied categories, from wallets to DEXs to metaverse games.
Kadena makes use of the proof-of-work (PoW) consensus mechanism, which aims to be trustworthy and secure to meet the security and throughput expectations of financial industry clients. In contrast to the existing PoW mechanism, Chainweb, a Kadena parallel-chain PoW, attempts to provide huge throughput without considerably increasing computational capacity. According to the whitepaper, Chainweb aims to scale to at least 1,250 chains capable of processing up to 10,000 transactions per second (TPS) while retaining PoW’s resistance to fraud and censorship.
KDA is the Kadena chain’s digital currency used to pay for computing. The token aims to have two main utilities. The KDA token aims to act as a reward for miners who mine blocks on the Kadena network and the transaction fees that users pay to add blocks.
History of Kadena (KDA)?
Kadena was c-founded by Will Martino and Stuart Popejoy in 2016. Having rich experience in blockchain, Martino and Popejoy built JP Morgan’s first blockchain, known as the JPM coin. Further, Dr. Stuart Haber, the co-inventor of blockchain and the most referenced author in Satoshi Nakamoto’s acclaimed 2008 Bitcoin whitepaper, is part of Kadena’s advisory committee. During 2021, various projects onboarded the Kadena ecosystem, adopting its scalable PoW and Pact-safe smart contracts.
The Kadena platform reports a maximum total supply of 1 billion KDA, which proposes to be mined over a 120-year period.
How Are New KDA Tokens Created?
The Kadena network uses mining to earn KDA. The process of mathematically “solving” a block is mining, and a block cannot be included in a chain unless it is solved. Since Kadena employs PoW, computing power is rewarded with coins that are associated with each block.
The platform states Kadena has an approximate block time of 1.5 seconds, or 20 blocks for every 30 seconds. The platform also illustrates the miners’ reward schedule. Every six months, the block rewards adjust following a predetermined schedule, with around half of the outstanding minable coins granted as block rewards every 20 years.
