Kadena

What is Kadena (KDA)?

Kadena (KDA) is the native token of the blockchain of the same name. Kadena Ecosystem multi-chain platform which takes a unique approach to scalability using 20 blockchains. It is also known for its second level solution, Kuro, which provides support for up to 8000 transactions per second. Current price data for Cadena can be seen in the chart above.

Who founded Kadena?

In 2016, Kadena was founded by FinTech experts. Stuart Popejoy and Will Martino. Popejoy was executive director of JP Morgan’s new products division, working with blockchain technology. Martino worked with JP Morgan’s open-source blockchain project Juno and is now president of Kadena LLC.

An important figure on Kadena’s advisory team is Dr. Stuart Haber. He is known as one of the co-inventors of blockchain technology and was frequently cited by Satoshi Nakamoto in his Bitcoin white paper. Haber also helped develop Kadena’s NFT platform Immutable Records.

Before the official launch, Kadena held several token sales. There were two types of sales – for non-accredited and accredited investors. Non-accredited investors did not reside outside the US and could purchase assets at Kadena’s $1 price. The accredited sale was open to US and certain foreign investors at a $0.50 discount.

Kadena’s idea was to create a blockchain that would function similarly to Bitcoin, but be more scalable and offer faster transaction speeds. Moreover, the Kadena team sought to make their project multi-chain, which would allow for more opportunities for mass adoption.

The Kadena mainnet officially launched at the end of 2019. A few months later, in January 2020, Kadena, a scalable hybrid blockchain platform, was released. At that time, the price of KDA fluctuated between $0.20 and $0.50. For the most part, the asset experienced low to moderate volatility and did not cross the $1 threshold during its first year.

April 2021 saw Kadena break above the $1 mark for the first time, although it fell closer to its launch level in subsequent months. In the second half of the year, the asset began to show more noticeable growth. In November, around the same time Bitcoin soared to nearly $70,000, Kadena’s price peaked at $28.25.

How does Kadena work?

Kadena has a fixed supply of 1 billion tokens. All Kadena coins are expected to be mined within 120 years of launch. It means that the asset is deflationary The price of Cadena is expected to rise as supply dwindles.

One of the unique services that Kadena offers is crypto gas stations. They allow businesses to cover transaction fees for their customers. High gas fees are a big point of contention for many skeptics, as they often discourage people from using cryptocurrency. The use of gas stations aims to make blockchain transactions more accessible to potential users.

Kadena’s infrastructure consists of two main components: the Layer 1 public blockchain protocol. Chain web and layer 2 solution Kuro. In total, Kadena consists of 20 chains. Before the network expansion in 2020, there were 10 networks in the network.

Chain web often described as the first segmented and scalable layer 1 network which uses a Proof-of-Work consensus mechanism. The braided chains that make up Chainweb maintain a structure that similar to Bitcoin. This network is responsible for strengthening data security and integrity while maintaining Kadena’s scalability.

Kuro this is a network Layer 2 private blockchain solution. It offers fast and efficient transactions, supporting high speeds across 500 network nodes. Kuro can act as side chain to optimize transaction or data management processes in healthcare and finance. Transactions are generally completed using the KDA price value.

The Kadena blockchain provides special support for smart contracts. This is a technology that is not available in Bitcoin. Kadena smart contracts Turing-incomplete and programmed with Pact language. It automatically detects errors in code and allows non-developers to read contracts, simplifies updates, and ensures compatibility.

The platform says it can support both enterprises and small customers thanks to its unique blockchain structure that combines both permissioned and permissioned chains, as well as smart contracts. The price of Kadena’s services depends on the size of the project and the technology required.

Unlike more traditional decentralized networks, Kadena uses a unique technology known as braided chains. All 20 chains in the Kadena ecosystem operate simultaneously and asynchronously, validating new transactions and recording them within blocks. This allows the network to verify up to 8,000 transactions per second.

Multiple chains reduce the load on the network and increase block confirmation time, making it more difficult for attackers to find a suitable timestamp to attack the network. This also allows you to produce more blocks in a shorter period of time. According to Kusama, target block time is 1.5 secondsor 20 blocks in 30 seconds.

The network has developed strategies to deal with transaction congestion. So, to avoid accumulating too many transactions on one chain, Kadena’s fee price is automatically adjusted to redirect traffic to empty chains.

The Kadena crypto network is secured using a combination of two consensus mechanisms: Proof of Work (PoW) And Directed Acyclic Graph (DAG). This system is sometimes called parallelized PoW. By using this consensus mechanism, the security of the Kadena network is strengthened while also providing high throughput and scalability.

DAG technology is responsible for offloading network processing. Using this structure, each chain can interact with three other peer chains. This means that all 20 chains do not need to communicate directly with each other. Transactions can be verified faster without compromising data security or integrity.

The decision to use a parallel PoW system was made to make the network more resilient and scalable. According to the developers, networks such as Bitcoin and Ethereum, which use traditional proof of work, face problems with scalability and transaction speed. They are also more resource efficient and require high mining costs.

Miners who participate in the block validation process are entitled to network rewards. Rewards are collected from the value of Kadena transaction fees. Miners are incentivized to redirect transactions to different chains if some of them are overloaded. The block reward amount is adjusted every six months to account for deflation.