What Is Kadena (KDA) And How Does It Work? | KuCoin Crypto Gem Observer

2021/05/11 11:41:54

Does the perfect blockchain exist? This is a difficult question to answer, as each variation has its own strengths and weaknesses. While Bitcoin enjoys high-levels of integrity, it lacks the adaptability enjoyed by Ethereum. For enterprises, finding the perfect blockchain for their needs can be the difference between success and failure.

When the team behind Kadena were searching for that blockchain, they found a gap in the market for global financial institutions. Seeing the opportunity to cater to this growing market, they set out to develop a blockchain platform tailored to their needs.

What is Kadena?

Kadena is a hybrid blockchain platform that combines a public blockchain, a permissioned network, and the Pact smart contract language. One of the main goals set out by Kadena is to realize the potential of blockchain technology, which it aims to achieve with its unique design and combination of technologies.

The project focuses on fixing issues faced by enterprises and entrepreneurs when it comes to blockchain. Namely, there was no solution available that was able to offer the rigorous performance and security requirements of a global financial institution. By releasing Kadena, the team believes there is now the perfect option for those seeking industry-leading speed and safety for large-scale projects.

How Does Kadena Work?

The way Kadena works revolves mainly around the hybrid blockchain platform design. The three elements each complement each other in a way that allows for scalable, secure, and relatively simple development.

The public blockchain used by Kadena, Chainweb, is the only sharded and scalable layer-1 PoW network in production today. This allows for improved throughput and scalability, while still maintaining the level of security enjoyed by Bitcoin. As of 2020, Kadena’s public blockchain runs using a braided, parallelized design consisting of 20 chains, further increasing the throughput and scalability.

Next is Kadena’s permissioned network, Kuro. This private blockchain enables the project to meet the strict requirements and business workflows of a global enterprise. By focusing on scalability and usability, Kadena’s platform enjoys a high level of versatility, aided further by its open-source design.

The smart contract language Pact is what facilitates interactions between the public and permissioned chains. It acts as a bridge that ties the ecosystem together and enables some of the most innovative developments to take place. Pact in particular is good at facilitating transactional logic with the optimal mix of functionality in authorization, data management, and workflow.

Who Created Kadena?

Kadena was created by an experienced team of engineers, cryptographers and more. In particular, Stuart Popejoy and Will Martino founded the project in 2016.

The duo initially worked at J P Morgan's Blockchain Center for Excellence. Together building the company's first blockchain called Juno. However, they both faced issues when searching for the ideal blockchain project for global financial institutions, which is when they decided to build it themselves.

What is KDA?

The KDA token is the main token of the platform and is used in numerous ways, such as to pay for compute on the platform.

The token distribution is as follows:

Miners: 70%

Platform: 20%

Investor/Strategic: 6%

Contributors: 3%

Burned: 1%

What is KDA Used For?

KDA is the digital currency used on the Kadena platform. One of the main use cases is to pay for compute on the Kadena public chain. The token is used to execute the smart contract code too.

Additionally, KDA is the payment method in which miners are compensated for mining blocks on the network. It is also the means in which the transaction fee is paid by users to have their transactions included in a block.

Trade KDA and 200+ other altcoins on KuCoin.

Closing Thoughts

Kadena’s founding makes for a great story. After searching for and not finding the solution they need, they set out to do it themselves. What they created with its innovative design is able to serve a very promising market - finance.

The team shows great promise, working directly in the relevant industry and building blockchains that are still in operation today. They have brought this knowledge and leadership to Kadena, which bodes well for the future of the project.

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