Just a few days ago, the Bitcoin network turned 14 years old, and it’s amazing to see how far the crypto industry has come. But even with all the progress, blockchain and the crypto industry still suffer from growing pains. The industry suffers from extreme price volatility, fraud and user experience that is far from ideal.
Mass adoption may be the holy grail of blockchain and the crypto industry, but there are several obstacles to progress. One of the biggest issues was scalability. After all, if you want millions of people to use your cryptocurrency, the network must be able to handle the traffic.
Blockchain speed is measured in transactions per second (TPS). Another important metric is transaction completion time (how long it takes to confirm a transaction). Together, these parameters determine the scalability of the blockchain.
Many blockchains suffer from low TPS and long transaction completion times, which can minimize user experience. Bitcoin and Ethereum, the most widely accepted currencies, are hard to scale. During periods of heavy usage, transaction times and fees increase significantly.
The hard problem to solve is network speed without sacrificing decentralization or security. Ethereum co-founder Vitalik Buterin called this problem the blockchain trilemma — the pursuit of security, scalability, and decentralization. Solana has struggled with this over the past year, suffering three outages, one in April and two in May.
Some recent projects are looking to overcome the blockchain trilemma and Kadena is one of them. In the following sections, we will delve into the history of Kadena, what Kadena hopes to achieve, and what makes Kadena different from other projects.
Presentation of Kadena
Kadena is a Layer 1 Proof of Work (POW) protocol that uses a two-tier technology. It is designed to help developers of all skill levels develop applications from concept to launch. Kadena is highly scalable due to its multi-strand braided structure.
The first layer is a public blockchain called Chainweb and the second layer is a private blockchain called Kuro. Together, these tiers support up to 480,000 transactions per second across multiple woven chains. To achieve scalability, Chainweb fragments transactions.
The Kadena architecture combines 20 parallel managed chains that simultaneously form a single network. Chainweb’s design linearly increases transaction throughput as more chains are added in parallel. The Kadena multi-chain network provides security without sacrificing transaction speed and scalability.
Kadena has developed Pact, an open source smart contract language that is not Turing complete. To promote the functionality of the Kadena blockchain, Pact was created to be read and used by developers and non-developers alike.
The Pact code runs as an immutable transaction directly on the ledger in a human-readable format, which means that anyone can publicly inspect Pact smart contracts. Developers can also update Pact smart contracts at any time without the need for a hard fork.
Why do people use Kadena (KDA)?
One of the main advantages of Kadena is its ability to offer low cost transactions by offering high transaction speeds and reduced transaction completion times. Kadena also introduced a cryptocurrency service station feature that gives businesses the ability to eliminate transaction fees for their customers.
There are over 20,000 cryptocurrencies in existence today, many of which have little to no use cases and others are outright scams. The value of a crypto project can be measured by how useful it is and whether it solves a real problem. Let’s see how Cadena performs.
Pharmaceutical tracking and tracing
- Rymedi is a workflow management software for disease testing and vaccine administration.
- Kadena has integrated its hybrid blockchain into the Rymedi healthcare platform, allowing traceability of the origin of controlled substances. The Kadena blockchain also provides a data management solution for the healthcare sector.
Fund management/fintech
- United States Commodity Funds LLC (USCF) is an American company that manages exchange-traded funds.
- Kadena’s hybrid blockchain provides the scalability needed in the fund management industry and the ability to manage public and private data.
Latin American fintech and public infrastructure
- Alteum is a Latin American technology organization focused on developing blockchain and distributed ledger technology (DLT) for enterprises and governments who have chosen Kadena for its speed, scalability, affordability, security.
- The Kadena blockchain is integral to Alteum’s goal of solving problems in Mexico.
Other use cases for KDA tokens include:
- Direct peer-to-peer transfers (payments)
- Create new smart contracts
- Pay the cost of gas to execute smart contracts
History of Kadena (KDA)
Kadena was founded in 2016 by Will Martino and Stuart Popejoy. Both are experienced in building blockchains and built the first JPM blockchain for JP Morgan coins. Kadena’s advisory board also includes Stuart Haber, co-inventor of blockchain technology. He is the most cited author in the 2008 Bitcoin White Paper.
KDA is the native token of the Kadena blockchain and was first released as part of two private token sales as a Simple Agreement for Future Tokens (SAFT) in early 2018.
The private sale was followed by a public sale split between accredited ($0.5/KDA) and non-accredited ($1/KDA) investors.
The KDA distribution looks like this:
- Mining: 700 million will be mined in 100 years
- Platform sharing: 200 million will be issued within nine years
- Investors, strategic reserve and contributors: 90 million
- Burned at launch: 10 million
The maximum supply of KDA is 1 billion and the current circulating supply is 216,066,617.
KDA token inflation looks like this.
- Genesis Block offers a reward of 23 KDA per block.
- This amount will decrease by 0.3% every 87,600 blocks (approximately every 30 days) based on a block time of 30 seconds.
- From block 95,308,800 to block 125,538,055, the block reward stops at 1 KDA per block and resets to zero at block 1,25538057.
Where to buy Kadena (KDA)
KDA can be purchased on 24 crypto exchanges, including Binance, Binance.US, Kucoin, and Gate.io. CoinMarketCap publishes the full list of exchanges that support KDA. Below are the trading pairs for the four listed exchanges.
- OKX: KDA/USDT
- Binance: KDA/BTC, KDA/USDT, KDA/BUSD
- Binance.US: KDA/USD, KDA/USDT
- Cookoin: KDA/BTC, KDA/USDT, KDA/USDC
- Gate.io: KDA/BTC, KDA/USDT
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Best for
Variety of tokens
Blockchain Kadena vs other blockchains
So how does the Kadena blockchain differ from its competitors? This section will highlight some of the key differences.
Looking at the first row of criteria in the table above, you can see that Kadena is light years faster than other blockchains. Moving on to the second line, you can see that Kadena is the only POW blockchain; PoW consensus makes Kadena much more secure. Kadena also has a huge advantage in terms of transaction fees and scalability.
How to Store Kadena Safely (KDA)
The cold storage wallet is not available for KDA. Ledger is working with the Kadena team to bring the Kadena app to Ledger Live. Three hot storage wallets are available.
Chainweaver is the official Kadena wallet available for desktop and web apps. It is more than just a crypto wallet; it can be used for advanced blockchain development and smart contracts. It is more difficult to use than other wallets.
X-Wallet is an extension for Chrome and Brave browsers that is also compatible with iOS and Android. It integrates with most NFT and DeFi Kadena dApps, as well as the Kaddex DEX, which allows you to trade, stake, and provide liquidity with your tokens.
The Zelcore wallet, unlike the first two, is a multi-asset wallet. Zelcore is built on a multi-asset/protocol platform that allows consumers to access and view the entire blockchain universe from one place. With the Zelcore Wallet, it is easy to buy, store, trade and trade assets on any protocol and exchange. Zelcore supports over 450 coins with the ability to import over 50,000 tokens and supports over 60 blockchain protocols.
Whether you choose one of these wallets or another wallet, do not store your cryptocurrency on exchanges.
Is now a good time to buy Kadena (KDA)?
So, after reading this article, are you ready to invest in KDA? If so, is it time to buy KDA?
KDA is highly correlated with bitcoin, which drives the cryptocurrency market cycles. Knowing this when Bitcoin is in a market cycle helps determine if the time is right to buy KDA.
The chart above shows the price history of bitcoin. It measures the time intervals from one bull market peak to the next and from one bear market bottom to the next.
As for the timing of market cycles, they are relatively constant, especially the last two. It’s no secret that the best time to buy cryptocurrencies is close to a bear market low, but trying to time the market and buy exactly at the low is tricky. A safer strategy is to start a trading average near the bottom. Examining the chart above shows that the time could be right now. Bitcoin and other cryptocurrencies are highly speculative, so you want to invest money that you can afford to lose.
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