There has never been so much buzz around blockchain technology. While the benefits of blockchain technology are often mentioned, the downsides and weaknesses are often overlooked. One of those weaknesses is the long processing time of blockchains. And that is exactly where Kadena with its KDA Coin comes into play.
Still, Kadena has become a “fallen angel” recently. As a result, the popularity and the market capitalization of this cryptocurrency are plummeting.
This trend is most likely caused by the lack of a strong ecosystem. There are hardly any applications developed in the Kadena network.
Rightly so or interesting entry opportunity?
Kadena aims to significantly reduce the processing time of blockchains and thus ensure better scalability and lower transaction costs. With a block time of only around 1.5 seconds, Kadena is faster than average. The benchmark Ethereum is very slow and expensive due to the use of the proof-of-work mechanism.
Kadena is a proof-of-work blockchain that allows developers to create optimized decentralized applications. Kadena was developed as an alternative to Ethereum and was founded by Stuart Popejoy and Will Martino, both of whom have worked for major US bank JPMorgan. Interesting to know: Popejoy and Martino were also the ones who developed JPMorgan’s first blockchain. Namely, the internal token of JP Morgan, which is used to move trillions of dollars every month.
In 2019, the initial coin offering took place. In 2022, Kadena ranks #100 in terms of market capitalization, with around USD 400 million. Hence, a rather small project.
A distinctive feature of the project is the fact that Kadena contains an entire ecosystem. With Chainweb and Kuro, the project consists of two blockchains, which are primarily intended to solve the problems of speed, costs, sustainability, and scalability of the classic blockchains.
A really interesting approach.
Chainweb is the layer 1 blockchain on which transactions can be made, while developers can build their applications on Kuro, the second-layer blockchain.
Chainweb uses the proof-of-work algorithm. However, Kadena splits its proof-of-work into different mining chains. These can work on the transaction in parallel and thus process a larger number of transactions faster. A double-check of the individual blocks promises security.
The layer 2 blockchain at Kadena is…