Understanding Importance Of Kadena Blockchain
While the popularity of blockchain technology soared substantially, thanks to its adoption among several industries, it has been a source to many technological upgrades including the Kadena blockchain.
The vision of Kadena blockchain relies profoundly on addressing the requirement of security with blockchain technology.
It can ensure attributes of the Proof of Work consensus algorithm which has safeguarded Bitcoin for a long time.
The market capitalization of Kadena KDA is around $275 million, and the token achieved an all-time highest price of $25 in November 2021. The allocation of Kadena tokens has been divided into: miners (70%), reserve (20%), seed/investor (6%) and developers (3%).
The working of Kadena with a multi-chain Proof of Work architecture shows that it can accommodate more chains for adapting to the demand of scalability.
Kadena is based on Proof of Work consensus through a unique Braided Chain approach which helps in achieving scalability through the multi-chain architecture.
Achieving scalability is one of the major obstacles in the mass adoption in the blockchain and crypto industry. The large-scaleadoption of cryptocurrencies results in increased traffic on the network. Facilitating seamless transactions is a crucial determinant for defining the scalability of a blockchain.
Lower transaction speed and longer transaction finality times can result in negative user experiences.
Achieving security, scalability, and decentralization simultaneously is an almost impossible task. For instance, Bitcoin offers strong security and decentralization, amid limited scalabilities. New blockchain networks, on the other hand, offer the benefits of decentralization and scalability through Proof of Stake mechanism. However, such blockchain networks have to compromise in terms of security.
Kadena founders brought about radical change in the chain technology to develop proprietary chain architecture that would help businesses capitalize on the value of blockchain technology.
Kadena, a first layer-1 or L1 blockchain, can offer permanent solutions for scalability. It also assures security with Proof of Work consensus alongside the benefits of decentralization.
The architecture titled ‘Chainweb’ helps in scaling up to 480,000 transactions per second. Around 20 chains can operate simultaneously on the network, thereby helping in adapting to new scalability demands.
When compared to Bitcoin and Ethereum, with a TPS of 7 and 15 to 25, Kadena is a humongous improvement. Kadena achieves the improvement in scalability through smart contracts which facilitate cross-chain interoperability.
The Chainweb is not the only highlight in the working of the Kadena KDA network. It has also embedded a private blockchain at the second layer, known as Kuro, and both layers can support the scalability demands. Both blockchains work with each other in a multiple-braided chain approach. Chainweb can achieve scalability by sharding transactions.
Chainweb, Layer 2 blockchain, Pact, are some of the important features of Kadena blockchain network.
In future, the Kadena KDA network plans to introduce an NFT marketplace and a zero-gas DeFi trading platform, Kaddex.
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