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What is Kadena (KDA)?
Kadena basic info
What Is Kadena?
Kadena is a Layer 1 blockchain ecosystem designed to benefit a diverse range of builders, regardless of their level of expertise. It was founded in 2016 by William Martino and Stuart Popejoy, both of whom have extensive backgrounds in blockchain and financial technology, having worked on JPMorgan’s first blockchain project, the JPM Coin. Kadena stands out for its dual-layered blockchain system, Chainweb, a public blockchain, and Kuro, a private blockchain, both designed to address the common issues of scalability, security, and speed that have hindered the mass adoption of blockchain technology.
Kadena's unique architecture allows it to offer solutions to the blockchain trilemma, enabling it to achieve security, scalability, and decentralization simultaneously. It employs a multi-chain, braided structure, allowing it to process transactions at an industrial scale, making it a suitable technology across various industries. The ecosystem supports community projects and is actively being adopted by early Web 2.0 and Web 3.0 companies, connecting to major entities like Ethereum Mainnet, Polkadot, Terra, and Amazon.
Resources
Official Documents: https://docs.kadena.io/basics/whitepapers/overview
Official Website: https://kadena.io/
How Does Kadena Work?
Kadena operates through a distinctive dual-layered system. The first layer, Chainweb, is a public blockchain, allowing any user to contribute to the ledger, enhancing functionality and scalability. It initially operated with 10 chains but was upgraded to 20 braided chains to improve scalability without compromising security. Chainweb achieves scalability by sharding transactions and can process up to 480,000 transactions per second, a significant improvement compared to Bitcoin and Ethereum.
The second layer, Kuro, is a private blockchain, tailored for commercial applications and operates at a much faster rate than Chainweb, capable of processing 8,000 transactions per second over 500 nodes. Both blockchains work in tandem, using a multiple-braided chain approach, combining the Proof of Work mining model with the desired level of privacy. Kadena’s architecture, including its smart contract language, Pact, is designed to drive the growth of DeFi ecosystems, offering a Turing-complete language, meaning it includes all functions that can be executed by computers.
What Is KDA Token?
KDA is the native cryptocurrency of the Kadena network, used to pay for block mining and computational power. It plays a crucial role in transaction fees, with users paying KDA to include individual transactions in a block. However, Kadena has introduced innovative solutions like Gas Stations, enabling zero-fee transactions and removing a significant barrier to mass adoption. The tokenomics of Kadena are structured with allocations for miners, reserve, seed/investor, and developers, with miners receiving the majority share as they are responsible for the security of Kadena.
Kadena's Impact on Finance
Kadena’s impact on the financial sector is profound, positioning itself as a top alternative for blockchain adoption in global banking and financial services. Its advanced features, such as industrial scalability, security equivalent to Bitcoin, and the ability to process more than 200 transactions per second with confirmations within 10 seconds, make it a desirable technology in finance. Its smart contract language, Pact, is developed for enterprise-level applications, allowing non-programmers to create scalable solutions efficiently.
Kadena’s approach to resolving the issues of scalability, security, and decentralization in blockchain technology makes it a strong contender in the blockchain and cryptocurrency space, competing with giants like Ethereum and Bitcoin. Its continuous advancements and the introduction of features like an NFT marketplace and a zero-gas DeFi trading platform, Kaddex, signify its potential for large-scale adoption in the future.
What Determines Kadena's Price?
The price of Kadena (KDA), like other cryptocurrencies, is influenced by a myriad of factors, making it essential for cryptocurrency enthusiasts and potential investors to stay abreast of cryptocurrency news and trends. One significant determinant of Kadena's price is its supply and demand dynamics in the cryptocurrency market. The availability of KDA on various cryptocurrency exchanges such as Bitget allows for increased accessibility and liquidity, impacting its price. Additionally, the overall sentiment in the crypto community, driven by cryptocurrency experts, influencers, and events, can significantly sway Kadena's price, either driving it upwards during periods of positive sentiment or causing declines during negative market moods.
Cryptocurrency analysis and cryptocurrency charts are crucial tools for those interested in the price prediction of Kadena, offering insights into its potential price movements in 2023 and beyond. The adoption rate of Kadena, especially its integration and utilization in various sectors, plays a pivotal role in its valuation. As more entities embrace Kadena for its innovative blockchain solutions, its value is likely to experience an uptrend. However, potential investors should be wary of cryptocurrency risks, such as market volatility and security concerns, and consider employing robust cryptocurrency trading strategies and crypto portfolio management practices to mitigate risks associated with investing in Kadena. Balancing the insights from cryptocurrency analysis with the prevailing cryptocurrency regulation, market conditions, and individual investment goals can aid in making informed decisions on whether Kadena is a good investment for 2023.
KDA supply and tokenomics
Uniqueness
Kadena offers a public proof-of-work blockchain with unparalleled throughput by combining two separate consensus mechanisms: DAG and proof-of-work .
In simple terms, Kadena achieves this by braiding chains together, meaning it offers not one but several (20) separate blockchains that all work simultaneously and asynchronously to validate transactions. This allows Kadena to mint multiple blocks simultaneously, thus increasing its throughput. This also increases security by reducing an attacker's time between block confirmations.
Kadena uses a directed acyclic graph structure to scale from one proof-of-work blockchain to theoretically an unlimited amount. However, its DAG structure is fixed and multi-channel, meaning Kadena's blockchains only communicate with three peer chains instead of randomly confirming transactions. This improves real-world performance and scalability.
Kadena can scale as required by the needs of its users. However, the main limitation is adoption, as scaling and adding additional blockchains requires the network to undergo a hard fork . In theory, Kadena can scale to 50 or 100 blockchains or even more if it demonstrates continued adoption. The process is not automatic though: once the network becomes congested, fees rise and miners forming a DAO are incentivised to cooperate in reconfiguring the network to a larger size.
Token utility
KDA is a digital currency that is used to pay for compute on the Kadena public chain. Similar to ETH on Ethereum, KDA on Kadena is the manner by which miners are compensated for mining blocks on the network and is the transaction fee that users pay in order to have their transactions included in a block.
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What is the development prospect and future value of KDA?
The market value of KDA currently stands at $304.01M, and its market ranking is #239. The value of KDA is not widely recognized by the market. When the bull market comes, the market value of KDA may have great growth potential.
As a new type of currency with innovative technology and unique use cases, KDA has broad market potential and significant room for development. The distinctiveness and appeal of KDA may attract the interest of specific groups, thereby driving up its market value.