Kaden's public blockchain is based on a high-performance Proof of Work system with the Chainweb security protocol, which provides increased throughput. It combines private blockchains with public applications and other interoperable chains – all of which directs traffic to the KDA-based computer, which has a very high bandwidth.
Parallel Operation of Several Chains
There is only one blockchain in Bitcoin. In KDA, several chains operate in parallel, which interact with neighboring ones. Blockchains form plexuses in which a global consensus is reached. To increase throughput, you just need to add additional chains – in theory, the network can grow to an unlimited number of transactions per second without the need for a second level.
For writing KDA smart contracts, the Pact language is used, which has a readable open source code that can be formally verified. This is convenient not only for developers, but also for specialists without technical inclinations. The task of Pact is to correct the shortcomings that the Solidity language used for Ethereum had.
Solving the Scalability Problem
The strongest advantage of the KDA cryptocurrency is that the problem of scalability in Proof of Work blockchains is solved here. This is a network of many chains included in several interconnected blockchains. The convenience of users is that any account they create exists exclusively in this chain. To become the owner of a specific account name in all chains, you must create it first in each chain.
Corporate software Kadena today is used by large financial companies, insurance and medical, as it makes it possible to immediately move from creating an idea to developing a product. When a public network is launched, the software supports the development of private and public applications and provides communications between them.
Minimum Transfer Fees
The system provides for minimal commissions for transfers, there is no need to keep a reserve of native tokens. The system has a kind of "filling stations" – special accounts, where the developers provide for the payment of commissions for transactions instead of users.
High Number of Transactions
Cryptocurrency KDA scales by providing a mechanism for the non-synchronous creation of multiple blocks in peer-to-peer chains of the same height – each block needs a host part. And this dramatically increases the number of transactions per second in the entire network.
The team behind the project created the chain in 2016 but only launched it in 2020. The founders, Stuart Popejoy and Will Martino, were already involved in cryptography and project management in the digital division of JPMorgan bank before the development of the blockchain. To launch the KDA cryptocurrency, the project team attracted investments in the amount of more than $15 million in 2017 and 2018. The startup was supported by well-known funds CoinFund and MultiCoin Capital and other venture capital companies.
The blockchain uses the Proof-Of-Work consensus system (like Bitcoin and Ethereum). The project team believes that this method of confirming transactions provides the highest level of security, but cannot scale. Kadena has found an innovative way to do more transactions per second than PoW protocols. The chain uses the concept of a web.
If we take, for example, Bitcoin, there is only one blockchain. In Kaden, several chains run in parallel. Each network interacts with neighboring blockchains, forming a plexus where a global consensus is reached. To increase the throughput, it is enough to add additional chains. Thus, the network can potentially grow to an unlimited number of transactions per second without the need for a Layer 2.
Another feature of Kaden is transaction fees, which are one of the biggest problems with PoW blockchain: they are too high. Blockchain developers have created a system with a minimum commission for transfers.
Also, you do not need to have native tokens in stock in order to pay a commission when making transactions on the network. The creators took care of this in advance. They created “gas stations,” which are special accounts on the blockchain that allow dapp developers to pay transaction fees in advance instead of users. And finally, Kadena uses a new smart contract programming language called PACT, which aims to fix the shortcomings often found in the Solidity language used by Ethereum.
Kadena is a cryptocurrency that is quite easy to use compared to other blockchain technologies. It is used to pay for calculations in the public network of the same name. Just like ETH in Ethereum, the KDA coin is a token in its network. There, miners receive compensation for mining blocks – in the form of commissions for user transactions included in the block.
Applications that process transactions in Kadena have high throughput and execute their code using their own token. The more applications join the network and begin to interact with it, the more the number of executed smart contracts will grow, and the usefulness of the coin will also grow. Most of the coins here are a reward for decentralized mining, due to which the network grows and functions.
Miners produce and validate blocks, for which they are rewarded in the KDA. They are also used as a unit of account in transaction fees. The minimum fractional unit is the so-called "hop". Coins are just as functionally simple as Ethereum: they can be directly transferred between users, you can create new smart contracts with their help, and also pay for the cost of gas when executing these contracts.