Posted 6 months ago | by Catoshi Nakamoto
It seems like there is a new layer one smart contract platform in the race every other week, but every now and then one comes along and gains traction because of some key features or innovations. Kadena is one of the newest up and coming layer one blockchain projects and it’s gathering a lot of attention because of its unique architecture, fast speeds and deep connections to some of the major players in tech.Read More
Let’s get it.
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In this video we’re going to be doing a review of Kadena, which has been one of the hottest crypto projects in the market this month.
Kadena is a layer one smart contract platform that is secured by a unique proof of work consus algorithm that allows for high speeds and low transaction fees. Kadena’s price has exploded over the past month, increasing in value by roughly 10x in the last 30 days. Considering that it has already had such a strong rally, it is extremely important to be careful about your entry points if you decide to jump in. You don’t want to dive in with a massive investment when there might be a correction just around the corner. When you see an interesting project like this taking off, it’s best to do some research and dollar-cost-average, make small investments over a bit of time, if you think that the project has potential. With that being said, the entire market took a massive beating on Monday and everything is on sale, so it might be a good time to go shopping, not financial advice of course. Kadena has been getting a ton of attention recently, so let’s dive into some of the research and see what’s been happening. The rally that we have seen this month was no coincidence, Kadena has had a few fundamental shifts which lined up in a perfect storm to help push the price to new all time highs.
Kadena got a massive liquidity boost with a recent listing on the crypto.com exchange, which has over 10 million customers. That exchange listing certainly played a small role, but there is a lot more going on behind the scenes as well.
Earlier this month, a lesser known exchange called CoinMetro allowed Kadena holders to stake their KDA on the platform. Holders rushed in to stake 730,000 KDA in just 20 minutes.
Many of the first major applications have recently gone live on Kadena, and some of the first NFT drops on the chain have happened in the past few weeks. Kadena has also formed a partnership with UFO Gaming, a blockchain-based gaming platform that has plans of building a metaverse.
In a press release announcing the partnership, UFO Gaming said that they chose Kadena because of a few important features. First of all, Kadena’s scalability and speed are already at the level needed for a blockchain game. The team behind Kadena says that this network is capable of handling 480,000 transactions per second, which is nearly 10 times higher than Solana’s 50,000. The current design includes 20 sub-chains called braided chains, which help increase the network’s throughput, and this number is expected to grow over time. A future upgrade is expected to move that number up to 50.
Kadena’s unique architecture also allows for more user-friendly app and wallet integrations, which helps developers design applications where users can sign in without a complicated private key, which they say is necessary for taking this technology to mainstream gamers. Kadena also has some unique features for NFTs, including giving developers the ability to code into the back-end of an NFT directly, which expands the potential use-cases of NFTs.
In addition to the low gas fees that already exist on Kadena, it also has another feature called “gas station” that allows developers the ability to entirely eliminate gas fees for their users. A gas station is basically a pre-funded account that pays the gas for users to be onboarded and get involved.
This is one area that Kadena seems heavily focused on, making it easier for people to get involved by lowering the cost and technical barriers to entry as much as possible. Features like the gas station are possible because there is a massive token allocation set aside to build out the network, including large grants for developers, and a majority of the tokens going to miners to make up for the lower profits from fees. Unlike Bitcoin mining, Kadena mining does not get more difficult over time, which means that the blockchain will not need to consume more energy as it scales. This could help them avoid some of the energy FUD if the critics bother to listen. This also means that mining will be more accessible to the average person and won’t be centered in massive industrial mining farms as we see with Bitcoin today.
Kadena uses a unique programming language called Pact, which the team has described as “the first truly human-readable smart contract language.” This programming language was specifically designed to simplify smart contracts so they are easier to work with.
You might be able to tell by now that in order to achieve this level of scalability, Kadena has taken some trade-offs when it comes to decentralization in certain areas. That’s not necessarily a bad thing when looking at Kadena as an investment, especially considering that it is starting out by focusing on non-financial use-cases like gaming. Don’t let that fool you though, this project has some major connections to legacy finance.
It was actually founded by two former employees at JP Morgan, Stuart Popejoy and Will Martino, who led the bank’s Blockchain Center for Excellence when they worked there. They also built the company’s first blockchain called Juno, which was eventually used as the model for JPM Coin. An article in January from Forbes even said that JP Morgan “spun off” Kadena as a hybrid blockchain. The reason it’s called a hybrid is because there are two main chains for Kadena…the private chain called Kuro and the open source smart contract chain called Pact. Kadena has been working with financial cartel entities like USCF which is an alternative investment fund just like our old pals Barry Silbert and his company Second Market. Kadena is also being used by Rymedi an start up that is working with the FDA to tracks various food infrastructure data. Don’t be fooled by the sexy marketing. Kadena has deep ties to Ole Fi and it’s on just started it’s run.
Thankfully there is still plenty of development on the Defi side of Kadena. There is also an official wrapped version of Kadena coming to Ethereum, so you can use it in your favorite Ethereum-based DeFi applications. Be careful though, some scammers have already created fake versions of the wKDA to cash in on the hype, so make sure that you are only buying tokens or interacting with smart contracts that come from official links. As a bonus; Kadena is also planning to expand into other networks with wrapped tokens, starting with Polkadot, Cosmos and Terra-Luna. It’s the year of smart contracts and Kadena is positioned to be one of the best new projects to make it through the bear market and continue to innovate.
But that’s all I got. Be Blessed. Bit Boy Out.