What is Kadena? And Should You Invest?
Each and every day, it seems as if there is a new cryptocurrency project hitting the top 50 charts on CoinMarketCap. And this isn’t an incorrect assumption. Because there are so many new projects on the market, it can be difficult to learn about them all and know which you should invest in.
Kadena is a newer cryptocurrency and blockchain project which aims to address the problems found both in the Ethereum and Bitcoin blockchains. The project has already entered a period of mass expansion, teaming with several other blockchain companies on the market.
This doesn’t mean that it’s the perfect project however, so you should keep reading to find out more about Kadena, and if it is truly worth your investment or not.
What is Kadena?
Kadena is a hybrid blockchain, looking to connect the features of both Bitcoin and Ethereum. The main problem with Bitcoin (according to some people) is its inability to host Dapps, as well as its inability to be scaled. Meanwhile Ethereum has high gas fees that are quickly pricing it out of the realm of affordability for most businesses. This is where Kadena comes in.
Kadena is a buildable blockchain like Ethereum, while also being a store of value like Bitcoin. It uses a proof of work system that is based on the same Byzantine Fault Tolerance as Bitcoin, but it can process many chains at once, allowing it to process 8000 transactions per second—much an improvement when compared to Bitcoin’s 7. Kadena claims to have the ability to process 100,000 transactions per second, but this has yet to be proven.
The blockchain also offers both private and public features, making it easy for the everyday individual to use it for transactions between friends, as well as for businesses to use it to expand their company offerings into the blockchain realm.
Kadena is written in a special coding language called Pact. This language is unique because it can be read by non-developers, making it easier for companies to know what is going on with their programming. Additionally, the Pact language can automatically detect bugs in its code, saving developers lots of time and money.
Can You Mine Kadena?
Because Kadena is a proof of work protocol, it can be mined, which sets it apart from most projects to recently hit the cryptocurrency market. One of the big issues with mining the traditional way (as Bitcoin is mined) is that it leaves a huge fossil footprint, which is why so many projects are going with the more environmentally friendly proof of stake consensus method.
Kadena has a solution for this too. They don’t use a local CPU or GPU to mine Kadena, but rather native ASIC hardware. This can be done using the Blake algorithm and various mining pools.
Sound great right? Well, there is one problem, it is very expensive to get set up with this type of mining equipment, and it isn’t very rewarding. Currently, the amount of money you would need to invest up front to become a miner is about $55,000 and you can expect to earn $370 per day. This means it would take months to get a return on your initial investment if everything were to go perfectly.
What is KDA?
Just as ETH is used to pay for transactions on smart application on the Ethereum blockchain, KDA is the native token used to pay for transactions on the Kadena blockchain. And if you mine Kadena, this is the currency you will be paid in for validating transactions.
For those interested, KDA is not easy to purchase just yet. There are rumors that it is going through the process of becoming available on Coinbase, but for now, if you want to own the coin, you will have to go through KuCoin exchange to get some.
One of the reasons there is so much hype behind Kadena is because they have already partnered with some big names in the cryptocurrency world. They’ve already announced future collaborations with Celo, Cosmos, Ledger, and Polkadot to name a few, and they’ve got a platform in development for NFTs, which are all the rage.
Who Invented Kadena?
Kadena actually isn’t a new concept, as it was thought up in 2016, shortly after the launch of Ethereum. It was invented by Stuart Popejoy and Will Martino who worked together previously on JP Morgan’s blockchain token, known as JPM Coin. The project took a while to launch however, and it wasn’t until 2020 that the Kadena blockchain began to have the functionality and user base to make it a competitive player in the cryptocurrency and blockchain world.
Should You Invest in Kadena?
This is a tough one. Kadena certainly seems like the project that has all the answers, and it truly could be the blockchain of the future. The problem? Well, Kadena is just too new, and many of its aspects remain untested.
Not to mention that competition in the cryptocurrency space is fierce, and Kadena has picked two of the biggest blockchains to rival. If they truly have a superior project, they probably will be able to surpass Bitcoin and Ethereum someday, especially because they seem to have more real world application.
There are also a few concerns when it comes to the Kadena blockchain, most due to the fact that its creators are a little too closely tied into the CEFI world. They both worked for JP Morgan, and one of them previously worked for the SEC. This means that although the blockchain brags decentralization, they may be more centralized than they are currently letting on.
But as said above, it’s just too soon to know if Kadena is the blockchain to truly bring adaptability to the modern world. For this reason, any investment in Kadena should be approached with caution, and you should be prepared to possibly lose all of your money. Remember that diversity can be key when it comes to investing in the cryptocurrency world.
Of course, if you like the Kadena project, there isn’t an obvious reason not to invest, so go for it, just be aware that this a project that is still on the iffy side of the cryptocurrency world and that any investment in it will require some research. And it’s always a good idea to run any investments by someone you trust before you make them.