Q1: What are the main advantages of a hybrid blockchain in comparison to the existing ones?
A1: A hybrid blockchain offers the best of both worlds, connecting public and private blockchains seamlessly by preserving permission controls while providing accessibility and trustlessness. For example, some of the blockchain use cases already being explored include Anti-Money Laundering (AML), Know Your Client (KYC), and cross-border payments, where a lot of time and effort is spent on verifying information. Performing these functions on a hybrid blockchain provides both privacy and transparency that could offer value to both auditors and regulators.
Kadena’s distinct advantage is with offering an all-in-one platform for hybrid blockchain applications. Our platform allows any off-chain computations or secure data to run on a private ledger and then link to our public blockchain through the Pact smart contract language. This creates a whole new marketplace for turning cost centers into revenue generators.
Kadena is the first hybrid blockchain available on the market.
Q2: What does Kadena hope to achieve by the launch of the hybrid blockchain?
A2: Kadena strives to inspire a new wave of blockchain adoption by enterprises and entrepreneurs across various industries. Ideally, this adoption will assist in on-boarding a wide range of participants to blockchain.
An example of this is demonstrated in Rymedi’s CBD oil tracking. In this use case, customers scan a simple barcode with their cell phones to receive data about a product’s origin and journey. The validation of purchasing and authenticity is especially useful in geographies where fraud and quality concerns remain potentially life-threatening issues.
Tracking the quality of medicinal products is one way that Kadena’s hybrid platform can help enterprises and consumers interact securely on blockchain.
Q3: Kadena is often referred to as a blockchain company founded by former JP Morgan executives. How does this experience help in your new endeavor?
Kadena’s Co-Founder and President Stuart Popejoy and I were two of the first members of J.P. Morgan’s Blockchain Center of Excellence, where we led JPM’s first blockchain, Juno. Before building anything, we conducted an in-depth analysis of early versions of Hyperledger, Axoni, Symbiont, Ripple, and Ethereum. This research made it clear to us that existing blockchain options on the market were technologically inadequate for the needs of enterprises.
We worked on – and learned from – the challenges of adapting existing public blockchains for enterprise use, including what it takes to successfully lead financial institutions toward decentralized technology. We also discovered that the inside of a bank was not the right place to drive blockchain forward, as we couldn’t make the decisions we needed to truly drive innovation. Using our experience at J.P. Morgan as a framework, we left the J.P. Morgan team in 2016 to found Kadena, a hybrid blockchain platform company.
Q4: Since we touched upon J.P. Morgan, would you like to comment on the famous dislike of J.P. Morgan’s CEO towards Bitcoin?
A4: Since Jamie Dimon expressed skepticism over cryptocurrency, J.P. Morgan has become one of the first financial institutions to embrace blockchain. As CEO of a financial institution that manages a quarter of the U.S. dollar supply, it makes sense that Dimon would be skeptical of a decentralized and fluctuating coin. However, his skepticism has not affected JPMorgan’s willingness to participate in blockchain technology.
Q5: Many currently popular blockchains are simply not fast enough to process the number of transactions per second required by modern fintech. How will Kadena address this problem?
A5: Kadena addresses this problem with the features of our private blockchain Kadena Kuro and Kadena’s public blockchain.
Kadena Kuro is the first permissioned blockchain that can scale to thousands of nodes. Our proprietary BFT-consensus protocol has been proven to achieve up to 8K TPS with latencies well below 100ms in real-world testing with 256 nodes.
Kadena’s public blockchain is a massively parallel protocol that brings efficiency to Proof of Work. The increase in attack-resistance offered by the public chain’s multiple chain architecture significantly lowers the required per-chain hash rate. The use of hash rate to support additional chains serves to increase throughput, utilization, and security.
Q6: Scalability is one of the main challenges in existing blockchains. How will Kadena address this challenge?
A6: Kadena’s public blockchain functions through a braided, parallelized Proof of Work consensus mechanism. The architecture enhances throughput and scalability while preserving the reliability of Bitcoin. The issue of scalability is addressed in Kadena’s public blockchain by providing a mechanism to asynchronously produce many blocks on different peer chains all at the same height, with each block requiring a fraction of the hash power of the total network. This configuration drastically increases the number of transactions per second over the total network.
Q7: Your press release promises to take the cryptomarket “by storm.” What do you mean?
A7: Kadena’s hybrid platform offers features that will transform how enterprises, entrepreneurs, and developers build applications on blockchain. Kadena’s public blockchain is a braided, parallelized Proof of Work consensus mechanism that improves throughput and scalability while maintaining the security and integrity found in Bitcoin. Kadena Kuro, the platform’s next-generation private blockchain, overcomes the challenges of security, scalability, and speed found in existing blockchains such as Ethereum.
The hybrid blockchain supports interoperability using Pact, Kadena’s open-source and Turing-incomplete smart contract language with Formal Verification. The simple smart contract language is powerful enough to code complex contracts and execute multi-party transactions. Enterprises and developers alike will find that applications once considered too difficult to build are now achievable with Kadena. Removing the complexity and vulnerability of other smart contract languages, Pact advances secure and legible transactions.
Launching a fully functional hybrid blockchain which seamlessly integrates a public chain with a private network is a significant step forward in blockchain technology. Kadena is already delivering interoperability, scalability, and security across industries including finance, healthcare, and insurance.
Q8: Future blockchains, will they all turn hybrid? Is there space for non-hybrid blockchains?
A8: In the future, there will remain space for non-hybrid blockchains. This will depend primarily on the individual needs of an enterprise or developer. For some business models, a hybrid blockchain makes absolute sense. For others, a strictly private chain will do just fine. There will continue to be a place for purely public chains as well. While hybrid blockchain platforms are the future of blockchain, they are not the only solution for businesses looking to deploy applications on the chain.