Proof of Work (PoW) is a consensus algorithm used in blockchain technology to validate transactions and produce new blocks. In PoW mining, “miners” compete to solve hard mathematical problems, and the first to solve a problem adds a new block to the chain and is rewarded with newly minted cryptocurrency. The use of computing power and energy consumption ensures security by preventing centralization as well as the risk of fraud. When no user can attempt to spend the same digital token twice, the integrity of the system remains intact.
The design of Kadena’s scalable PoW consensus algorithm is more efficient and secure compared to traditional PoW-only systems, making it a “greener” alternative for crypto mining.
Kadena’s unique multi-chain architecture makes it the only platform that can deliver increased energy efficiency as transaction volume scales. With 20 chains live, Kadena’s current network capacity sits at 600 transactions per second (TPS), nearly achieving the energy efficiency of Visa. When the network approaches the need for a higher transaction volume due to increased usage, the network will increase the number of chains again to handle the load. This allows the network to process more transactions per second than a single-chain system such as Bitcoin.
Perhaps most significantly, scaling Kadena does not require more miners to join the network. At 20 chains and 600 TPS, Kadena’s throughput is 100x that of BTC and there are no compromises to either security or decentralization. As network demand increases, Kadena’s energy use remains constant.
Having 20 blocks every ~30 seconds minimizes Kadena’s energy cost per transaction, establishing it as one of the lowest in the industry. Kadena strives to carbon footprint in PoW for its community of miners.
Finally, and perhaps most excitingly, Kadena Eco will announce its second cohort of grantees very soon, wherein one of the grantees will be paving the way for a greener future for PoW mining on Kadena.
Make sure to follow Kadena on our social channels for some very exciting upcoming announcements!