Kadena’s Interoperability Story Part II:


Businesses will not replace their existing applications with new blockchain ones overnight; they need to integrate with their existing systems. Kadena exists to become the ultimate settlement platform — It was built from the ground up with finance, security, regulation, and new paradigms in mind. It took all of that to build the next-gen system that can settle the entire United States stock market without breaking a sweat. Kadena is here to drive the next round of business and social transformation. Kadena’s founders have proven experience building software systems for leading financial and government organizations such as JPMorgan Chase Bank and the U.S. Securities and Exchange Commission. Kadena has shipped a platform that can work with various industries including but not limited to the banking industry, insurance industry, and healthcare industry; regardless of their current infrastructure. One healthcare firm already demonstrating use cases through Kadena is Rymedi, which thus far has been focused on deploying hepatitis C vaccines in Mongolia. It uses blockchain technology to govern its patient management system, and Kadena will become its gateway into the U.S. Kadena has also worked with Humana to create a “golden record” of provider contact data.


Pact can initiate a payment/settlement smart contract using a wide variety of existing payment rails (off-chain via oracles) and other blockchains, ensuring safe delivery is achieved with certainty that the payments have happened. Currently, on Ethereum, the moment you have two smart contracts trying to interact, you have a parity multi-sig problem. For example, if a dApp interacts with a price feed contract and the price feed contract fails, we might lose all of our value. The EVM only has single public key sig accounts and contract accounts. Gnosis enables multi-signature capabilities for decentralized finance, which allows them to secure, create, trade, and hold digital assets on Ethereum. Making a Gnosis multi-sig account can be expensive. Built-in multi-sig on Pact means that you don’t have to resort to more complicated smart contract solutions like Gnosis for Ethereum to get the security benefits of multi-sig. Multi-signature is absolutely where the future is, and Kadena is proud to lead the way. In Pact, single-sig and multi-sig are synonymous and thus are both natively supported out of the box. Since Pact has formal verification and is Turing-incomplete, interoperability is more predictable. Solidity can’t formally verify and, therefore, should not be used for settling billions of dollars worth of value.


Chainweb allows interchain applications and smart contracts to be deployed/executed across protocols — Enabling solutions built on Terra such as Mirror Protocol to easily connect to a solution on another platform such as Kadenamint on Cosmos or Kusama on Polkadot, etc. Thinking long-term, opening the possibility for interchain operability is a must. ZelCore and Torus wallet integrations facilitate the use of KDA across a latitude of applications. In Kadena’s public blockchain, smart contract simple payment verification allows for automated cross-currency exchanges with multi-step pacts. Suppose that Alice wants to exchange her Kadena coin with Bob’s Bitcoin. She initiates a pact by escrowing her Kadena coin, and Bob responds with a Merkle proof of the corresponding transfer to her Bitcoin address. The pact then validates the proof of the transaction history and releases the escrowed funds to Bob’s Kadena account. To allow these exchanges, Pact requires direct support for the Merkle proofs of the other popular currencies, such as Bitcoin and Ether. For cross-currency exchanges, one must verify the authenticity of the Merkle proof by “linking” the proof’s root to the roots of the longest branch of an external cryptocurrency.


With just twenty chains (which already provide much more throughput than any other PoW blockchain on the market), miners can easily keep track of all chains and mine all chains concurrently. This means Chainweb allows applications to benefit from the intrachain value of the same underlying protocol — Kadena has the advantage of native oracles, which came from the need to transfer value intrachain but, once implemented, produced other benefits:

  • Protocols such as KADDEX will easily interop with the upcoming DAO and NFT platforms set to launch on the platform to achieve a combined value.
  • Developers have the freedom of using one or all chains to deploy apps on.
  • Since the KDA token is just an instance of fungible (Kadena’s version of ERC-20), you don’t need a wrapped version like Ethereum had to do with Wrapped ETH, which facilitates intrachain transactions.


What happens if you want to interchange one platform for another? KADDEX and soon other dApps on Kadena can achieve that holy grail of interoperability by being completely agnostic to the underlying platform. With the power of high throughput blockchain and bridges, KADDEX will offer a dex-aggregator (like https://1inch.exchange/#/ aggregate “multiple ETH based Defis”) that will seamlessly aggregate multiple-protocol based platforms (Defi, DAO’s, NFT markets). The key to being “multi-protocol” is to actually be scalable while still being actually decentralized. KADDEX running on multiple chains, and then even on Cosmos or Polkadot, is the future. Chainweb will roll out to as many chains as demand dictates. Plus, we can then talk about KADDEX running on Cosmos/Kadenamint and Polkadot/Core Pact under the same multi-venue AMM system as the Kadena venues. Chainweb will be integrated with Ethereum, Celo, Polkadot, and Cosmos chains like Terra. On Ethereum, protocols like Maker will also collateralize wrapped KDA tokens. Since Celo is a platform focused on mobile Defi, bridging to KADDEX opens up the doors to more value. To this extent, Kadena’s partnership with Flux has been key since day one since ZelCore will make these interchanges seamless.



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