Crypto Quill

Kadena, a blockchain platform that claims to offer scalability, security, and simplicity, has announced that its network hashrate has reached a new all-time high of 666.88 Petahashes per second (PH/s) on January 28, 2024. This is a remarkable achievement considering the recent decline in Bitcoin’s hashrate and price.

What is Hashrate and Why Does it Matter?

Hashrate is a measure of the computational power that is used to secure a blockchain network. It indicates how many hashes, or mathematical calculations, a miner can perform per second. The higher the hashrate, the more secure and decentralized the network is, as it becomes harder for an attacker to gain control of the majority of the mining power and manipulate the blockchain.

Hashrate also reflects the level of interest and investment in a blockchain project, as it shows how many miners are willing to dedicate their resources and electricity to mine the native token and support the network. A rising hashrate can signal a growing demand and confidence in the project, as well as a potential increase in profitability for the miners.

How Does Kadena Achieve High Hashrate?

Kadena is a hybrid blockchain platform that combines a public Proof-of-Work (PoW) network with a private Proof-of-Stake (PoS) network. The public network, called Chainweb, consists of 20 braided chains that interconnect and validate each other, creating a highly secure and scalable system that can process over 480,000 transactions per second.

Chainweb’s design allows Kadena to achieve a high hashrate without compromising on energy efficiency or decentralization. Unlike Bitcoin, which uses a single chain that consumes a lot of power and is prone to congestion, Kadena’s multiple chains distribute the workload and reduce the energy consumption per transaction. Moreover, Chainweb’s braided structure prevents any single chain from advancing too far ahead of the others, ensuring that the network remains synchronized and resilient.

Kadena’s hashrate has been steadily increasing since its launch in 2022, as more miners join the network and compete for the rewards of the native token, KDA. According to ASIC Miner Value, a website that tracks the profitability of mining hardware, Kadena is one of the most profitable coins to mine right now, with a daily revenue of $5.13 for a Bitmain Antminer KA3 (166 TH/s), using 3154W of power.

How Does Kadena Compare to Bitcoin?

Bitcoin, the largest and most popular cryptocurrency, has been facing some challenges lately, as its hashrate and price have dropped significantly in the past month. Bitcoin’s hashrate, which peaked at 197.6 Exahashes per second (EH/s) on January 1, 2024, has fallen to 113.5 EH/s on January 31, 2024, according to [BitInfoCharts]. This is a 42.5% decrease in one month, which could affect the security and stability of the network.

One of the reasons for the decline in Bitcoin’s hashrate is the energy crisis in Texas, where many Bitcoin miners are located. The Electric Reliability Council of Texas (ERCOT) has imposed restrictions on power usage and increased the electricity prices, forcing some miners to shut down their operations or relocate to other regions. Another reason is the drop in Bitcoin’s price, which has fallen from $51,534 on January 1, 2024, to $33,789 on January 31, 2024, according to [CoinMarketCap]. This reduces the profitability and incentive for the miners to continue mining.

Kadena, on the other hand, has been able to maintain and increase its hashrate despite the unfavorable market conditions. This is partly because Kadena’s miners are more decentralized and distributed across the globe, making them less vulnerable to local disruptions. It is also because Kadena’s network is more efficient and scalable than Bitcoin’s, allowing it to handle more transactions with less power and fees.

What Does This Mean for Kadena’s Future?

Kadena’s impressive hashrate growth demonstrates its potential as a leading blockchain platform that can offer a viable alternative to Bitcoin and other cryptocurrencies. Kadena’s vision is to create a blockchain for everyone, that can support various use cases and applications, such as decentralized finance, gaming, social media, and more.

Kadena’s CEO, Stuart Popejoy, has expressed his optimism about the future of Kadena in a recent blog post, saying that Kadena’s answer to the complexity of blockchain is simple: braided chains. He explained that Chainweb’s braided chain architecture allows Kadena to help developers scale their projects with ease, using the same tools that they use to scale KDA. He also said that Kadena is working on several exciting features and partnerships that will be announced soon.

Kadena’s hashrate achievement is a testament to its innovation and resilience in the blockchain space. As the network continues to grow and attract more users and developers, Kadena could become one of the most influential and successful blockchain projects in the industry.