Kadena is the only scalable Layer 1 Proof of Work (PoW) blockchain. With its multichain technology, chainweb, it has been able to solve the Blockchain trilemma without adopting the Proof of Stake Consensus.
What is Proof of Work?
Proof of work is a consensus mechanism that allows users to validate cryptocurrency transactions by solving a complicated mathematical problem. The first computer that solves the puzzle validates the transaction and is awarded a fixed amount of cryptocurrency. Then the cycle starts again. It’s the most widely used consensus mechanism in blockchain technology, made popular by the mainstream cryptocurrency, Bitcoin. The algorithm also adds new blocks to the chain for data storage, something that requires more energy. Through hashes, users can detect tampering in the blockchain. A given hash function will only ever generate one hash, due to the “avalanche effect”, where even a tiny change to any portion of the original data will result in a totally unrecognizable hash. Before the advent of cryptocurrency, Proof of Work was initially created as a proposed solution to the growing problem of spam email.
The Problem with Proof of Work
The main problem and controversy that comes with Proof of Work is the amount of energy needed to solve the hash, and the race between computers as a result. PoW consumes a lot of energy, which makes it extremely environmentally unfriendly.
In the US alone, Bitcoin mining has been reported to create an estimated 114 metric tons of carbon emissions annually. Even though most miners have opted to use renewable energy sources in powering their mining machines.
A study from the University of Cambridge, proved that 39% of the energy consumed by cryptocurrencies comes from renewable energy sources. Though, many climate change experts still tag crypto mining as toxic for the environment.
Network security in PoW consensus is relative to the energy spent and not to its hashrate. Solving a hash takes a certain amount of energy, and using specialized hardware is gaming the metric. This significant amount of energy spent is what Kadena has set out to solve through its Kadena green PoW method.
Kadena’s Eco-Friendly PoW
Blockchains’ energy output is not reliant on how many transactions are made. Transactions per second and power consumption are not related. Power consumption and increase in the number of miners that get involved in that particular PoW blockchain does.
Kadena can scale up to 20X the transaction volume of both Bitcoin and Ethereum, Kadena can grow to more chains in the future as needed. At the same time, the more transactions being made on-chain, the less energy is output.
For other PoW blockchains that cannot expand their transaction capacity, the more miners that come in, the more energy needed to carry out transactions on the blockchain. Meanwhile as the Kadena network grows and more miners come in, the chains will be grown if need be to handle more transactions.
Kadena allows connectivity to the public blockchain through its high-performance network, handling demanding use case requirements. This achievement is because the network enables the use of a custom-service architecture.
According to Cryptowisser.com Kadena is ranked among the top 100 Eco-friendly Blockchains, with high energy efficiency and low carbon footprint. With $KDA miners consuming approximately 0.028TWh in 1 year, comparable to to same energy output as an email with a large attachment. That’s less than 0.1% of both Bitcoin and Ethereum’s annual power consumption. Even if the number of KDA miners tripled throughout the next year, the annual power consumption of KDA would be insignificant to its competitors.
With companies such as Tesla refusing to accept Bitcoin payment due to its risk to the environment, blockchains which are not made eco-friendly in the long run may be forced to lose out on mass adoption. We could also expect possible government intervention if blockchains continue to negate The Paris Agreement on climate change.
Written by: Micah Ogugua