Smart contract startup Kadena has reared $2.25 million in a pre-A financing private-placement SAFT round that would benefit its new blockchain endeavor.
According to the startup, Metastable, Kilowatt Capital, Coinfund and Multicoin Capital all chipped in on Kadena by way of a private-placement SAFT round.
The funding goes to back Chainweb, a project that is concentrated on scaling and security issues and made possible through the combination of multiple peer blockchains to process transactions, as opposed to the use of one single decentralized blockchain like the one that triggers bitcoin, according to Kadena co-founder Stuart Popejoy.
By using numerous chains, users can stay away the network issues which trouble other public blockchains such as bitcoin and ethereum, the former JP Morgan Chase blockchain developer explained.
He said:
“A Cryptokitties-like application can run on five or six chains of its own, while a massive [initial coin offering] can happen on another chain in the network and they won’t slow each other down.
“And even if you run into an issue where you have congestion, you can provision chains to make up for the load.”
The different chains incorporate their Merkle roots with each other, guaranteeing that while they each act as a unique blockchain, they can still share information and generate a consensus among the ledgers.
Unlike other scaling projects, Chainweb’s parallel network model keeps security without using side channels or only using part of a blockchain to facilitate a large number of transactions.
Popejoy said Kadena’s tests found an extremely high level of security with their proposal, which means to produce roughly 1,000 different chains eventually.
Additionally, each chain would produce Kadena’s token, though the precise function that determines how many tokens are freed and what timeline they will be released over has not yet been determined, Popejoy stated.
That being said, the Chainweb protocol will make sure that the same coin cannot exist on two chains at once.
“It is a single currency, when you want to move coins from one chain to the next it’s a [Simple Payment Verification] so coins are deleted on one chain before being created on the other,” he said.
The project started as a way to cultivate improved smart contract language for users, Popejoy said.
It combines with Pact, the smart contracts service already offered by Kadena to enterprise customers.
However, Chainweb will not be for businesses and would become a public network, he said.
