Founder and CEO of Kadena, Stuart Popejoy, spoke about the transition from private to public blockchain, describing it as an adjustment period where they had to embrace cryptocurrency. He emphasized the importance of the network and how it is not typically associated with enterprise-level operations.
Popejoy acknowledged the ongoing debate surrounding the merits of private blockchains. Kadena, which was initially a private JPMorgan blockchain, made the shift to a public spinoff in 2020, taking Popejoy along with it, given his previous role as a JPMorgan executive.
He explained that there was some innovation in private blockchains, which resonated with Kadena. However, they recognized the need for a solution that could cater to business-scale requirements, leading them to develop their version of a public blockchain.
One of Kadena’s notable features is horizontal scaling, with a focus on safe smart contracts and scalability as a risk management measure. Popejoy highlighted the delays in Bitcoin transactions when the system is overwhelmed and stated that Kadena’s approach addresses this issue.
Popejoy frequently referenced Bitcoin and expressed his belief that the problem with proof of work is not its energy consumption but its inefficiency in utilizing that energy. He criticized Bitcoin for its lack of improvement over the past decade.
Similar to Bitcoin, Kadena employs a proof-of-work consensus mechanism but incorporates horizontal scaling to enhance its efficiency. Popejoy confidently claimed that Kadena could settle the entire U.S. stock market on a daily basis.
Although not everyone views speed as an advantage, Popejoy stressed that smart contracts and security tokens can include clawbacks to mitigate risks. Currently, Kadena operates with 20 parallel chains, but expanding the number of chains would not significantly impact energy consumption.
Popejoy identified the distribution of money as the main issue with proof of work. He argued that proof of stake generates and distributes money based on ownership, whereas proof of work provides a fairer distribution by allowing coins to be acquired through participation.