Does the world need another private blockchain? A startup named Kadena thinks the answer is yes, releasing a new version of blockchain, a tamper-proof accounting system running on multiple computers, for free on Amazon Web Services on Wednesday.
The founders of Kadena, who helped lead the blockbuster group of JP Morgan, a pungent time, before fighting on their own in 2016, claim that their version of a blockchain, ScalableBFT, is superior to the alternatives offered by IBM and others.
In an interview with FortunaCo-founder Stuart Popejoy said that existing versions of private blockchains are inadequate because they slow down when more than 20 users try to participate. This alleged flaw is significant because the main purpose of a blockchain is to allow more people to view and maintain a shared ledger almost in real time.
On Wednesday, Kadena also said that two Fortune 100 companies in the health and insurance sectors are using its blockchain to manage data. (Kadena wounds does not say which companies, citing confidentiality obligations).
"With the adoption of blockchain technology on the rise in many sectors, from government to health care to insurance, companies need the right tools to address security and scalability," Popejoy said in a statement.
Smaller projects can now use Kadena on AWS for free, while Popesay says the startup intends to charge large companies to use its blockchain tools. Kadena is now available on AWS Marketplace (an app store of sorts for cloud services) and the company claims it is negotiating with Microsoft to extend it to the latter's Azure cloud.
Kadena will be competing against other private blockchains, including those offered by IBM and a consortium known as R3. Papajoy says that Kadena's offering will be distinguished by its speed and because it is not based on Ethereum, a protocol for smart contracts widely used but which has struggled to reach dimensions.
The Kadena team raised $ 12 million in 2018 from various encrypted investment funds, including Multicoin Capital, and from the Susquehanna International Group and Devonshire Investors, the private investment arm of the owners of Fidelity Investments.